Indians prefer social networking to stock broking!

Tuesday, July 13, 2010, 15:18 by Business Editor

There is proof that Indians seem to be more interested in connecting to people than in making money!

A study, carried out by SMC Capitals, gives statistics showing that there are approximately 3.1 crore people who use social networking sites like Orkut, Twitter and Facebook, as opposed to just 1.7 crore who have a Demat account. A Demat account is mandatory for people who trade in the stock market in India.

The fact that there are twice as many people using social networking sites and only half the number trading stocks is considered to be an incredible finding, especially when one considers that the networking sites have become popular only in the past three years or so. This leads the company to tentatively conclude that the average, Indians are still wary of the stock market. This is seen as a clear indication that though the consumer market in India has grown to huge proportions, India as an investor is still in infant stages.

Another allied area that had interesting statistics is the mobile phone arena. There are almost 2 crore new mobile connections taken in a single month, compared to two lakh Demat accounts taken – another clear indication of the fact that the investing trend is a very low one in India. Factors that are considered responsible for the huge popularity of social networking is are that 60% of India’s population is below the 30 years mark – almost all of whom will definitely link to social networking sites and mobile phones. Also, there is the unbeatable advantage that being part of a social networking site happens absolutely free of cost, whereas taking a Demat account means that the user will have to pay for it.

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