Ashok K.JhaInvest In Equities If Want To Grow Rich !
November 30th 2007 13:37
Financial health of the country affects all of us
ometimes directly ;sometimes indirectly.Those who have invested in equities or mutual funds are rewarded significantly when the stock market is on the roll and the very same investors bear the brunt when the market becomes bearish.All parameters suggest that India's growth momentum will be intact for the coming several years and that will manifest itself through the booming stock market.
American Treasury Department in the meantime reduced the interest rate by half-point and indicated that under no circumstances the liquidity in the market would be allowed to dry up.Welcoming the measures, major stock exchanges of Europe bounced back significantly.Asian market also bounced back.
These economic nitty-gritties are understood best by educated investors but hundreds and thousands of small investors living across the big and small towns, and in some cases villages also, are invariably caught into the complex web of bulls and bears.Most of them are badly hit and run away, never to return again.Although,no one can time the market but this class of people make horrible decisions of entering the market at its peak and exit as soon as it starts going down.Their exposure to Mutual Fund is almost negligible and they mostly follow the advise of the Trading Terminal Owner.There are also many self-styled stock guru's who have popped up everywhere and advise "best pick" to their clients after charging their fee.These experts mostly advise their clients to buy stocks which are obscure but jump up or down crazily.In the bull run one keeps doubling the investment every week but the moment market becomes bearish,those very stocks become illiquid and the investor is stuck with that.That's why timing to exit the market is as important as timing to enter it.Disciplined approach is the most important and how through that approach ordinary rural folks of Gujrat have been minting money is a topic of case study for investing lessons.
Almost every village of any sizable population in Gujrat state of India has a trading terminal,mostly connected to the National Stock Exchange.Villagers are not highly literate but due to their disciplined investment approach,most of them has grown rich.This phenomena has failed to spread other states.Trading terminals have reached every nook and corner of India but the disciplined investing approach have not spread elsewhere.
The perception about investment in Stock Market is still very negative among lower-middle class.Many consider this akin to gambling and surprisingly,many well- read person also subscribe to this view.Thus the thousands of crores made on stock exchanges are not distributed far and wide.A very small percentage of people are getting benefited from it and becoming obscenely rich.They in turn invest some part of that money into reality sector ,propelling that to stratosphere.
Everybody agrees that Indian Economy is on growth curve and that will be reflected through the Stock Market.Sceptics will miss the bus for being perennial sceptics and the market will be touching newer heights again and again.This is time to reap the benefits.Don't remain prejudiced.A sound investment in the market might bring more than expected return.Be positive and start investing steadily and slowly....
ometimes directly ;sometimes indirectly.Those who have invested in equities or mutual funds are rewarded significantly when the stock market is on the roll and the very same investors bear the brunt when the market becomes bearish.All parameters suggest that India's growth momentum will be intact for the coming several years and that will manifest itself through the booming stock market. American Treasury Department in the meantime reduced the interest rate by half-point and indicated that under no circumstances the liquidity in the market would be allowed to dry up.Welcoming the measures, major stock exchanges of Europe bounced back significantly.Asian market also bounced back.
These economic nitty-gritties are understood best by educated investors but hundreds and thousands of small investors living across the big and small towns, and in some cases villages also, are invariably caught into the complex web of bulls and bears.Most of them are badly hit and run away, never to return again.Although,no one can time the market but this class of people make horrible decisions of entering the market at its peak and exit as soon as it starts going down.Their exposure to Mutual Fund is almost negligible and they mostly follow the advise of the Trading Terminal Owner.There are also many self-styled stock guru's who have popped up everywhere and advise "best pick" to their clients after charging their fee.These experts mostly advise their clients to buy stocks which are obscure but jump up or down crazily.In the bull run one keeps doubling the investment every week but the moment market becomes bearish,those very stocks become illiquid and the investor is stuck with that.That's why timing to exit the market is as important as timing to enter it.Disciplined approach is the most important and how through that approach ordinary rural folks of Gujrat have been minting money is a topic of case study for investing lessons.
Almost every village of any sizable population in Gujrat state of India has a trading terminal,mostly connected to the National Stock Exchange.Villagers are not highly literate but due to their disciplined investment approach,most of them has grown rich.This phenomena has failed to spread other states.Trading terminals have reached every nook and corner of India but the disciplined investing approach have not spread elsewhere.
The perception about investment in Stock Market is still very negative among lower-middle class.Many consider this akin to gambling and surprisingly,many well- read person also subscribe to this view.Thus the thousands of crores made on stock exchanges are not distributed far and wide.A very small percentage of people are getting benefited from it and becoming obscenely rich.They in turn invest some part of that money into reality sector ,propelling that to stratosphere.
Everybody agrees that Indian Economy is on growth curve and that will be reflected through the Stock Market.Sceptics will miss the bus for being perennial sceptics and the market will be touching newer heights again and again.This is time to reap the benefits.Don't remain prejudiced.A sound investment in the market might bring more than expected return.Be positive and start investing steadily and slowly....
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