The craze of Future and Options (F&O) is increasing in the country . In order to become rich overnight, small investors are buying and selling calls and puts in Future and Options. However, the profit in this segment is less and the loss is more. Let us tell you that only 1 percent of the investors have earned an average profit of Rs 1 lakh in this segment while the rest have lost Rs 75,000 crore.
Investors suffered a total loss of Rs 1.8 lakh crore in 3 years
In the futures and options (F&O) segment, 91 percent or 73 lakh individual traders suffered losses during the last financial year 2023-24. These traders suffered an average loss of Rs 1.2 lakh per person. This information has been given in a study released by market regulator SEBI on Monday. Apart from this, out of more than one crore individual traders associated with futures and options, 93 percent suffered an average loss of about Rs 2 lakh (including transaction costs) per trader during 3 years i.e. from FY 2021-22 to FY 2023-24. The total loss of such investors during this period was more than Rs 1.8 lakh crore.
Investors lost Rs 75,000 crore in just 1 year
Investors incurred a net loss of nearly Rs 75,000 crore in FY2023-24 alone. A study by the Securities and Exchange Board of India (SEBI) found that the top 3.5 per cent (around 4 lakh) investors who suffered the most losses lost an average of Rs 28 lakh per person during the same period, including transaction costs.
Only 1 percent of investors earned Rs 1 lakh
On the other hand, only 7.2 per cent of investors made profits in a period of 3 years and only 1 per cent of investors managed to earn profits of more than Rs 1 lakh after adjusting for transaction costs. Moreover, the number of retail investors or individual traders almost doubled in 2 years to around 96 lakh in FY 2023-24 from around 51 lakh in 2021-22. However, such investors contributed to around 30 per cent of the total turnover in FY 2023-24.