Wednesday, March 14, 2012

Why Don't You Invest in the Stock Market? | Safal Niveshak

The obvious question I may ask you is ? ?Why do you invest in the stock market??

Is it to fund your child?s higher education? Your dream home? Your retirement?

But there?s a related question that I have for millions of other Indians across the country (and you might be one of them) ? ?Why don?t you invest in the stock market??

As per the SEBI, less than 5% of Indian households own stocks or related investments. That leaves 95% that do not.

Part of this is due to a lack of wealth. A large majority of Indian households simply don?t have any money to invest.

On the other side of the spectrum, those who have a lot of money ? the wealthiest ? they may avoid stocks because ownership in private businesses offers better opportunities.

But what counts for the remaining Indian households ? largely the middle class ? that has stayed away from the stock market in the past, and have enough excuses to do so now as well.

The excuse that stock market does not provide good returns isn?t valid.

Around 30 years of data available for the Indian stock market makes one point clear: Over the long haul, the stock market has been a great place to grow your wealth, with returns averaging around 18% per annum over a 30 year period.

That?s far better than returns from bonds, cash, and real estate.

Stocks win over the long haul, and yet a large number of middle-class Indians avoid them.

So the answer to the question ? Why don?t you invest in the stock market? ? is hard for me to know.

But the answer lies within you ? the investor.

You tell me ? Why don?t you invest in the stock market?

  • Is it because your stock market returns have been miserable in the past?
  • Do you have the fear of being cheated by financial advisors and/or companies going bankrupt?
  • Do you hate the stock market volatility?

You see, we Indians don?t have the luxury of a social security net, so we are fully responsible for financing our own retirements (and other financial goals).

For most of us, thus, the only way to get there is by having a good exposure to stocks over many years.

So, if you are shunning stocks now for any of the above or other reasons, will you eventually change your mind and invest in the stock market?

What makes you not invest in the stock market?

Let me know in the Comments section below so that we can start a discussion around this very important topic that concerns your financial future.

Source: http://www.safalniveshak.com/reasons-for-not-investing-in-stock-market/

amar e stoudemire m.i.a. stoudemire adrianne curry blake shelton adam levine hoekstra

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