Diversifying investments

CAPITAL markets offer various investment options tailored to different financial goals and risk profiles, mainly through the debt and equity markets. The debt market provides stable returns with lower risk, making it ideal for conservative investors. In contrast, the equity market offers higher return potential but with greater volatility. Investors can participate in these markets directly through brokerages or banks, or indirectly via mutual funds offering diversification and professional management. Direct investment in Pakistan’s capital markets presents a bleak picture. According to the Pakistan Stock Brokers Association (PSBA), as of December 2024, there were 357,419 Unique Identification Numbers (UINs) registered on the stock market, representing just 0.19 per cent of the country’s adult population. This statistic highlights a significant gap in market participation, especially when compared to countries like India, where over 12pc of adults are actively involved in the stock market.