How Much You have Lost in the Indian Stock Market Rally?

How Much You have Lost in the Indian Stock Market Rally?

This is October 2010 and since past 30 months means since January 2008, many people have stopped investing in the stock market. This is because they are afraid of the stock market fluctuations.

Many investors have become the conservative investors and simply stay away from the stock market.

But According to Economic Times,

Retail investors could have gained over $15 billion by investing just 5 percent of their savings in Indian capital markets in the past 30 months -- an opportunity that was tapped better by foreign funds, says a top fund manager.

"Retail investors lost an opportunity to earn $15 billion. Had they invested 10 percent of their savings in equity market they would have earned $30 billion," added Singhania, who has handled one of the largest corpus of funds in India worth $3.5 billion.”

Well, Yes. the retail investors have lost US $ 15 Billion in the past 30 months. If you had continue investing since January 2008 in the Indian stock market in any form say regular SIP or even regular direct stock investing than you would be more richer today than January 2008.

This is the basic nature of equity. It goes up and down. But well, in the long run, it gives you the excellent returns and make you financially free and rich.

After January 2008, many of my friends used to argue with me that, but the this time market is different. Previously there was no recession in the USA but today USA is passing through the phase of recession. And that’s why one should stay away from the stock markets now.

But well, again Equity has outperformed any other asset class in the past 30 months (Including Gold). Always remember that, when you invest in equity, you are not just investing in a piece of paper but basically you are investing in the underlying business which is very useful to the economy(If it’s the fundamentally strong company).

So still you are not late. If you have not started investing in equity yet than start investing in equity now and become on the path of financial freedom.