General believe lies among several goes saying Stock Market is very unstable, turbulent, uncertain, gamble and nobody likes taking risks in terms of hard earned money. But the truth lies in fact It has given Extraordinary returns to discipline Investors who understood the power of compounding at Early age and shown good character in investing even in extra ordinary circumstances and shown patience perseverance and has mastered the Art of Regular Investing. In the words of Warren Buffet, You can’t produce a baby in one month by getting nine women pregnant.” Patience is the Key.
We have witnessed Indian Stock Market Long Run Bullish Trends and Amplitude of Potential Growth of Indian economy over last few decades. The future India is on the wheels of Growth and has tremendous potential to outperform identification of this current time and investing in right companies will play a crucial role for earning opportunities lying ahead.
Two General rules for investment as per Warren Buffet :
- “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
- All about investing is picking good stocks at good times and staying with them as long as they remain good companies.
Mutual Fund or Shares? Which one is best to invest?
Answer goes by highlighting the drawbacks of Mutual fund investments. Drawbacks of mutual fund investments:
- Fund Manager has tremendous pressure to perform and provide positive returns to investors.
- Fund Manager has to play safe and invest the fund money in Selected and safe company’s shares only.
- Fund Manager do not have the freedom to invest in Risky stocks to earn High Return as huge public trust is at stake.
- Fund Manager has no control over entry and exit. He cannot wait for the Market to Raise or Fall. Means he has to compulsorily invest and withdraw fund amount received and redeemed into shares on every month.
- Fund Manager has control to meet the management of the big companies where investment is made which itself sometimes backfires as Management acts as Sales Agent forcing the Mutual Fund companies to invest in their shares.
- Fund Managers are bound by SEBI Regulations they have to compulsorily invest specified percentage in small cap, midcap, multicap and large cap companies.
Benefit of Direct investment in Share Market by retail investors:
- High possibility of earning good returns on Quality companies with good fundamentals and technical
- High possibility of good returns if stayed invested for long period of time.
- Entry or Exit is under control of investors.
- No percentage binding regulations of SEBI. Can invest in any shares of good companies like small cap, mid cap, large cap.
- Can wait for market to correct or consolidate and shape the investment timings.
- Can Enjoy the power of compounding by discipline investment for a long period of time.
- Money multiplication can happen fourfold during long term investment horizon.
INDIA vs. USA:
Facts of Indian Stock Market and Potential of Earnings. : Share Percentage of adults investing money in the stock market in the United States has surpassed 55% way back in 1999-2000 as per the Statista Research Report 2020. The “stock market” can be defined as a group of stock exchanges, where investors can buy shares in a publicly traded company. An increasing number of Americans are using an online investing service, making stock trading more accessible to internet-savvy investors. Returns in the stock market can be high, if the investor chooses the correct stocks and Stay invested for a Long Period of time.
Disclaimer: The above article is just for information and knowledge sharing and does not in any way advice to invest in share market. Do contact your professional advisor before investing in share market as share market is subject to market risk.