The stock markets have grown 12-fold in two decades, but investor behavior has not changed, repeating the same mistake.
Annoyed by the ads? Install the Divya Bhaskar app to read the news without ads
Bombay 4 days ago
According to experts, greed is the only thing that can be harmful.
A study on the performance of Indians, like their investments, found shocking results: Investors have lower returns than funds.
The stock market has today crossed the level of 48,000 points. Over the past two decades, he has dropped from 3,759 points 12 times. At the same time, the market cap has increased from around Rs 16 lakh crore to Rs. 191 lakh crore. But there has been no significant change in the type of investment by stock market investors during this period. They are making the same mistake today as they were years ago.
The nation’s leading Axis mutual fund studied the long-term implications of its buy and sell decisions to understand investor behavior between 2003 and 2019. Analysts observed performance in different categories, including investment funds. ‘stocks, hybrids and debt. The results were shocking. The analysis shows that the number of investors increases and decreases depending on the performance of the market. For this reason, their actual performance is much worse than that. Against this, they could have simply bought and held or realized through systematic investment strategies.
Most importantly, this trend has been around for a long time. According to the analysis, the number of compulsory savings programs in India is low. For this reason, the average investor is forced to make their own decisions and invest. The best part is that people can invest freely. However, according to experts, this greed can be harmful. They are affected by the immediate movement of the market and start chasing after performing stocks or mutual funds. For this reason, investor returns are worse than fund returns.
Investors usually make these mistakes in the stock market
Act on Market Expectations: Investors are pushed by short term markets due to temptation and fear and stocks are lagging behind the current trend. The returns are weak and late.
What investors should do on the stock market to avoid mistakes
Be disciplined: invest regularly and on time to achieve your goals Think good advice: How many investment firms are advising here for the benefit of the stock market? It should be checked before implementation Trust yourself: Trust your own analysis to invest in the market. Before investing in a business, study its data and move on.