Have you ever wondered how people accumulate large sums of money in their lifetime to live the life you dream off? Do you ever analyse the returns on your investment and whether they will be sufficient till the time you retire from your job? Are you investing your money in bank deposits, savings certificate and bonds? If you have not thought about all this; this article is exclusively for you.
Most people invest their money with bank thinking that their money will stay safe. It’s a common tendency among people to avoid investing in places like share markets and mutual funds. History has witnessed that nobody has grown enormously by investing in bank deposits. All the people who earn ten times their investment are the people who invest in the capital markets.
Capital market is the gateway to make your dreams come true. It facilitates trade of stocks and securities on a platform known as the stock exchange. It is named so because stocks are exchanged or traded on this platform.
If we talk about the nation stock exchange of India, we can see that it has seen a great jump from where it was 20 years ago. If you would have invested Rs. 1 lakh twenty years ago in the right stocks or mutual funds, the current valuation of your investment would be Rs. 44 Lakh. Imagine such a return anywhere outside the stock market. There is none. Nobody can provide you this rate of return as provided by the capital markets.
We earn throughout our lives with the hope that we will enjoy our life after retirement. But the truth is that if we keep investing our money like we do now, we will not have enough money to live our lives the way we want.
There are apprehensions; people are scared to enter the market. They have a risk of losing. But, what they don’t know is that with careful investment,your money can get multi-fold, returns like you have never seen before. All that is required is patience and confidence. If you are a lay man and know nothing about investment, even then you can invest and earn money.
People with limited knowledge of the stock market can opt for brokers who can give you advice for long term gains. You can compare brokers and open an account with the one that suits you. Once you have finalised your brokerage firm from where you will trade, you are ready to enter the market of unlimited opportunities. You should always make long term investment as they are safer compared to the short-term investments.
While making the investment one thing that you should avoid is greed and the other that you need to practise if patience and discipline. When people suddenly see so much money flowing in, they become greedy and that is where they make the mistake. Always be disciplined about you trades and have patience to let your trade mature and only reap it when it’s ripe.