Five Stock Investing Myths You Need To Bust Right Away!

1. Five Stock Investing Myths You Need To Bust Right Away!

2. Investing is normally considered to be a complex exercise. Most individuals feel that investing is not their cup of tea and tend to push off the activity. They instead choose to keep their funds idle or put them in fixed deposits. • However, given the long term attractiveness of equity markets, it is quite clear that no other avenue can provide such handsome returns.

3. Here is a quick look at the common equity investment myths:  • I think it’s too late to start investing: Remember that it is never too late for a new beginning. Whether you are 20 year old and just out of your college or whether you are in your 40’s and in the middle of your career, it just does not matter. • I feel I do not have sufficient income: This is a common assumption a lot of individuals tend to have when it comes to their finances. However, remember that to create wealth in the stock markets you don’t have to jump in with a hefty amount at one go. In fact, it is always advisable to start investing early despite the level of your income given that the time factor plays a key role in shaping up your wealth over a long term. • I think stock markets are akin to gambling: Please understand that investing in equity markets is vastly different from speculating. Stocks will be like a gambling only if one engages in high risks like trading penny stocks, leveraged trading, buying and selling based on rumors etc.

4. I have no basic knowledge of stock markets:Online equity trading has become extremely convenient and user friendly over the years. This has primarily been made possible due to the rampant and fast paced changes in technological support for the financial industry. • I invest only when markets fall: While it is correct that buying stocks when the prices dip is a good idea, simply adapting this strategy could not be very wise thinking. The biggest mistake common investors tend to do is buying bad stocks on dips.  A recent update from International Monetary Fund (IMF) confirms that India is a source of growth for the global economy for the next few decades. India now contributes, in purchasing power parity measures, 15% of the growth in the global economy, next to only China and the US. The IMF views India as a long run source of global growth and noted that the country has three decades before it hits the point where the working age population starts to decline.