Imagine creating enough assets and investments to enable you to retire from the rat race of the stressful world at the age of 40!!!! imagine spending the rest of your life on your own leisurely terms…traveling around the globe, reading your famous suspense thriller, playing with your kids, helping the underprivileged, setting up a farm house in a river valley……….
Let us now briefly look at comparative Return on Investment (ROI) figures before entering the world of ‘New age investment options’… Had you invested a lakh of rupees buying Gold in 2000, by 2005 its value would have been 1.6 Lakhs (61% ROI), the same in a regular savings account in a bank would have fetched you 1.4 Lakhs (@ 7 % p.a, 40% ROI) on the other hand a top performing mutual fund would have fetched you a whopping 6.4 Lakhs (@ 45% annualized returns 600% ROI)!!!!!! Careful and intelligent long term investment in equity would also have grossed you figures close to that of mutual funds’.
For example an investor who put in Rs 1,000 to buy 100 shares of Reliance Industries Ltd (RIL) in 1977 is sitting on a coooool Rs 3,40,000 today as he has over 500 shares through subsequent bonuses in addition, the investor will also have received Rs 40,000 by way of dividends over this 25-year period. Thus, on an original investment of Rs 1,000, he would have earned compounded annual returns of about 25 per cent !!!
Slightly less than 2% of Indians invest their money in stocks and related areas… but what is surprising is that most of these people are the super rich and elite class…. Analysis by experts on Indian wealth management, shows that India's ‘Nouveau Riche’ invest approximately 50% of their money in India's stock market, 30% in real estate!!! Now.. isn’t this a hint to the middle class who are struggling to achieve financial security???
Rich are Rich and remain Rich because of the simple fact that they know where exactly to invest so as to get the best mileage out of hard earned money!! “Rich don’t work for money – they make money work for them.” Robert T. Kiyosaki
With over 20 million shareholders, India has the third largest investor base in the world after the USA and Japan. Over 9,000 companies are listed on the stock exchanges, which are serviced by approximately 7,500 stockbrokers. The Indian capital market is significant in terms of the degree of development, volume of trading and its tremendous growth potential. India's market capitalization is amongst the highest among the emerging markets.
Most of us think Trading is a game of Probability or its a Gamble.But its NOT. It is a specialization whick takes into account & deciphers hundreds of factors which influence stock price & movement. Trading without basic knowledge of technical analysis, functioning of stock markets, macro economy etc. is like trying to solve a complex equation without knowing how to add & subtract numbers ! However if you dont have the time or zeal to start learning the essentials but still want to trade, opt for expert advice & subscribe to trading calls of leading technical analysts or just follow the advice of your online broker blindly (by blindly i mean buy only if you get at the recommended price & place the STOP LOSS at the recommended level & strictly exit when asked to ! ) In short leave things to someone who knows much much better than you do !
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