Using a portfolio-based approach of well-diversified stocks is one of the best ways to create wealth from the stock market. Investors like Warren Buffet, Rakesh Jhunjunwala, Vijay Kedia and Dolly Khanna have successfully used this approach to create huge wealth.
Over the past few days, there's been a lot spoken on the impact of Coronavirus on global economies and its potential impact on the stock markets in India and abroad. Investors who are serious about wealth creation should look at the current situation as an opportunity to accumulate quality stocks at discount prices.
Investing in stock markets is a high risk, high reward business. While majority of investors lose money in the stock markets in India, a small percentage of investors have managed to create massive wealth. Psychology is a big part of the stock market investment and those who understand it can create wealth.
Coronavirus has been in the forefront of the news these days. And, many Indian investors are getting jittery about its impact on their portfolio. Talking about the impact, the stock markets globally had taken some amount of beating back then. So what should an investor do? Staying calm and patient can help an investor secure his financial life and experience financial abundance.
Short term investing in the stock markets in India makes no sense as it simply cannot make you rich overnight. On the contrary long term investing in the stock markets in India is a rewarding experience but requires patience, commitment, and will power to remain calm when the market fluctuates.
Managing your stock market investment portfolio can be a complex and time consuming process. A DIY investor may miss out on small but important things which a professional investment advisor would not. Expert advice can pay for itself many times over in the form of excellent returns and a stable investment portfolio.
The key to wealth creation from stock markets is having a long-term view on quality businesses without frequent churning of the portfolio. Here are three important lessons which can help stock market investors to create sustainable wealth.
By taking your packed lunch to work, you can save a lot of money. It is not just economical but also healthier. The most significant benefit is when you make a long term investment with the saved money to create wealth. By saving a nominal amount each month, one can retire rich after 20 years.
Investing in large caps stocks at over-stretched valuations means getting trapped at higher prices, if a significant correction happens. So one can either wait for a correction in the stock markets in India to invest in large caps or look at small and midcap stocks.
Stock market investors love bull markets. And why not. There are euphoria and optimism all around. When every stock you are investing in is going up, how could one be wrong? But beware there is a dark side to bull markets too.
Every investor in the Indian stock market fears the bears. And when the bears come and hit the investment portfolio, many investors exit from the Indian stock markets, vouching never to reinvest. Always remember, real fortunes in the stock market are made during times of economic distress.
The Union Budget plays a vital role in allocating funds to sectors, where it is required the most. Budget is also important from an Indian stock market investor’s perspective as it can give a vital clue regarding the sectors which one should invest.
As always, the budget has evoked mixed responses from the general public as well as Indian stock market investors. To help you better understand certain key announcements of the budget and its potential impact I have decided to decode it in a simplified manner.
In Budget 2020, the Finance Minister has proposed new income tax slabs and lower rates. Under the new income tax regime, income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions. Let’s take a look at two cases to better understand this.
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