Generally, new investors do not understand the difference between trading and investment, they do not know what is the basic difference between mutual fund and share market. Such people jump directly into the stock market in the name of investment. They buy any stock on the opinion of other people, remain in little profit for 2-4 days and then go into loss. Then they catch your ear in the name of investment. They don’t even know that they were not investing but betting.
Why 90% of people lose their money
This happens because such people buy the stock at a time when that stock is very much discussed, its price is increasing. Such people bid on the running horse without understanding the trader’s mindset and investors’ mindset, that is, they keep buying the fast growing stock and when the selling starts in that stock, when the traders start squaring off their deals. The stock falls down in such a way that you do not even get a chance to recover and the operators do everything possible. Operators are the big fish in the ocean of the stock market, who are always on the lookout for small fish. They want that novice people come to try their luck in the market and they lick their entire accumulated capital. In such a situation, the big question arises as to what to do.
Start with mutual funds, not the stock market
Start your investment journey with mutual funds. Now you will say that the investment of mutual funds is mostly done in the share market only, how is it different from the share market. So the answer is that mutual funds have fund managers (in active funds) who are very experienced. They invest your money in different shares according to their own and for this some money is also taken from you. The risk is reduced in this type of investment. However, in passive fund (Index fund) you do not even get this charge, because there is no fund manager in it. Warren Buffett, the world’s biggest investor, has also considered index funds better than active funds. He has also shown this by proving it.
How to start investing in index funds
The method of investing in index funds has also been explained in a very easy language. Which you can understand by reading only once. There is no need for any degree or diploma for this. For this, click on the link of this article given below, and start your investment journey afresh.
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