The traditional Indian Mentality is to shy away from stock market. There are multiple reasons for it:
- Stock Market is complicated
- Stock Market is considered as Gambling
At the same time, we would ask the person:
- How come the richest people in the world are through Stock Market?
- Why there are 5% Successful Investors in Stock Market?
The obvious answer would be: Learning!
They are the people who:
- Spent time for learning the aspects of stock market
- Learned how to read a Financial Statement
- Researched hundreds of financial statements
- Have an Aptitude of Accuracy
- Placed their money when valuations were low for Market or Company
- Reaped profits & re-invested for further gains
- Attained Financial Freedom
What would be the Fool Proof Plan of Investing?
We would recommend the following allocation of your savings:
- 50% in Real Estate (Apartment, Plot, Villa including your Home Loan)
- 25% in Stocks (Growth Stocks, Value Stocks, Mutual Funds)
- 25% in Liquid Savings (Fixed Deposits, Recurring Deposits, Gold, Gold ETF)
We recommend the Layering should be properly followed as the Highest Liquid Layer protects the Immediate Top Layer.
For example, if you do not keep Liquid Savings & only Stocks, then on an emergency you will liquidate your Stocks. This will make you lose interest in investing stocks, thus loose a high speed investment vehicle.