The Best Investment Option in India and ways to Fuse for Portfolio Assortment
The traditional investment ruled and dominated the Indian market for decades like jewelry, gold, and real estate. Though they still hold tremendous and dominant value, we now witness a significant change in the investment field like mutual funds, fixed funds, and other alternative investments. The recent study suggests that gold and real estate rule the investment industry followed by fixed deposits and bonds, direct equity, and insurance.
High Net Individuals Dominate the Stock Market
The Indian market depended on the traditional and conventional options because many people in India do not have an active bank account. The stock market investors in India is still the same as that was in the year 1990 compared to countries like China and America and only the Indians with the high net trail in stocks.
Change is seen gradually, and the average Indian sees the stocks and other types of investment as risk and panics to enter. Apart from this, there are other reasons which includes
Lack of Awareness
In India, traders are mostly lawyers, bankers, financial sector workers, and other professionals who earn a considerable amount and have a basic knowledge of finance. Young professionals and students are also catching up in the field, but small business owners and common individuals don’t really trust and understand the trading business. There are possibilities of trading, not just the stock market but also forex online or by using binary options brokers. The binary options and the forex have seen much preference by the nonresidential who has settled in India.
It is subjected to Myths
The lack of awareness is the main reason that many people still associate many kinds of myths related to the stock market. For example, it is believed to be related to gambling, or needs a high level of knowledge to enter the investment market or should be financially strong to succeed. This was much in common back in the days, but now everyone is trying their hand in trading because beginners are offered demo and extensive guides for trading. Apart from this, basic financial education is not covered in school and colleges leaving the NSE, MBA, and BSE programs.
Managing Risks when combining Physical and Financial Assets
There is no such thing as an investment with low risk and no returns. In truth, the higher the risk, the higher goes the returns. The risk can be managed by diversifying the portfolio and fusing physical resource with the financial ones. Newcomers can also start by investing in local property or buying jewelry and then join the Mutual Fund or the Public Provident Fund.
