You can be among the 87% of Indians who are losing out on opportunities that could change their lives! Learn why it's a big mistake to stay out of the stock market.
The entire story of Indian stock markets is rather distorted. Many investors are forced to avoid stocks, even if only a small percentage chose them to accumulate long-term wealth.Approximately 87% of Indians never invest in equities or mutual funds. The absurd thing is that 25% of these individuals are able to take some risks without getting hurt. This demonstrates a general mistrust of equities, which frequently causes people to turn to alternatives like endowment plans, fixed deposits (FDs), or just leaving their money in savings accounts.
Why? The answer is straightforward: fear. Making mistakes, losing money, and not knowing where to begin are all major fears. In actuality, though, staying away from the stock market can be more detrimental than beneficial. Therefore, it's time to discover a solution if you've been putting off stock trading due to uncertainty or anxiety.
What You're Losing Out on by Not Buying Stocks
You could believe that investing in the stock market is "safer" than choosing an FD, an endowment plan, or even leaving your money in a bank savings account. However, in practice, these "safe" substitutes can end up costing you money.
This is due to the fact that typical investments such as FDs and endowment plans only yield returns of 4–6% annually.
Let's say you spend ₹5 lakh in one of these programs for a period of 10 years. Your ₹5 lakh would have increased to ₹7.6 lakh in ten years. Not bad, isn't it? However, the true worth of the investment will be as low as ₹4.1 lakh if you take inflation into account, which reduces your earnings annually. In conclusion, inflation would have cost you ₹90,000 on your 5 lakh investment.
However, you could have made ₹18.5 lakh if you had spent your ₹5 lakh in stocks (equities) over the same ten years. Additionally, you would have earned 10 lakh after accounting for inflation.
This demonstrates that stocks have the capacity to generate actual wealth, particularly over extended periods of time. The issue,is that the majority of stockholders don't keep their investments long enough to witness these returns.
The Reasons Why Most Indians Don't Make Long-Term Stock Investments
Less than five years is how long 97% of investors keep their investments. It is nearly hard to outperform the market with this short-term strategy. Another significant issue is that 68% of investors sell their equities in a panic when the market declines.
Why do so many Indians still steer clear of stocks, especially when considering the long term, since they are such a wonderful way to increase wealth?
They Are Unable to Choose Wise Stocks
Not knowing how to choose quality stocks is one of the main reasons individuals stay away from the stock market.Selecting the best company can seem like an intimidating undertaking because there are over 5,000 listed on the Indian stock exchanges. "How do I pick the best stock out of so many?" is a question you may have.
It makes sense. It's simple to become overwhelmed by the abundance of information available. Many people find it difficult to decide and invest with confidence because of this overload.
Furthermore, people frequently lack the skills necessary to separate important information from irrelevant data. Some people naively believe news reports, professional judgments, or social media advice. The problem is that not all stocks are beneficial.
The Finology Research Desk's findings indicate:
Over 80 percent of big-cap stocks are not wise investments.
Just sixteen percent of stocks regularly beat the Nifty and provide an 18% better return on equity (ROE) than volatile stocks.
Therefore, it is imperative to get assistance from reputable and authorized stock research firms. In the long term, a subscription to a reputable research firm can pay you.
More than 5 lakh Indians have benefited from the assistance of registered stock research company Finology in making wise stock investments. Finology 30, its flagship basket of 30 long-term stocks chosen and monitored by analysts at its research desk all year long, was just introduced.
It can be very beneficial to have expert analysts choose and monitor equities for you, particularly if you work in other fields.
They're Too Busy to Monitor Stocks
You might not have the time or energy to watch your stocks and choose new stocks on a regular basis, even if you are successful in choosing a stock and making an investment. It's simple to forget about your money, particularly in a tumultuous stock market. You risk missing significant market developments or updates that could have an impact on your portfolio if you don't regularly monitor it.
As of FY23, India has 401 portfolio managers, 855 research analysts, and 1,312 investment advisors.That equates to roughly 2,568 experts who are capable of conducting daily stock research. However, because they work in different fields, crores of Indians like to invest in stocks but lack the time.
The majority of other people don't have much time in their hectic schedules to monitor the performance of their investments. The issue with this is that you can pass up chances to buy or sell stocks at the ideal moment if you don't check in. You risk losing money or missing out on gains if you hang onto a stock that is truly a falling knife.
Their goal is to earn quick cash.
Humans have an innate desire to get money fast. And because of this, the stock market appears to be a treasure trove.However, despite the fact that stocks might be a very profitable venture, this is not always the case. Many people follow social media advice or pay attention to stock "gurus" who guarantee quick returns because they want to get wealthy soon. And you know what? In fact, one in four Indians rely on social media to promote stocks! It can be risky to play this game.
In an attempt to generate quick cash, many people fall victim to frauds or manipulations. They could lose a lot of money if they invest in "hot" stocks at the wrong moment. Even worse, during market downturns, they may panic and sell their investments, resulting in even worse losses. This practice is known as panic selling.and it's among the most common errors made by investors.
The major money ultimately comes from long-term investments rather than short-term gains. Thus, you will probably lose money in the long run if you are always searching for the next "get-rich-quick thing."
The Fix
Do you not believe that the aforementioned reasons—fear, confusion, or lack of time—are the reasons you have been avoiding stocks?
It's time to modify your attitude, though. You can make money by investing in the stock market. How? You wouldn't believe how simple and easy the solution is.
Neither time nor experience are necessary for stock investing. With a carefully chosen selection of equities aimed at long-term growth, you can get started with confidence.Finology 30 can help with it.
Following a multi-level screening process, the Finology Research Desk's analysts selected 30 equities for the Finology 30 list. These stocks were chosen with care to increase your wealth over time. What you get with it is this:
One stock every twelve days:
Building a broad portfolio is made simple by receiving a new recommendation every 12 days rather than having to guess which stock to choose.
Maximum purchase price:
You will receive comprehensive reports outlining the reasons why each stock is a wise investment, along with precise information on when to purchase each one.
Frequent updates:
To keep you informed, analysts monitor these stocks for you and provide you with critical information.
Risk-averse approach:
These equities are the result of a long-term, risk-averse strategy. Therefore, you don't need to be concerned about rash choices or selling at the incorrect moment.
You get 30 quality stocks with Finology 30 that are chosen to increase your wealth over time. Knowing that your stocks are being monitored by analysts who are passionate about their work gives you the confidence to invest.
The Bottom Line
In the end, staying out of the stock market means losing out on one of the best opportunities to accumulate money. Even while obstacles like ignorance, time restraints, and market volatility exist, they can be surmounted with the correct resources and direction.
To assist you in navigating the intricacies of stock investment, Finology 30 provides a useful, empirically supported answer.It enables you to make wise decisions and reach your financial objectives by streamlining the stock selection process, offering frequent information, and encouraging a methodical, long-term approach.
Therefore, don't let misinformation or fear stop you. Start investing now for your objectives by subscribing to Finology 30.
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