‘Beware, never do it’: Veteran investor Shankar Sharma says the stock market is not for ordinary people, returns aren’t even better than FDs.
‘Beware, never do it’: Veteran investor Shankar Sharma says the stock market is not for ordinary people, returns aren’t even better than FDs.
For decades, millions of Indians have been told that the stock market is the best way to make money in the long run. But veteran investor and market commentator Shankar Sharma has a completely different message: retail investors should stay away from equities altogether.
In a recent interview with a TV channel, Sharma made a shocking claim that contradicts common investing wisdom. According to him, equity markets are for “big people and professionals,” not ordinary retail investors.
Sharma said, “I believe equity markets are for big people and professionals. They are not for ordinary people because the data doesn’t support equity investing for retail investors.”
The veteran investor argued that even if an investor earns 10-12% annual returns from stocks, taxes and market fluctuations significantly reduce the actual gains. He said that once capital gains tax is deducted, returns are even lower. Adjusting for the higher volatility associated with equities, Sharma believes the risk-reward equation becomes meaningless.
He compared stock investing to fixed deposits, which he says offer something many investors underestimate—peace of mind.
Sharma said, “You can’t even beat fixed deposits on a risk-adjusted basis,” noting that bank deposits offer both returns on capital and returns on equity, while equities expose investors to uncertainty and market fluctuations.
What makes Sharma’s stance even more strange is that he claims to have followed it consistently for more than three decades.
He said, “I’ve believed this for 35 years.” “All my relatives and friends have harassed me for decades, and I’ve told them, ‘Khabardar, kabhi bhi mat karna equity me kabhi’ (Beware, never invest in equities).”
The investor also shared a personal anecdote involving his sister. While planning a family holiday in Bali, she reportedly complained that he never shared stock market tips.
Sharma recalled that he told her, “If you want to remain my sister, don’t ask for stock market tips.”
His logic was simple: by the time a stock tip reaches ordinary investors, the opportunity is often gone.
However, not everyone agreed with Sharma.
Many social media users disputed the veteran investor’s point, sharing their own experiences of earning better returns from the stock market than traditional fixed deposits.
Shankar Sharma on retail investors:
“Equity markets are meant for big boys and professionals, they’re not meant for Mr. Joe on the street (retail investors).”
“Best you can make 10-12%, those days are also in the hindsight. Add taxes on that and you cannot even beat FD… pic.twitter.com/Z5DAyK68Fz
One user wrote, “Mr. Shankar, you’re wrong. I’m in the 30% income-tax bracket. On FDs, I earned a post-tax return of around 4.5%. I invested in the direct plan of ICICI Balanced Advantage Fund and, despite weak returns in the last two years, earned a post-tax CAGR of around 10% over the last five years. I’m happy as a retail investor.” Another pointed to the experience of U.S. investors, saying, “Retail share in the U.S. stock market is around 62%, and the Nasdaq has delivered a CAGR of around 15% over the long term. So, his statements should be a bit skeptical.”
This debate comes at a time when Indian equities are struggling to deliver good returns. According to a report in the Economic Times, benchmark indices have fluctuated significantly over the past two years. The Nifty was down more than 5% in FY26, while the Sensex fell nearly 7% to hover around the 72,000 mark.
This lackluster performance is particularly surprising given that just two years ago, market sentiment was very bullish. The Sensex touched 85,000 twice, and there was widespread speculation that the benchmark index could soon cross the 100,000 mark. Instead, investors faced a prolonged correction, lending some support to Sharma’s cautious stance on equity investing.
‘Beware, never do it’: Veteran investor Shankar Sharma says the stock market is not for ordinary people, returns aren’t even better than FDs.
For decades, millions of Indians have been told that the stock market is the best way to make money in the long run. But veteran investor and market commentator Shankar Sharma has a completely different message: retail investors should stay away from equities altogether.
In a recent interview with a TV channel, Sharma made a shocking claim that contradicts common investing wisdom. According to him, equity markets are for “big people and professionals,” not ordinary retail investors.
Sharma said, “I believe equity markets are for big people and professionals. They are not for ordinary people because the data doesn’t support equity investing for retail investors.”
The veteran investor argued that even if an investor earns 10-12% annual returns from stocks, taxes and market fluctuations significantly reduce the actual gains. He said that once capital gains tax is deducted, returns are even lower. Adjusting for the higher volatility associated with equities, Sharma believes the risk-reward equation becomes meaningless.
He compared stock investing to fixed deposits, which he says offer something many investors underestimate—peace of mind.
Sharma said, “You can’t even beat fixed deposits on a risk-adjusted basis,” noting that bank deposits offer both returns on capital and returns on equity, while equities expose investors to uncertainty and market fluctuations.
What makes Sharma’s stance even more strange is that he claims to have followed it consistently for more than three decades.
He said, “I’ve believed this for 35 years.” “All my relatives and friends have harassed me for decades, and I’ve told them, ‘Khabardar, kabhi bhi mat karna equity me kabhi’ (Beware, never invest in equities).”
The investor also shared a personal anecdote involving his sister. While planning a family holiday in Bali, she reportedly complained that he never shared stock market tips.
Sharma recalled that he told her, “If you want to remain my sister, don’t ask for stock market tips.”
His logic was simple: by the time a stock tip reaches ordinary investors, the opportunity is often gone.
However, not everyone agreed with Sharma.
Many social media users disputed the veteran investor’s point, sharing their own experiences of earning better returns from the stock market than traditional fixed deposits.
One user wrote, “Mr. Shankar, you’re wrong. I’m in the 30% income-tax bracket. On FDs, I earned a post-tax return of around 4.5%. I invested in the direct plan of ICICI Balanced Advantage Fund and, despite weak returns in the last two years, earned a post-tax CAGR of around 10% over the last five years. I’m happy as a retail investor.” Another pointed to the experience of U.S. investors, saying, “Retail share in the U.S. stock market is around 62%, and the Nasdaq has delivered a CAGR of around 15% over the long term. So, his statements should be a bit skeptical.”
This debate comes at a time when Indian equities are struggling to deliver good returns. According to a report in the Economic Times, benchmark indices have fluctuated significantly over the past two years. The Nifty was down more than 5% in FY26, while the Sensex fell nearly 7% to hover around the 72,000 mark.
This lackluster performance is particularly surprising given that just two years ago, market sentiment was very bullish. The Sensex touched 85,000 twice, and there was widespread speculation that the benchmark index could soon cross the 100,000 mark. Instead, investors faced a prolonged correction, lending some support to Sharma’s cautious stance on equity investing.