1) What is the importance of Investment?
India is a country with a population of around 1.2 billion, second largest population in the world.
How many people among these 1.2 billions actually invest their money?
The shocking truth is only 20 to 25 million people in India actually look up investing as an option for their hard earned money. Why?
- We live in a society where people believe in saving rather than investing.
- Myth related to the share market as prevalent as you may lose your money.
- Stock Market is taken as hedging or gambling of money.
- People are not Financially literate. Financial Literacy is a hurdle that blocks people from investing in the stock market.
- People depend on financial institutions to invest their hard-earned money and instead lose out on their money.
- Fear of investment occupies their mind as they do not want to lose money.
Stock Market in India have earned around $1.4 trillion and so have people investing in stock markets.
You should invest to be financially independent in your life. “Don’t work for money, Money should work for you“
Have you heard about Rakesh Jhunjunwala, Radakishan Damani, Porinju Veliyath?
They are one of the richest people in India through investing in the Stock Market. Rakesh Jhunjunwala is known as the Warren Buffet of India, Radakishan Damani is the owner of D-Mart who started his career first through investment in India and later went through the retail chain of Supermarket Avenue D-Mart.
Homework:- Find out about Porinju Veliyath.
2) Where can you Invest your money?
There are various investment methods that are practiced in India. You can choose any medium based on your risk capability and availability of money.
Fixed Deposit (FD)
The best and easy way for those who have less time and want to play safe in terms of investment. Every household in India would be aware of FD in banks.
Fixed Deposit is better than keeping your money in savings account. You do not need rigorous knowledge on investment to invest in Fixed Deposit. You invest your money with bank for a fixed period of time and later you can withdraw you money after maturity.
The earning potential FD is anywhere between 6-8 percent depending on the bank.
Mutual Funds is any day better than FD. You can earn higher returns in mutual fund as compared to Fixed Deposits. Mutual Funds are financial institution where the fund managers invest your money into diverse portfolio. Before investing your money in Mutual funds, have proper knowledge about investment and all the guidelines provided by mutual funds.
People who do not have time to invest in stock market and want to earn return on their investment can look for this method. They have multiple diverse options to invest their money and earn substantial returns.
With technological advancement you can now invest your money through your comfort zone. Many online options are available where you can look for investing your money in mutual funds are Kuvera, Upwardly, Groww, etc..
The leading sector for making money online through investment in the Stock market also known as the Share market. The money that you invest in either Fixed Deposit or Mutual Funds, is indirectly invested in the Stock market. You are given a fair share of your money and the rest is provided to the financial institution or banks.
Investing in the Stock Market can be a boon if you have done proper financial and technical analysis of the stocks keeping the past trends in the charts. The important part in the stock market is picking up the stocks you want to buy and put your money in those stocks.
Profit is earned when you buy the stocks and not when you sell the stocks.
Without financial literacy, we would request you to stay out of the share market as it is essential to have proper knowledge and guidance of investment in stock markets before investing your money into stock markets.
3) What is the minimum amount required for investment in India?
There is no minimum or maximum money required to start investment in India. You can start by a small amount and later increase the value of your investment. There are shares in the stock market that are traded for 1 rupee or even lesser and as high as more than Rs. 60,000 for one share.
4) Why should you invest in India?
India has remarkably outperformed in its economy and growth. Here are some of the reasons behind Why should you invest in India?
- India is the 4th largest country in purchasing power parity.
- India is the 2nd most populous country that drives the growth of the economy.
- India is a democratic country that encourages Foreign Direct Investment (FDI) and has friendly policies that can easily help foreign investors and Non Residents of India (NRI) to consider it as its investment preference.
- India is a young country where the majority of its population can help the country towards growth and development.
India has a leader Prime Minister Shri. Narendra Modi who can take responsibility, make rules and policies that are favorable for the development and growth of the country.
5) Is investing really worth your time and money?
Investment in India is worth all your time and money that you give to the stock markets of India. Indian Stock markets have earned trillions of amount and had raised funds for the growth and development of the industry. We have global leaders like Mukesh Ambani, Ratan Tata, N. R. Narayana Murthy to name a few of the Indian leaders.
We have shares listed on the stock market with largest the market capitalization and potential to increase the returns of investors within the stipulated time.
We have the richest net worth man named Radhakishan Damani, the 7th richest person in India who made his name through investment in India.
These were a few of the questions on “Investment in India” that are still a doubt in the mind of many people. Question Clubs have tried to help you out with a few of these questions. If there are still many questions that are yet unanswered.
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