When all the kids were busy playing with toys and gadgets, this 13 year old kid was playing with balance sheets of different companies. Eventually he has now become the most successful investors of all time and most of all his wealth has been a result of share market investments. He is none other than Mr. Warren Buffett.
First lets understand what kind of investment are currently available and how much returns you get from those.
- Fixed deposits – 7%
- Real Estate – 6%
- Gold – 5.5%
- Bank Savings account – 4%
- Current account – 0%
But, if you compare these rates with Mutual funds and Shares they have outperformed all the above options.
Mutual fund and shares have given minimum 12% to 22% of returns in last 5 years. Some have even given upto 32%.
In India only 4-5% people invest in shares while in USA more that 50% people invest in shares.
So why is India lacking behind in the Shares game?
The main reason is that the people in India lack risk appetite and do not have proper financial knowledge. People are afraid of scandals and losing their money.
Most common mistake that people do is they look for hints or insider news while buying the shares. They expect someone to tell them which stock will go higher and which one will fall. This type of mentality will never make you successful in the long run. If you really want to be a successful investor, you should perform an analysis and follow the ongoing trends and be statistically predictive rather than betting on someone else’s tip.
In India we have two stock exchange where stocks are traded.
- National Stock Exchange (NSE)
- Bombay Stock Exchange (BSE)
Best Tip for good investing in shares which you won’t find anywhere but on CurvySide
- Always look for Lesser P.E
Now P.E here stands for Price to Earning Ratio of share in simple terms, it is the ratio of how much money you have invested to how much returns you will get from your investment. If the P.E is less it’s the best time to invest in market and if it is high it’s time to exit the market.
For example if the P.E is 10 that means you need to invest 10Rs to gain 1 rupee /earn. Similarly if P.E is 30 you need to invest 30 Rs to gain 1 rupee/earn.
- Always buy the share at lowest price possible.
Buying at higer price reduces the net return you get on a larger scale. So always be patient and wait for thr right price to come.
Now the biggest question arises is how to invest in shares?
There are two ways to invest in share markets.
1. Mutual Funds ( Indirect Investment )
2. Buying Shares ( Direct Investment )
Now both the investment are available on the Upstox. Upstox is an online share trading platform which has lowest brokerage charges which are almost near to none.
You can also invest in mutual funds which have Top US companies included like Microsoft,Apple etc.
Also on opening a successful account with Upstox they will give you free shares. Isn’t that interesting? Open account now