Who are retail investors? Why do they incur more loss when fiis withdrew money
Retail investors are individual investors who buy and sell securities, such as stocks, bonds, and mutual funds, typically through a brokerage firm or online trading platform. They are not professional investors, but rather individuals seeking to grow their wealth over time.¹ When Foreign Institutional Investors (FIIs) withdraw money from the market, retail investors often incur more losses due to several reasons: - *Liquidity Crisis*: FIIs are significant players in the market, and their withdrawal can lead to a liquidity crisis, making it difficult for retail investors to sell their shares at a fair price. - *Market Volatility*: FIIs' withdrawal can cause market volatility, leading to a sharp decline in stock prices, which can result in significant losses for retail investors. - *Lack of Risk Management*: Retail investors often lack the sophistication and resources to manage risk effectively, making them more vulnerable to market downturns triggered by FIIs' withdrawal. - *Emo...