India's Biggest Minority - Stock Investors

Dec 15, 2016 | 06:19 PM IST

A new success story is written in the Indian stock market every day. It's a fertile ground which provides investors with a platform to multiply their capital manifolds. Despite it being a cash-cow, for ages, it has been sadly overlooked by the majority of the population.

Investing in the stock market is not a gamble or any illicit money making racket. Yet it is often equated with these means. On the contrary, it's a legitimate, government approved and monitored platform where patience and diligence is duly rewarded.

Are YOU part of this grand success story?

98% percent of our enormous 1.25 billion population will answer the above question in negative. This is extremely unfortunate, as India is steadily heading on the path of development while the majority of Indians are surprisingly apathetic towards participating in its success and growth. It's hampering us on two major fronts.

a) Boost To Economy

Investing a part of household savings in the stock market will pump enormous capital in the market which will help the economy grow. However, the majority of Indians opt for unproductive means of investment like gold and real estate which don't push the envelope of our economy in any way. The only silver lining is that now people have started investing in mutual funds which eventually divert your funds to the equity market. Based on expert analysis, equity investment (Individual investment) fares way better than all the other means of investment i.e. mutual funds, PPF, gold, real estate, etc.

b) Potential Investors Missing The Party

Stock investment has the potential to change your fortunes if you play your cards right. However, as only 2% of the population engage in this, 98% of the population misses out on all the goodies dished out by the stock market and India Inc. They missed the party, but you can ensure that you DON'T miss it.

Thing We Should Do

Let's focus on the investment habits of developed countries. The Chinese stock investors' base is 10% while in U.S it goes as high as 18%. Just to remind you that the population of the U.S is not even quarter of that of our country or China. So first things first, we have to make the general populace in India aware of stock market investment. As SEBI has undertaken various awareness drives, let's hope equity investment will have a wider reach in future than what it has at present.

The Ideal Approach

The reason most of the people stay away from stock market has to be largely attributed to two things – i. The prevalent myths of stock market and ii. The exasperatingly complex procedure of stock investment. The ideal thing for a newbie is to get assistance from those who have experience in the stock market. It can be a friend, relative or a stock advisory firm. Just ensure you get ample amount of hand-holding in the initial phase as stock investment requires a great deal of care and diligence.

Ideally, a stock advisory firm can do wonders to your stock investment as it takes into account all your needs and chalks out an investment plan which best suits your requirements. So start investing today, as sometimes it's good to be a part of a minority.

 

ABOUT AUTHOR

Niveza Editorial Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to pave a smooth road for our clients in the shaky world of stock market. While...
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