While most of the financial experts boast of hefty returns in equity markets, I am personally really skeptical of it. No, I do not mean that share market does not offer attractive returns. I simply mean that efforts you put in to overcome and understand volatility of market, the time you spend on it and then get sleepless nights over declining market due to some godforsaken reasons, the returns are not that attractive.
And if you closely observe financial analyst, they have the convincing power on reasoning for either of case. I mean any leading share broker or financial analyst is confident while talking on the reasons for market going up. The same broker is equally confident to reason out the declining market trend, even though market crashes the same evening.
If you look at the SWOT analysis of market, you have to rely on opportunities and threats, which are normally beyond the common man's control. Greece debacle, monsoon forecast, RBI's policy on repo rate, China's fluctuation, fuel prices etc. What the heck can you do with all these? Though I have seen common people discussing on these issues as if they control such situations. And they happily dwell upon, either positively or negatively, on the issues to which they are nowhere nearby.
One of the best mythological statements which I always hear, "Market sentiments are good for this company as it is fundamentally strong ". Now what is the meaning of this? Nobody knows. And this statement comes from small scale industrialist. I always feel that "instead of studying other companies for its fundamentals and then parking money in buying their shares and waiting for returns, it is better to study your own business, understand it and wisely make investment plans there, it will give you much better returns".
Another problem with share market is that people narrate only success stories. Of course, who would like to boast on failures? But I have seen numerous cases who have gone bankrupt, absconding or lost sizable chunk of saving in share market. And this happens across board of different age group, social status. I personally have not come across with any person who claims that he runs household by trading in market. Or one to say that this house is completely built on returns of share market.Those who really make money, never beat the drums. So do not get in to loose talks normally over a cup of tea on success of market.
My parents happily invested in Fixed Deposits and now enjoying their life. Of course, I will not ask the new age people to invest in FDs as they are very low interest paying instrument. Though I feel that there are many other safe avenue like debt funds or balanced mutual funds which offer you tax free returns much more than FD.
Well, I want to say that you should not look at the share market at all, as an investment avenue.If you have time, look at this option. Take out some capital out of your savings and invest in share market with homework. But remember, one should not be overdependent on market.It can take care of additional expenses like family dinners or if you are too successful can take care of a week long family picnic in a year. One can have foreign tour as well depending on investment. But not beyond that.
Finally, it is up to individual how to look at share market. Personally, I have not made heavy profits nor I have incurred losses. By and large my returns are definitely better over others. But it has not come free. I have spent enough time on that. And with no adequate measures to calculate returns, I have stopped investing in share market for past one and half year.
And if you closely observe financial analyst, they have the convincing power on reasoning for either of case. I mean any leading share broker or financial analyst is confident while talking on the reasons for market going up. The same broker is equally confident to reason out the declining market trend, even though market crashes the same evening.
If you look at the SWOT analysis of market, you have to rely on opportunities and threats, which are normally beyond the common man's control. Greece debacle, monsoon forecast, RBI's policy on repo rate, China's fluctuation, fuel prices etc. What the heck can you do with all these? Though I have seen common people discussing on these issues as if they control such situations. And they happily dwell upon, either positively or negatively, on the issues to which they are nowhere nearby.
One of the best mythological statements which I always hear, "Market sentiments are good for this company as it is fundamentally strong ". Now what is the meaning of this? Nobody knows. And this statement comes from small scale industrialist. I always feel that "instead of studying other companies for its fundamentals and then parking money in buying their shares and waiting for returns, it is better to study your own business, understand it and wisely make investment plans there, it will give you much better returns".
Another problem with share market is that people narrate only success stories. Of course, who would like to boast on failures? But I have seen numerous cases who have gone bankrupt, absconding or lost sizable chunk of saving in share market. And this happens across board of different age group, social status. I personally have not come across with any person who claims that he runs household by trading in market. Or one to say that this house is completely built on returns of share market.Those who really make money, never beat the drums. So do not get in to loose talks normally over a cup of tea on success of market.
My parents happily invested in Fixed Deposits and now enjoying their life. Of course, I will not ask the new age people to invest in FDs as they are very low interest paying instrument. Though I feel that there are many other safe avenue like debt funds or balanced mutual funds which offer you tax free returns much more than FD.
Well, I want to say that you should not look at the share market at all, as an investment avenue.If you have time, look at this option. Take out some capital out of your savings and invest in share market with homework. But remember, one should not be overdependent on market.It can take care of additional expenses like family dinners or if you are too successful can take care of a week long family picnic in a year. One can have foreign tour as well depending on investment. But not beyond that.
Finally, it is up to individual how to look at share market. Personally, I have not made heavy profits nor I have incurred losses. By and large my returns are definitely better over others. But it has not come free. I have spent enough time on that. And with no adequate measures to calculate returns, I have stopped investing in share market for past one and half year.
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