Why I should Invest in Stock Market?

The traditional Indian Mentality is to shy away from stock market.  There are multiple reasons for it:

  1. Stock Market is complicated
  2. Stock Market is considered as Gambling

At the same time, we would ask the person:

  1. How come the richest people in the world are through Stock Market?
  2. Why there are 5% Successful Investors in Stock Market?

The obvious answer would be: Learning!

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They are the people who:

  1. Spent time for learning the aspects of stock market
  2. Learned how to read a Financial Statement
  3. Researched hundreds of financial statements
  4. Have an Aptitude of Accuracy
  5. Placed their money when valuations were low for Market or Company
  6. Reaped profits & re-invested for further gains
  7. Attained Financial Freedom

What would be the Fool Proof Plan of Investing?

We would recommend the following allocation of your savings:

  1. 50% in Real Estate (Apartment, Plot, Villa including your Home Loan)
  2. 25% in Stocks (Growth Stocks, Value Stocks, Mutual Funds)
  3. 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.

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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.

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