Take home points. India is surprisingly fastest growing large economy in the world. Experts have predicted great growth in the next 10/20 years. Equity is the way to go. Stock market/economy grows forever but businesses don't as you said.
Which IPO is worth buying?
- Thread starter John4321
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And it could all come tumbling down too and there is no worse time for that to happen than when you need the money. Like the case of my friend who lost several lac's. A few bad bets are enough to lose a fair chunk of your life's savings. Either diversify or be ready to take that blow. I have seen way too many people take that hit by investing in equity alone. There are also people who committed suicides when their equity investments got razed to nothingness and their addiction towards equity investment has left them in massive debt.
All said and done, Maxing out an instrument like PPF to its limit of 1.5 lac is not hard for someone who has the risk appetite for equity
All said and done, Maxing out an instrument like PPF to its limit of 1.5 lac is not hard for someone who has the risk appetite for equity
Emperor
Skilled
If any one think too much about RISK.. than you just can't do anything.
Share Market/IPO/FUND anything are NEVER GOOD & SAFE in any Corner of the WORLD if you buy/sell just on others tip and didn't SEARCH-RESEARCH/EVALUATE Company Balance sheet & it's working systematically.
While Buying/Selling shares etc. do not carried away for BIG PROFIT.. be happy in low profit and you will never loss ANY WHERE/ANY FIELD.
if you are new to these financial instruments than just invest small amount that if your decision went wrong and you loss that money it didn't hamper your financial + mental health.
Share Market/IPO/FUND anything are NEVER GOOD & SAFE in any Corner of the WORLD if you buy/sell just on others tip and didn't SEARCH-RESEARCH/EVALUATE Company Balance sheet & it's working systematically.
While Buying/Selling shares etc. do not carried away for BIG PROFIT.. be happy in low profit and you will never loss ANY WHERE/ANY FIELD.
if you are new to these financial instruments than just invest small amount that if your decision went wrong and you loss that money it didn't hamper your financial + mental health.
People losing money from equities and/or MFs is a well worn story. It has elements of both truth and false within.
False because many people say they "invest" but they actually just "speculate", especially on prices. They simply go by news and "hot potato" theory. They hear story of a stock, or bitcoin or whatever instrument and buy it because "it is going high". And if there is slight increase they think they pat their back and find another hot stock. And then greater fool theory kicks-in. If there is no greater fool than them then they are left with a real hot potato stock.
The only way out for people is to educate themselves with how finances are managed - individually or company wise and then go from there. As for the easy way? While just selecting Morningstar's 5 Star rated funds should suffice there is another story behind it. And this bring us to the true part of the story....
Fund returns are always absolute and hypothetical. What this means is that while a fund might show 20% growth over 15 yrs, the returns are never real. Because there is a well known phenomena in funds business - People add money when times are booming and take out when there is a slump. So, there is literally no one who actually gets the same rate of return as the fund. And the reason is same, there is no conviction and most people select funds because someone told them it was good.
I guess what I am driving at is this - One, Learning about finance is a life skill, everyone should make an effort. Second, if people cannot put in time, then they should not chase hot tips and stick to FD/bonds/PPF - These instruments will preserve capital and they will have their money even in times of need. But, they also need to look around and see - No one got rich from putting money in bonds.
False because many people say they "invest" but they actually just "speculate", especially on prices. They simply go by news and "hot potato" theory. They hear story of a stock, or bitcoin or whatever instrument and buy it because "it is going high". And if there is slight increase they think they pat their back and find another hot stock. And then greater fool theory kicks-in. If there is no greater fool than them then they are left with a real hot potato stock.
The only way out for people is to educate themselves with how finances are managed - individually or company wise and then go from there. As for the easy way? While just selecting Morningstar's 5 Star rated funds should suffice there is another story behind it. And this bring us to the true part of the story....
Fund returns are always absolute and hypothetical. What this means is that while a fund might show 20% growth over 15 yrs, the returns are never real. Because there is a well known phenomena in funds business - People add money when times are booming and take out when there is a slump. So, there is literally no one who actually gets the same rate of return as the fund. And the reason is same, there is no conviction and most people select funds because someone told them it was good.
I guess what I am driving at is this - One, Learning about finance is a life skill, everyone should make an effort. Second, if people cannot put in time, then they should not chase hot tips and stick to FD/bonds/PPF - These instruments will preserve capital and they will have their money even in times of need. But, they also need to look around and see - No one got rich from putting money in bonds.
You nailed it. It is very sensitive topic as some naive folks with get rich quick mindset invest in popular funds and expect miracles to happen in 2/3 years. Never happens or is very rare. They see their investment in negative (temporarily) and withdraw at loss then tell 10 others. Fun fact: only 2% investors remain invested for more than 10 years and the real magic of compounding happens after a decade... so...
PS: Life skill yes. I learned about it in Oct 17 and since then my habits have changed.
