Wednesday, February 9, 2011

Why Why Why...


Why do we invest in stock market? This is one of the biggest and fundamental questions. And there can be n number of answers to this. Some of us would say its the greed, others would say that its foolish not to take part in the country's growth story.

Confused...!!!

Lets find out all the possible options for somebody to invest in the stock markets. Basically we are talking about individual investors here, so they invest -
  1. to make quick profits
  2. to take part in the growth story of their country
  3. to beat inflation and hedge for future
  4. its among the best investment options available
  5. to create their own future
Yes, you can create your own future by investing in stock market. However, do you know how to invest in such markets?

Probably No...!

Absolutely Not...!!!

Otherwise you would not be reading this unknown blog by someone you don't even know. But, I believe that you want to create your own future and reap higher returns on your investment. So, I'll answer all the above mentioned questions one by one - 
  1. You are absolutely correct, there is no other way to create quick profits
  2. You got it wrong here, you can invest in mutual funds to take part in the growth story with very low risk, thus this is not a place for you
  3. Yes you are right, stock market helps you beat the inflation and hedge against potential risks but its way too risky to invest. so better for you not to enter here
  4. Nope its not one of the best investment options, you can get almost similar returns through mutual funds with almost no risk and efforts
  5. Absolutely Yes, if you want to create your own future, then its the place for you
So, charting your future with stock market is what you want, the I bet you, its tough. Much more difficult than any other investment option because it wants you to work hard. It needs the following from you -
  • discipline and patience
  • efforts to learn technicalities if market
  • to take responsibilities for your actions, hence the risk and the reward
If you are ready then lets start with equity investing 101 in my next post.

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