Every other day we come across news of innocent people falling prey to investing related scams and losing their hard-earned money. Naïve residents seeking to make large returns in a short span of time fall in this trap. They get influenced by rising stock markets and the scammers play on this FOMO (Fear of Missing Out). The schemes involve giving stocks\F&O tips on telegram channels, selling trading courses, selling unlisted shares with Grey Market premium on promise of IPO gains.
Investors must remember that there are no shortcuts to wealth creation. Consistent, disciplined investing in quality assets over the long term is the only reliable path to financial security. Fundamental principle of compounding ensures that a decent rate of return, earned consistently over a long investing period (10+years), will create substantial amount of corpus required achieve future financial goals. On the other hand, chasing quick returns and entrusting your hard-earned money to unregulated entities is a recipe for disaster.
The Indian capital markets today present plenty of options for investors – Equities, Bonds, NCDs, G-secs (Government Securities), ETFs (Exchange Traded Funds), Sovereign Gold Bonds (SGB) etc. With the help of a licensed financial advisor, people can take advantage of these capital market instruments to earn good returns in a safe and systematic manner. Intelligent investing starts with setting up future financial goals & identifying the investor’s risk appetite. Based on these and taking into account one’s earnings and expenses, the advisor can then guide you to invest in the mentioned instruments. They can also help in asset allocation, maintaining investment discipline and reviewing the portfolio strategy during volatile markets.
Similar to the biological ecosystem, an entire ecosystem of investment markets exists in the form of Mutual Fund Distributors and advisors who can work to help people invest wisely and reach their financial goals. So, request everyone to resist the allure of quick money and avoid losing your hard-earned money.
