Have you ever thought about investment in share market in your life? Or still, you have doubt in your head while investing money in share market. To invest intelligently in the share market one should be fully aware with an adequate knowledge of how the various types of shares and mutual funds have actually behaved under varying conditions. By carefully understanding this, one is more likely to meet again in one’s own experience through buying share. Instead, believing in someone’s word-of-mouth in order to buy share.
Indeed, the value of any investment is a function of the price you pay for it. A few years ago, I had the chance to invest in share market at a time when the share price was quite good for its shareholders. Today when I look at the share market, the market has been increasing by the capitalization of the companies listed on NEPSE is approximately US$ 17.3 billion. So, my point is that the time has now changed in terms of market size, market factor, investor perception, listed companies and capital.
However, technically the share market’s performance dependence on three factors, namely real growth (the rise of companies’ earnings and dividends), inflation growth (the rise of price throughout the economy) and speculative growth (any increase or decrease in the investing public appetitive for stock).
By researching and monitoring a dynamic mix of shares, mutual funds and bonds one can create a permanent portfolio that runs on autopilot and requires no further effort. Graham writes in his book the first approach called “active” or “enterprising” it takes lots of time and loads of energy. And, the second approach called “passive” or “defensive” strategy takes little time or effort but requires an almost stingy attachment from the alluring hullabaloo of the market while investing.
No matter how defensive an investor you are, but today values mean that you must keep at least some of your money in share market. Unfortunately, due to poor knowledge about share market people are not interested in investing in the share. After all, it doesn’t make a distinction between destructive thoughts and constructive thoughts. If we hold thoughts of poverty in our mind, the universe will return poverty to us. But, if we hold thoughts of wealth in our mind, the universe will return wealth to us.
When you simply work for yourself or for your personal gain your mind will seldom rise above the limitations of the undeveloped personal life, but when you are inspired by some great purpose, or take a risk while buying IPOs could make you financially sound.
Let us be a part of intelligent investors when it comes to buying various companies’ share. In the end, investment matters in our life.
Finally, I’d love to know what your opinion is. This post is for you to add-on to, if you like to do so. Stay safe and warm! Thanks for reading and have a great day!