The only way for wealth creation

Historically it is proved that only stock market a estate investment can offer above-inflation return long run. Real estate requires big-ticket investment. This the market is not accessible for small investors. For salaried individuals and other professionals, the stock market is the only way for wealth creation. Avoiding equity investment means your retirement life is at risk. Among real estate and stock market, the latter should be the preferred choice for every individual due to the following reasons

1. You can start investment in equities with as low as
   *5,000. However in real-estate you can't go with such tiny amount. For any retail (small) investor
   equity investment is much more convenient. 2. The stock market is highly regulated. Thus, price
   discovery is much more transparent. Market regulator (SEBI) has taken almost all steps to safeguard the interest of small investors. However in
   real estate, price discovery itself is not so transparent. 3. Equity investing offers high liquidity. You can
   purchase stocks anytime and also sell that after few moments of purchase. There is no obligation. You can sell it after 1 minute or 1 month or 1 year or 10 years whenever you want. However in real estate, you can't purchase a land to sell it on the very next day. You can buy and sell stocks from anywhere in the world. With the advent of online trading, physical presence is not necessary. Buying and selling can be done with just a click of a mouse. However in real estate, investment is not that simple.
   Because of many such advantages and above-inflation return, equities must be a part of everyone's portfolio. The irony is retail participations is lowest in Indian stock market compared to other nations. Widespread misconception and lack of knowledge are the main reasons.
   Few years back I had a telephonic conversation with a first-time equity investor. Following is the transcript of our conversation. From this incident, you can easily guess why small investors avoid stock market
   Investor: - Just a few days back I came across to your website
   and got the details of your equity advisory service. How much return Can I expect following your stock
   recommendations? Me - You can expect around 20%-30% average annualized
   return across any market situation. Investor - Only 20%-30% annualized return! Me – Why? Isn't 20%-30% sufficient for you? Investor - Basically, other stock tips providers are offering
   30%-60% monthly return, and you are saying just 25%;
   that too annualized! Me - Monthly 30%-60%!! Well, why don't they trade on their
   own? Frankly speaking, for me 25% annualized return
   is sufficient enough. Investor – Right now, the market is in the upward direction,
   and I want to make the most from this situation so I
   can't consider you as my preferred choice. Me - Well, My advice is to stay away from any stock tips
   providers who are offering such extraordinary 30%-60%
   monthly return. Investor - Sorry to bother you. For me, 25% annualized
   return is too little to consider from the stock market. I
   can't go with you. Me - Fine, You can go with that. Make sure to inform
   after 6-8 months regarding your progress in equity investment.
   Just after 3 months, the same person called back to mention that he lost 32 lakhs from trading just because of the equity advisory firm that promised 30%-60% monthly return. I wasn't surprised at all rather I congratulated him because he learned the lesson within 3 months at the cost of 2 lakhs.
   Now. I have a question for all, from the above incident, whom you want to blame? Many will blame that advisor; many will blame the stock market itself! Very few may get ready to blame that investor. But in reality it is that investor, who is alone responsible for the outcome.
   Investors are satisfied with 7%-9% interest on bank's fixed deposit investment. However, the same person is not happy with 25% annualized return from the stock market! More than double return that of bank deposit or post office deposit, still they demand more return from stocks! For me, 20%-30% annualized return from the stock market is sufficient, anything above that is a bonus. During bull market, you may earn much more return but that's not permanent and can't repeat year after year. Over a period of 15-25 years if your average annualized return remains within 20%30% then you can easily achieve financial freedom. Always remember world's most successful billionaire investor and also once world's 2nd richest person, Warren Buffett made his fortune by just 22% annualized return over 50+ years. On the contrary, many amateur investors demand 30%-50% monthly return, jump in the stock market; end-up with loss and finally blame the stock market! Sometimes they even mention that equity is another form of “gambling” and also restrict others from investing in stocks! Hardly, they dig deeper to find out their own mistake.
   "Investors gladly accept 7%-9% annual return from bank's fixed deposit but the same person can't accept 25% annualized return from stock market!”

Don't skip the basics
Lack of proper knowledge is one of the main reasons for widespread misconception in Stock market. Just think of it completing our formal education requires around 12 years From nursery to higher secondary level – the journey is quite challenging. Post higher secondary level, we choose our career path. To complete graduation and post graduation, it requires another 4-8 years. After the rigorous 18-20 years of hard work and dedication, we finally land up in the job to earn money. Whether you are self-employed or salaried professional, you must have to go through the 18-20 years of the learning curve. Every single penny of your earning is the result of those 18-20 years of hard work. But the surprising fact is that in the stock market, investors attempt to earn from the day one itself! Doctors dedicate 5 years in MBBS course and then few more years in practicing. Finally, they are capable to earn from his profession. However, in the stock market the same person attempts to earn money from the first day! If you are not well-equipped with knowledge and expertise and still going for a critical medical operation, then what will be the consequences? Whom to blame for such consequences? Unfortunately in the stock market, investors jump with little or no knowledge, end up with loss and then blame the market! Excluding themselves, investors are ready to blame everyone. Isn't it ridiculous? Isn't it like expecting crops without sowing the seeds?
"To earn money, a doctor dedicates 5 years in MBBS course, an engineer dedicates 4 years in B.E course; where as to earn money in stock market nobody is ready to dedicate a single month to learn
the basics.”