Ten Reasons Why Most Indians Don't Invest In The Stock Market

 

Wealth creation, in the long run, is only possible when you do:-

·    Good research on assets

·    Have a financial goal

·    Divide your expenses and savings wisely

·    Invest regularly

·    And most importantly, be consistent with that investment!

Without these points, creating enormous wealth and leveraging the power of compound interest is quite hard. And when it comes to compound interest, nothing is better and harder than the stock market. But harder the journey better feels the destination. And therefore, in every successful Smart share market investor's speech or interview, you would find they specifically stress the fact that one should focus on leveraging the power of compound interest via the financial markets.

But even after so much money being circulated and earned by everyone in our 130Cr population country, why do we have so few successful investors? Why is our financial literacy at the lowest where we all know our families focus more on education? What are the reasons people are not able to understand the power of money in the long term? Today, we will get to know more about money and the top reasons why Indians don't invest in the stock market and hence miss out on the gains that are possible.

 

Top 10 reasons

1) Lack of knowledge

Most people don't know what happens in the stock market. They couldn't care less since everyone calls it a gambling arena.

2) Lack of confidence

People always get scared when it comes to money. What if the investment fails? What if the money is depreciated? What if they don't get 100% returns in 1 month? Unexpected return expectations and a lack of confidence to invest is a big problem. Remember, if you beat the Bank FD rates, you are a king.

3) Playing too safe

Most people in India believe in Savings bank since it has a near-perfect guaranteed return. Even if they don't get returns, their money is safe, isn't it? No!, Inflation is eating away your money!

4) Lack of efforts

People don't try to make an extra effort to learn about the financial markets. They believe in their banks and want to keep it that way. Who will search the internet and search more about investing right?

5) Almost no guidance

There is absolutely no guidance when it comes to learning about investing. Either people learn on their own or from their friends or end up losing a lot of money by investing in the garbage.

6) Not doing proper research

People try to find tips that apparently will make them a millionaire in a night. Always remember, there is nothing such as quick and free money!

7) Believing in myths

"X person lost his life savings in the stock market". It's a place to gamble money. No idea how much these myths are correct, but remember you cant become good by following exceptional failures.

8) No proper courses

There are no proper courses from where people can reliably learn how to invest. Lack of guidance and proper course is why most people remain unknown to the capital markets.

9) Lack of capital

In a country where almost 50% of the population is below the poverty line, it's easy saying invest than doing it. People live on a paycheque to paycheque, forget about investing.

10) Faith in gold

Love for gold in south Asians is why almost all the possible savings one does in their life are spent in buying gold. At least go for sovereign gold bonds!