Investing and Finance

[Itsme...]

Hi Everyone. As you all know a major portion of our country's population are Illiterate when it comes to personal finance management. I have came accross many thread in twitter, which have explained about investing, finance management very well. This thread will be used for discussion, facts sharing related to Personal finance. I will start with a nice thread about Japan.

https://twitter.com/x/status/1424140953707634690

Source

Read that twitter thread to know about share holders perk of Japan. Thise perks aren't available in India.

 

[Msingh]

Retail Shareholders don't have any value in India.

 

[Itsme...]

Retail Shareholders don't have any value in India.

It won't change without increased retail participation. Until now Market was driven by FIIs. From last few years domestic institutions have made near equal participation. We will see retail participation more by 2025. More participation means more power.

 

[rohitvatsa]

It won't change without increased retail participation. Until now Market was driven by FIIs. From last few years domestic institutions have made near equal participation. We will see retail participation more by 2025. More participation means more power.

Agreed i have been in investing in market from 2008 but rules in India are skewed towards promoters and other big financial institutions.Moreover,here everyone wants to make quick money hence the regular call from scammers from Madhya Pradesh once you open a DEMAT account

 

[Msingh]

It won't change without increased retail participation. Until now Market was driven by FIIs. From last few years domestic institutions have made near equal participation. We will see retail participation more by 2025. More participation means more power.

That's because lots of us are investing through mutual funds.

 

[Itsme...]

That's because lots of us are investing through mutual funds.

Even there the total money that is invested in those equity MF is far less than money invested in debt oriented assets. Some months ago, one finance expert made a detailed analysis on twitter about that investing pattern in India. There he showed data. Indian are still biased towards less risk, less return asset like FD, Post office scheme, LIC etc.

 

[Itsme...]

https://twitter.com/x/status/1434866305027514372

Source

LoL.

 

[Itsme...]

https://twitter.com/x/status/1437599131556515841

Source

Thread about Earl. Read it. Power of compounding and dividend reinvesting.

 

[Detective Conan]

Even there the total money that is invested in those equity MF is far less than money invested in debt oriented assets. Some months ago, one finance expert made a detailed analysis on twitter about that investing pattern in India. There he showed data. Indian are still biased towards less risk, less return asset like FD, Post office scheme, LIC etc.

bro due to some scam news and losses incurred during recession people prefer to get smaller fixed returns FD , post office , LIC most of the times they surely give to some less interest but people are sure of some profits - in debts atleast people are assured they will be paid interest amount on particular time or on regular basis . sadly the institutions which used to give assured smaller returns are forced to invest in risky assets or investin risky start up business ( which those institutes head dont agree with investing in startup- business not having better profit generating plan or long term diversification implementation plans)

slowly people are trying to invest in newer avenues due to less interest in saving account or being influenced due to cryptocurrency exchange promotion on news channel/business newspapers or trading app promotion and getting slowly aware about upcoming opportunities .

 

[Itsme...]

bro due to some scam news and losses incurred during recession people prefer to get smaller fixed returns FD , post office , LIC most of the times they surely give to some less interest but people are sure of some profits - in debts atleast people are assured they will be paid interest amount on particular time or on regular basis . sadly the institutions which used to give assured smaller returns are forced to invest in risky assets or investin risky start up business ( which those institutes head dont agree with investing in startup- business not having better profit generating plan or long term diversification implementation plans)

slowly people are trying to invest in newer avenues due to less interest in saving account or being influenced due to cryptocurrency exchange promotion on news channel/business newspapers or trading app promotion and getting slowly aware about upcoming opportunities .

1. IMO institutional investors should allocate a portion of their money to risky assets like Start ups. Like may be minimal 1-5% of AUM. We need more such start up investors. I don't know any big investors except Infoedge in India. While China has many like Tancent, Ant Financial etc.
2. About safe debt deposits, the current inflation rate is some 7-8%. The ground level is more than 20-30%. See oil and gas price. Without generating Atleast official rate of 7%, you are actually losing money. FD rates for 1 year is only 5.5 now. People need to move towards high risk high return assets like equity like they do in US/Europe and Japan if aim is long term(10-15 years). That will generate Atleast inflation beating wealth.