Indian Stock Market - Are Indians lagging behind Investment?

Currently, though India seems to be the most populated country with huge youngster population, but still only 3-4% people are investing through Stock Market. Recent Research states the lack of awareness, trust are the major driving factors for that. India is struggling between 4-6% Inflation but still people hold their cash at the maximum. This results in poor spending and circulation of the money in the economy. Which Leads to the major resistance of the Country in terms of expansion. 

Moreover, People are more interested in buying gold and in real-estate which they believed to be less risky, but globally countries are investing in Crypto currencies which are far better than the traditional investments.

People in India should have wider approach in their financial learning and need more awareness about the investment. Though government is giving huge benefits for the corporates in terms of investments and capex through PLI Scheme, but still the participants are very few when comparing to the large crowd of the country. 

Western countries are more advancing in investment strategies, as a result their standard of living is getting improved- says sources. Indians are more considered in spending, that avoids the useless spending but also restricts the useful investment. 

People tend to believe the FD and Banks, but forgetting in few countries people are paying interest for holding money in bank, as a result people tend to invest and spend. More liquidity in the country and more equality among between poor and rich.

India is having two major stock exchanges, one is National Stock Exchange ( NSE ) and another one is Bombay Stock Exchange ( BSE). The saddest part is the money inflow in the NSE is majorly by FPI- Foreign Portfolio Investors / FII- Foreign Institutional Investors. They find the Indian market is very impressive and flourishing and hence the money inflow is high. They are the market movers in India. The question is when Foreign investors see the opportunity in India, why the Indian Retail Investors (WE) not actually interested? Where the problem actually is?

The problem starts with the lack of financial Education, and people about to blame the rich gets richer and poor gets poorer. Many people lose their hard earned money in inflation and in spending in depreciation assets. Experts usually suggest, only if you have enough appreciating asset in hand you can go ahead buying a depreciating asset ( Car, Bike etc) But Indians are different, they work 9 to 12 months hard to own a bike which obviously the wrong. That’s where Indians are getting deviated. With the growing digital education people may soon learn the financial aspect of the learning and improve the Economy. 

During the pandemic, people face huge downside in hard firing of the top MNC’s and blaming the situation as is. They need to stop blaming and start learning how to equip themselves and beat the inflation or recession whatever comes. Of which the above scenario, Stock Market in India is always open, all we need is few knowledge and some skill.

#Finance #Investment #Stockmarket #Equity #Economy