Investing directly in stocks is one of the fastest ways to lose money. An individual investor is the worst informed, has the slowest IT systems, has the longest chain of brokers to market and has the highest costs. He has zero risk management and holds his losses, often growing them as he seeks to 'average' the price of his holdings. Everybody loves the retail investor, because ultimately, it is he who gives free money to all the other players in the market. No market is truly in a bubble until the retial investor is pumping in money freely and directly.
Fools invest directly in the stock market.
Fools invest directly in the stock market.
Smart guys invest through Equity Mutual Funds. These funds are tax free after a year of holding, can be used to provide 80C tax benefits, have provided historical returns of over 15% to 17% per year (some have provided more than 23% per year), and are fully liquid - you can put in more money or take out money at any time you want. Most importantly, you get an expert to manage your money.
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