The way to get rich by investing in Share market…!
We all know what a share market is and if you want to know about it, you just have to surf the
internet or read books that are available in plenty. Like any company wanting you to buy their
Mobile, TV, Car, etc. so that they grow bigger and bigger; the financial institutions want you to
invest in the shares so that they get a steady stream of income from your transactions or trading
in the share market.
To ensure that they earn more and more, the financial institutions will motivate you to invest in
the share market through mutual funds and equities or shares. Articles will be floated, TV news
will be generated, digital marketing agencies will be hired to promote online and what not. After
all the promising to you on the great returns that you are going to get through investments in the
stock market, the financial institutions put a Disclaimer that says that you are getting into
something that is very uncertain. There is no guarantee that you will be gaining as promised.
So what shall one do? Should one invest money only in the options like PPF, Fixed deposits,
etc that give assured but low returns? These returns are low or sometimes negative as they do
not even beat the inflation. The only possibility for growing your money is by investing directly or
indirectly (Mutual funds) into the share market. Buying the shares of businesses that are having
a growth potential can make you richer. But to get richer by investing in shares, you need to
follow some guidelines and have to get clarity on the reason of your investing into the share
What are you investing for?
This is the most important question to be answered. If your objective is to make fast money in a
short time, you are putting your money at a great risk. It may or may not happen as you want it
to. The share market is influenced by many external forces. Political instability, war, low
monsoon, availability of raw materials, etc……there are so many things that can go wrong!
Invest only that part of money into the stock market which you are not going to need for
staying alive or surviving. You can be very sure that you will get returns, but when you will get
the expected returns is a question that nobody can answer. Otherwise, the financial institutions
would never put a risk disclaimer.
A thorough research on the company you are investing in:
Before you buy even a single share, be sure what you are buying. Know that company
thoroughly. Do not listen to what the stock brokers are saying as most of them are doing it for
their own profits. Even the news many a times is to create hype. It is better that you study the
financial statements of the company of which you will be buying shares. Study the balance
sheet, profit and loss statement, etc that will give a complete insight into the financial health of
the company. There are enough books and articles on the internet that will teach you which
financial statements to analyze and how to interpret them.
Do not imagine anything or get influenced by any news or propaganda. Listen only to the facts
and then buy the shares. You will never go wrong this way.
The trap of going with the flow:
This is a foolish thing to do with your money; investing it in the company or mutual funds
because everyone else is doing. Know the potential of returns before even investing in the
mutual funds. Study the share or mutual fund for its earning potential and then only take a call.
Nothing good comes easy; all good things take some time. Be patient with your investments
related to the stock market. The growth of the stock market is under influence of many factors.
So, many a times you have to wait to get the expected returns.
Pay attention to what the disclaimer says when you are investing in the shares or mutual
funds. You will never go wrong! Best of Luck To your new Investment.