Despite the risks inherent in equity share ownership, the traumatic shocks of 1992, 2000, 2008 and 2020, equity remains a popular investment option among both individual and institutional investors. In fact, after the global financial crisis of 2008-09, the riskier equity (startups and pre revenue) has become even more popular with the investors who have been chasing yields on one hand and had access to cheap money on the other hand.
After the market crash due to outbreak of pandemic, the inflows into global equity funds have surged exponentially. The net flows in 2021 YTD alone exceed the net flows during previous two decades (2001-2020).
Anecdotal evidence suggests that one of the main reasons behind this unshakable popularity is the possibility of scoring “big”. It is this chance of multiplying the money in short term, which has attracted hordes of investors to the stock market.
Nonetheless, there is no dearth of people who
are scared of the word ‘equity investing’.
Some of them have lost their entire savings in stock market, and the
others, considering it another form of gambling, did never invest in shares.
Where do
you stand in this picture?
·
Is it true that the investment
option, which has statistically given highest returns in all economic
conditions, did never work for you? If
yes, did you try to examine the reasons for this?
·
Even if you made fabulous gains
in the stock market, could you attribute these to careful planning, or was it a
fluke?
·
Do you consider investing in
stocks an art and a science, or just a ‘roll of dice’?
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