High Net Worth Individual Investors: The Influencing Power and Position in Equity Markets

Abstract

As the High Net worth (HNI) Investors mount in the financial markets with great financial power, their footprint is clearly directing the Retail Investors. During the last decade Indian HNI Investor’s exposure to the Mutual Funds and Primary Equity Market is not just substantial but also provides an early base to potential and stable capital Markets. Growth and sustainability of capital markets depend on wider participation of Retail Investors. The study concludes that Retail Investors are investing under the influence of HNI Investors Investments and the interaction of HNI and Institutional Investors is impacting them in a positive manner. There is a clear statistical evidence of HNI Investors influence on the investments of Retail Investors either in the primary market or the secondary market.

Index Terms: HNI Investors, Proprietary Trading, Assets under Management, IPO Subscription