Whether it’s retiring early, saving for children’s education, paying off a loan or to live a secured and satisfied life everyone has dreams they can achieve by investing their savings. However, the question that arises is that, should one leave his money tucked away in the bank or plough it into the stock market where the potential for higher returns is greater but the chances of losing money is higher? Deciding where to invest depends on one`s attitude towards risk (one`s capacity to take risk and one`s tolerance towards risk) and the investment horizon and non-availability of guaranteed-return investment products.
In such a scenario, investing in equity, which offers returns that are higher than the inflation rate, help to build wealth and to improve the standard of living. It is fine that stock market fluctuates over time. At present as far as the world economy is concerned it is on a boom. As soon as globalization and liberalization has come into act it has well shaped the economy. India has turned out to be the hot destination for the money investors and this has resulted growth in the sensex .It was never hoped before that BSE will ever touch the mark of 16000 points. But only due to the new economic opportunities and the confidence of people in India’s economic future it has been successful .Investing in equity is the way to earn money and to fulfill the dreams. The risk involved with investing in equity can be moderated by careful stock selection and close monitoring.
5 Comments