Usually
people use to say that when someone buys a product the neighbor’s in that
surroundings will naturally buy the same one, the growth of television in many
homes can be attributed to that, gradually consumerism has started which
resulted in growth of many such products. Bikes, Phones, mobile phones,
computer, Refrigerator, Washing machines, real estate etc all have developed
because of the growth in consumerism which has been ditched upon the common
people.
Everything
has developed, consumer goods companies, real estate owners, sellers of these
consumer goods, bank’s too as they had started offering EMI schemes, housing
finance companies, the only thing which had deteriorated among the so called
consumers or common people in the last 20 years is the habit of savings and the
only thing which had mostly never attracted is INVESTING.
We always go by the review in google nowadays
and sometime occasionally by our friend’s words, how many of us have really
benefitted from discussing on the topic of investing and investing in equities
in particular. Even if we had discussed, we will forgot the next day on this as
month end EMI will become a monster to think about investing. Mutual fund is
one such example was people were not thought about the power of money
compounding and about becoming rich.
What is Equity?
Equities are the biggest wealth
creator, more than a real estate, gold or any other way we have known, but the
sad part is most of the Indian’s aren’t aware of it or doesn’t want to know
about it. There is always thinking that when the returns are high the risk will
also be high, absolutely perfect, have you ever thought of how to minimize the
risk to get that return.
Buying a
share is risk as you may end up on the losing side, but thru mutual funds the
risk is minimized to a great extent, Mutual fund not only invest in equities
but also in government bonds, treasury bills, corporate deposits etc.
On a
simple note, earlier people will get money from the banks or village’s biggie
to start his own business; modern day business man had found a new way to earn
and give it back to the society in the name of stocks, shares, equities you can
call it in any name. The only challenge is many had found a way to cheat the
investors or people while doing share trading which had forced many to go away
from the stock market.
The best
way for a nomad investor is to go with mutual funds and take equity way to make
a huge corpus under his kitty.
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