In India, only 2% of the total population invest in the stock market, but in the USA about 50% of people invest in the stock market. When we come to know the term share market question arises, why should we invest in the share market? If we see in India inflation rate is average increases 5.5% through which the price of products get increased every year which also increases our expenses.we are having a great dream of earning a lot of money so that we can fulfill our dreams of having a luxury car, luxury houses, and other expenses which are not getting to meet with our salary. Most people take loans for their vehicle, home, and others from banks, and they pay for it throughout their whole life and remain as a middle class throughout their entire life. Most of the peoples think that if they saved it and put into banks for the fixed deposit they can beat the market, but averagely banks provide 6-7% return on their money, but it takes a lot of time to increase the capital.
Investing in the stock market as a retail investor or Mutual Fund increases money compound throughout years, and money gets doubles within less time as compared to a Fixed deposit amount or recurring deposit amount in banks. Mainly peoples receive an average return of 15-19% in India through Mutual Fund, and as a retail investor, it depends on stocks to which an investor has chosen; it assumed to get nearly 20-22% return per year. In Mutual Fund people having not any FInancial knowledge invest in it, they give their money to Institutional investors like Reliance Mutual Fund, HDFC Mutual fund, and others; these institutions have a good team with Financial Manager who analyze stocks with Fundamental as well as Management analysis and invest in them. Still, in the case of retail investors, they have to do their investigation and invest in shares.
In this world, everything has pros and cons like that share market also have disadvantages side that it passes through a risk in which if shares get down, there is a chance to lose money.so it takes time to learn and also try to learn from mistakes. Investing requires a lot of patience and manipulating with emotional skills, which comes with time. Not a single investor in this world has never lost his/her money, but they learned from their mistakes and became a great investor.
I think this article has helped you a lot.
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