In the 1990`s Indian Equity Market first time touched 1000 Sensex Points. It was a great achievement for the Indian Stock Market and Everybody was cheered up.
In Mid of May 1991, Indian Prime Minister Mr. Rajeev Gandhi's
assassination happened & a big crisis has done in the stock market, and a
similar Balance of Payment ( BOP Crisis) run in the Indian
Economy.
India was unable to pay for essential imports or services of its
external debt payments. With all these Incidents stock market has
overcome.
In 1991, The Finance Minister of India Dr. Man Mohan Singh
announced a liberalization Policy In India and Opened a Global Market for our
Country. It was a big Economic reform for India and it led to recognition at
the international level.
At that time the Big scam of Harshad Mehta has done and it was
worth Rs of 250 Cr in the current value of 2020 and the blood bath on Dalal
Street.
The matter of Harshad Mehta has not settled down and Mumbai &
BSE building has echoed with blasting Bombs in 1993.
With lots of Events of the Kargil war in 1999, the Tech-boom bubble, the Ketan Parekh scam, the Global financial crisis in 2008, Satyam Scam in 2009, Covid Pandemic in 2020, and Now Russia and Ukraine war with the global Inflation crises.
The History of these events and many more, tend to drive home the
lesson that the world has become too complex and events are unfolding too
suddenly.
The Individual Investor has stopped believing that he can manage his
own money in the stock market. Then Investor Moved to Managed Money or Invest
in Mutual funds, Investment link Insurance plans, Real Estate investment
trusts, Post offices and Banks, and Many More.
The Investor never comes to the stock market. But will the
Individual investor handle his Investment? yes or No
will he be able to sort out the market cycles and other
problems?
Without an adequately compensated advisor to help with selection
and discipline, the unguided investor can't manage his own money.
Unguided investor can not control their emotions of greed and fear of
Market cycles & made mistakes in their portfolio.
The Unplaned Investor will still throw his every count of money
into various products. When stock market crises, he will sell his portfolio and
feel more intelligent by downside risk protection.
When the market goes down and the interest rate of fixed products
goes up and the investor goes for long-term investment bonds and when the market
goes up to 40% hike from the bottom, the investor sells their portfolio and invests
in equity stock. This is that.
All asset classes are performing but individual investors' money does not
perform. Time is running out.
The Investor needs a confident, professional advisor, to keep him
on the right track. Make sure his portfolio with diversified and keep away
emotions with portfolio towards greed and fear.
Arth Prabandhan
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