Retail investors have now started to look at debt issues, follow- on public offers and IPOs with enhanced circumspection to maintain close scrutiny of prices. For raising increased cash, a retail investor can consider selling some shares at high prices. Retail investors have started to make selection based entry within the market. There has been an increase in their appetite for risk, and some investors have started to make investments again after a short break, while ensuring caution. Schemes of mutual fund as well have started to seem some good participation in retail. All of this has resulted in reviving retail interest (Hofstede, 2011).
Currently, two contradictory perspectives have emerged across the market. First, some of the investors are more attracted towards high level mutual funds. Second, other investors are making selective purchases within public offerings of attractive value (Hirshleifer, 2011). The two contradictory signals come out from the behaviour of retail investors. However, there is no doubt that the interest of some retail investors come back in seeing value. Retail investors have also become extremely choosy. In their past experiences, they have faced major losses even after being at a peak position in the market.
Inflow investment in Mutual Funds end up surging in the period of market peak. In a market facing cyclical fall, significant losses are faced by retail investors. Therefore, since the past few years, they reflect lack of confidence across the market platform (Seasholes and Zhu, 2010). Retail investors still invest after researching on and referring to several investment decisions. However, since recent years, the losses appear to be worrying factors for a number of retail investors, and they even put in efforts for recouping the losses. Mutual funds have started to see major redemptions out of equity schemes as the trend of markets are higher. They are now putting in efforts for recovering the money after they make an exit.