Markets have existed for as long as humans have engaged in trade. Today’s market however has evolved from physical bazaars selling tangible goods believed to have originated in Persia to online virtual spaces selling intangible bonds. With the evolution of the market space investing has become a well-talked topic around the globe. The word Investing, however, has been around for longer than when money investment was a thing.

Investing literally means the committing of resources into something whilst expecting a positive return. In the words of Warren buffer- a legendary investor  “Investing is the process of laying out money to receive more money in the future“.

When investing in the stock market (the ‘market’ where shares are sold ) an investor- the one doing the investing; purchases an asset, which usually is a stock – a small piece of a company, expecting a higher return in the form of capital gains (where the investor sells the bought shares at a higher price)  or dividends (a fraction of the profit of the business). Sounds like easy money? But wait. There are risks too. Making the wrong investments at the wrong time can also cause an investor to lose money.

With drastic changes in the market, it is only expected that new rules are set down and new challenges are to be addressed. The world investor week, a weeklong global campaign to be celebrated on October 4th to 10th serves just this. The concept is an initiative of the International Organization of Securities Commission (IOSCO) and focuses on raising awareness about the importance of investor education and protection. It also highlights various initiatives of securities regulators in investor education and protection.

The World investors week serves primarily two specific objectives. The first being to spread key messages that support investor education, investor protection, and financial literacy, while the second being to create learning opportunities for investors. It focuses on all segments of the population; including employees and entrepreneurs, senior investors, young adults, and teenagers. 

Like all things that faced speedbumps the past two years due to the pandemic, investment activity too collapsed in April and May 2020. However, while Covid 19 was a massive shock then, it came surging back up thereafter.

According to Simon Crookall, founder of InvestEngine in 2019; there has been a surge in sign-ups to trading apps during the pandemic. Significant fluctuations on the market Covid had imparted had led to an increase in people joining the stock market hoping to get in at the right time- an expression of an increased risk appetite.

Surveys show investors expect another strong year for financial markets because the economic recovery is likely to continue, but markets could easily start moving sideways.

In addition to this, a noticeable change in the stock market is that Covid -19 has spurred interest in environmental, social, and governance initiatives among the investors, indicating that investors are indeed responsive to shifting consumer demands. With all the effects Covid has and will impart to the realm of investors globally, the World Investor Week serves as an ideal platform for new and updated insights to investors.

Moving to the pearl in the Indian Ocean investing in the age of new normal has come with its own challenges experienced by the rest of the world.

In addition to the investment in stocks at the Colombo Stock exchange, investment in cryptocurrencies like bitcoin and other forms like NFTs – Non-fungible deposits have become popular amongst young investors. The need for a stockbroker (- the middle man), is also in decline thanks to the internet and automation. Keeping up with the rest of the world has become more important than ever.

The World Investment Week is indeed a great opportunity to get in with the trends in investing and to help investors young and old to maximize their returns and take calculated risks while investing. With WIW activities reaching over 522 million people last year and 22,958 webinars, classes, talks, lectures, town meetings, seminars, and conferences reaching 36 million people the impact is only expected to grow more this year.

Written by Rtr. Reema Shakir