'Khabardar, kabhi bhi mat karna': Veteran investor Shankar Sharma says stock market isn't for common people, returns don't even beat FD

For decades, millions of Indians have been told that the stock market is the best way to build long-term wealth. 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 startling claim that goes against conventional investing wisdom. According to him, equity markets are "meant for big boys and professionals" and not for ordinary retail investors.

"My view is equity markets are meant for big boys and professionals. They're not meant for Mr. Joe on the street because the data does not support equity investing for the retail investor," Sharma said.


The veteran investor argued that even if an investor manages to earn 10-12% annual returns from stocks, taxes and market volatility significantly reduce the actual benefit. Once capital gains taxes are deducted, returns fall further, he said. When adjusted for the high volatility associated with equities, Sharma believes the risk-reward equation becomes unattractive.

He compared stock investing with fixed deposits, which he says offer something many investors underestimate — peace of mind.

"You cannot on a risk-adjusted basis beat even a fixed deposit," Sharma said, noting that bank deposits provide both return of capital and return on capital, while equities expose investors to uncertainty and market swings.

What makes Sharma's stance even more unusual is that he claims to have followed it consistently for over three decades.

"That's what I've always believed for 35 years," he said. "All my relatives and friends have pestered me over decades, and I've told them, 'Khabardar, kabhi bhi mat karna equity mein kabhi' (Beware, never ever invest in equities)."


The investor even shared a personal anecdote involving his sister. While planning a family holiday to Bali, she reportedly complained that he never shared stock market tips.

Sharma recalled telling her, "If you want to remain my sister, don't ask for stock market tips."

His reasoning was simple: by the time a stock tip reaches ordinary investors, the opportunity is often already gone.

However, not everyone was convinced by Sharma's argument.

Several social media users pushed back against the veteran investor's view, sharing their own experiences of earning better returns from the stock market than from traditional fixed deposits.

"Mr. Shankar, you are not correct. I am in the 30% income-tax bracket. In FDs, I earned a post-tax return of around 4.5%. I invested in the direct plan of ICICI Balanced Advantage Fund and earned a post-tax CAGR of about 10% over the last five years despite the weak returns of the last two years. I am happy as a retail investor," one user wrote.

Another pointed to the experience of U.S. investors, saying, "Retail participation in the U.S. stock market is around 62%, and the Nasdaq has delivered roughly 15% CAGR over the long term. So it's worth taking his views with a pinch of salt."

The debate comes at a time when Indian equities have struggled to generate meaningful returns. According to an Economic Times report, benchmark indices have largely moved sideways over the past two years. The Nifty ended FY26 down more than 5%, while the Sensex slipped around 7% to hover near the 72,000 mark.

The lacklustre performance is particularly striking because market sentiment was extremely bullish just two years ago. The Sensex touched the 85,000 level twice during the period, and there was widespread speculation that the benchmark index could soon breach the 100,000 mark. Instead, investors have had to contend with a prolonged correction, lending some support to Sharma's cautionary stance on equity investing.