Why Indians don’t invest in stock market is just because they have a lack of knowledge. Or else what makes them stay away from investing in the stock market?
In this article, we will see why Indians don’t invest in the stock market.
As we all know India carries almost 1.3 million of population and out of which only 2% of people opt for an investment in the stock market. Additionally, the literacy rate is around 74%. This means out of that 74% only 2% will continue investing in the stock market.
Now here in India out that 2%of investors mainly come from states like Maharashtra, Gujarat, Tamil Nadu, West Bengal, and the last one are Uttar Pradesh.
Here the question goes why Indians are so lacking behind.
Reasons Why Indians Don’t Invest In Stock Market
1. Lack of knowledge
Apart from the commercial profession, no one else gets the exact stock market knowledge. Neither in a school nor in a college you get the stock market knowledge, isn’t it?
Additionally, there are no specific classes offering knowledge concerning the stock market. Hence Indians fail to invest in the stock market.
Additionally, most of the time the Indians don’t know the exact process of getting a proper investment in the stock market. Like, what is a Demat account, trading account, and all.
2. Lack of power in compounding
Normal Indian makes an investment in the bank in form of a fixed deposit isn’t it, here they hardly get 6% or even 10% returns on investment in a year.
But there are many stocks which get 1k% and 2k% return within 15 to 20 years.
Apart from these, there are several other benefits like bonus shares and dividends that the company gives from time to time.
3. Risky Attitude
The Indians always deals in and with zero or less risk undertakings as the Indian tendency or nature is risk-free. That’s the reason why there are less entrepreneurs in India.
Here, we Indians are always worried about what if we lose money in the stock market.
But if you are an investors all these ups and down makes on opportunities to invest in the stock market.
4. Saving Attitude
Most of the Indians maintains the saving attitude and earn out of returns. They just don’t want their money to invest, because the risk of losing money is quite high. Hence they end up following their saving attitude.
Indians always invest in either Gold, real estate, or mostly in fixed deposit. So here in India, the competition from a stock market viewpoint is very strong because there are several investing options.
5. Lack of awareness
As in India, there is no formal or any specific education providing the knowledge on the stock market about all the ups and down also how to deal in, etc. This creates an uncomfortable atmosphere in minds of Indians and hence results in no investment.
Today there is a need to understand the stock market, understanding the stock market makes the youth make a proper investment, also will help them to stand with and take correct decisions.
As we all know how to earn money, but if we don’t know how to invest then here the earning makes no sense.
Remember earning is always backed with investment. And an investment is backed with a correct and helpful full survey and decision.
Most of the time the small investors are falsified by the fraud advisory companies by giving them the attitude of making money double and hence grabs the money as well as useful information, all such results in zero hopes and zero desires on part of investors and hence makes no further investment.
Role of Internet In improving investment in stock market
Making use of the internet will surely increase awareness about investment in the stock market. Likewise, the best educational channels will stimulate knowledge. Also, it explains the exact process of starting the investment.
The intern and the investors are getting in the right direction of investing in the stock market.
The proper guidance is provided via the internet. Also, it carries very little time to update with the current stock market situation.
Here in this article, we have seen why Indians lack behind in investing in the stock market.
What are the reasons which make them uncomfortable to invest? The most common reason is the lack of knowledge of the stock market.
Also according to the survey, we have ended up with the conclusion that how the internet plays an important role in increasing awareness and making the youth ready for investing in the stock market.