Radhika Gupta, CEO of Edelweiss Mutual Fund, recently took to X to caution young people about funding their lavish lifestyles through high-risk trading. She warned that such practices could have serious consequences for the economy if significant losses occur.
“I’ve seen people in their 20s claim they don’t need a job because they’re earning enough through F&O trading. Young women who say their lifestyle and luxury items are financed by trading profits,” she wrote.
Gupta emphasized that the Economic Survey 2023-24 highlights this issue, urging action to address it due to the potential dangers for both individuals and the economy.
“The Economic Survey uses strong language to highlight this trend. Other regulators have also issued repeated warnings,” she added.
She shared a screenshot from the survey, which pointed out:
- A significant increase in retail investor activity in India’s capital markets, with 9.2 crore unique tax IDs on the National Stock Exchange as of FY24, up from 2.7 crore in FY19.
- Many young investors are now engaging in derivatives trading, which, while offering potential gains, also comes with substantial risks. The survey warns that a major stock market downturn could lead to significant losses for retail investors using derivatives, potentially discouraging their future participation and impacting the broader economy.
Social Media Reaction:
Gupta’s post sparked mixed reactions online.
One user commented, “The government is concerned about derivatives but not about online gaming platforms, which are essentially casinos! People lose more money there than on stock exchanges!”
Another user noted, “It’s troubling to see 20-25 year-olds talking about making crores through trading and feeling like they never need to work. This narrative is all over YouTube, pushing financial freedom to young people. There’s something seriously wrong when jobs are scarce, yet educated young people are entering the workforce with these expectations.”