?Middle class doesn?t trust share market?
IF YOU have any illusion that the Great Indian Middle Class goes gaga over the boom in the share market, the fact will cure you of this. Between 1992-93 and 2004-05, the household investment in the capital marketing India increased by just 1.4 percent.india Updated: Mar 13, 2006 15:15 IST
IF YOU have any illusion that the Great Indian Middle Class goes gaga over the boom in the share market, the fact will cure you of this. Between 1992-93 and 2004-05, the household investment in the capital marketing India increased by just 1.4 percent.
This, and many other facts came up during a lively interactive meet in the Investors’ Camp held at Hotel Jehan Numa today. The meet was organised by Bhopal Stock Investors Association (BSIA).
“Don’t marry a stock, invest logically”– was the bottom line of the presentation. Experts tried to enlighten the audience about common mistakes an investor makes while investing hard earned money.
Offering mantras on safe investments, noted analyst and BSE member Ramesh Damani advised prospective investors to ‘invest early and wisely’ and give time to stocks for growth.
“In next three years, shares related to food-processing industry are expected to give good returns,” was his prognosis.
On investments in IPOs, Prithivi Haldiya of Prime Data Base warned investors against too much dependence on television analysts. They may go wrong too, he cautioned.
Comparing statistics, he said from 1992-93 to 2004-05, there has been an increase of only 1.4 percent in household investment in the capital market in the country.
“In India, the household has virtually rejected the capital market and the sole reason is a dozen of big scams in the last one decade with no action having been taken against the culprits,” he said.
Haldiya advised that before going for IPO shares, one should first procure adequate information about the promoters and whether they had ever been defaulters. “Fixed price and book-building issues should be avoided,” he suggested.
Ashok Jain, Chairman, Arihant Capital Market Ltd – a co-sponsor to the programme — provided some valuable tips like taking guidance from experts, not getting carried away by the market, focusing on fundamentals etc.
“Market is like a pendulum, which is either over-optimistic or over-pessimistic, so one should invest with sufficient margin of safety,” was his piece of advice.
He said investors should keep 30 – 40 percent cash to take benefits of lower valuations during corrections. In his introductory address, president, BSIA said that on-line trading was first undertaken in MP in 1991 through the Association in Bhopal. He also highlighted importance of the meet.