Money being a prominent player in our life in one or other form , Billionaire Warren Buffet says “Being born poor is not a Mistake but Dying Poor is a Crime .
Over the time there are several myths populated and become part of our life we started believing them as if they are facts . here we break the myths and try to find out the truth .
1. Investing in Stock Market is equal to Gambling : Utterly wrong
The stock market plays a crucial role in driving economic growth by facilitating capital formation, promoting investment, fostering corporate governance, creating job opportunities, and promoting financial support to the country.
It is legal and one must have some percentage of Investment with proper risk management by every Individuals.
USA attributes about 58% of world stock market Investments in comparison to India its only 1.8%.
2. Always Invest in Safe Instruments :
No doubt this ensures capital protection but with very low yield .
As per Age and Risk appetite , risk taking capacity can be assessed and must be Invested according to technically built portfolio. Ex : 30% Equity+30% Mutual Funds (Balanced) +10% Liquid + 10% Gold +20% Real Estate.
3. Investing is Only for Wealthy People/ You need lots of Money for Investment :
This misconception is primary reason for people keeping away from the Investments, In fact one can start Investing with low capital also and keep adding to the corpus, presently lot of Online Tools/Apps readily available to choose suitable tool for making regular Investing process.
4. Saving in Bank is enough Investing not required :
Saving in Bank Account is not enough , Lets look at this process in long term prospective , Bank literally offers 3% in saving accounts and about 7.5–8% Interests for term Deposits . Look at the Inflation of the country it is also fluctuating around 8% . The resultant gain will be Nil.
5. Save/Invest with leftover Funds :
Exactly opposite rule is correct i.e We need to fix our Monthly/Quarterly Saving/Investing Amount — Invest/Save what ever is fixed quantity amount and we have to manage our expenditures with remaining funds .
These are Simple points ,more helpful for common people , If we stick to disciplined Investing regime its gonna give us handsome corpus for our long term goals in life .