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Why most Indians do not Invest in Stock Markets

In India, less than 2% of people invest in the stock market. There’s clearly a lack of participation over 1.35 billion population. But what is the reason that most Indians do not invest in the stock market? Let me tell you a similar conversation I had with my dad a few years back.

Dad: “Don’t even think about investing in the Stock Market. It’s one of the riskiest industry. One of our relatives became bankrupt due to the stock market. It’s an addiction. You’ll lose all your money”
Me: “So where do you make your investments?”
Dad: “buy gold and invest in real estate. They are the best investment options available”
Me: “But don’t you think the rate of return on gold is not that high and the real estate market from the last few years has provided negative returns?”
Dad: “Don’t argue with me. You don’t know anything.”

After this conversation I understood one thing,

most people don’t want to take risk including my dad. But is this the right approach to follow?

If people stop taking risk don’t you think they will achieve no growth in their life? Can you imagine what would’ve happened if bill gates got scared from taking risk? We won’t have Microsoft today. I won’t be writing this article on Microsoft word.

Same goes with our investments.

If we all will stop taking risks, we won’t lose anything agreed, but at the same time, we will also not gain anything. Be aware that life is all about RISK = SUCCESS rule. Without risk, there cannot be any success.

I guess many of you have heard about Warren Buffet. He started investing at the age of 13, what if at that age he must’ve thought that the stock market is too risky for investment. I guess then he would’ve also lived a mediocre life like most of us.

In a country like India, most people like to play it safe.

They do not even like to talk about money. Above all, most of the people do not have the awareness of investing in the financial markets. Indians have extensively considered stock markets to be a place of gambling.

Also whenever we talk about the stock market, people have unrealistic expectations of getting your money 100 times in stock. Let me quote a famous dialogue

“21 din me paisa double”

We are here to change this same perception about the stock market. And we believe that to change any perceptions always start from educating the youth.

Learn more about investing in stock market 

Faiz Zapdekar, CEO

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