Indians have lots of opinions about many things in the world. That is why they do not always go along with the crowd. One such thing is their idea about Share Market. We listen to the people in the other countries talking about share markets. But in India, there is a lack of attraction in that particular area. There is less participation from India in the share markets. The common people of India are the least affected by the happenings in the share market.
That is why many are not aware of what is going in the share market. So here we have listed out the reasons why people in India don’t Invest in the Share Market.
Table of Contents
1. Myths are accepted as truth
From childhood, Indians keep on hearing stories about how a person has lost a fortune in the stock market. Many melodramas in India show a rich family losing all its wealth because of the stock market. So because of these matters, Indians have a bad opinion about the share market. They do not want to invest in it because they fear that they will lose all their money in it. These are the stories that have become myths that are passed on from generation to generation.
Also, many Indians think that only smart people can invest and become successful in the stock market. That is why the common folk do not want to invest in the share market.
2. No risk-takers
The risks involved in the stock market stops many Indians to think about it seriously. They ignore the studies that show that stock markets are safe and not as risky as it seems. Do you know that most conservative Indians avoid risks by not venturing near the stock market? They will only think of investing if they are guaranteed that there is no risk 100%. But the stock market does not work without the risks. We have to keep in mind some important things to invest in that is all. Yet the common folk do not like the idea of taking a risk with their money.
Many people in India are unaware of how the stock market works. They do not know how much they can get when they invest. Many common people in India need to get educated on what the Stock market is. It will take a lot of time and effort. That is why still there is a lack of awareness in India. Most of the people in India have not invested one single time because they do not know. There are also no lot of mediums in India where they can learn about the share market easily. That is why the share market is unpopular in India among the common folk.
4. No security
In the past, there are several cases of scams that have happened in the share market. So whenever a person in India hears about the share market they will remember the scams. Over the years the scandals of the people like Harshad Mehta and Ketan Parekh has led the people to believe that the share market is the place of scams. Now because of the Securities exchange board of India, there are fewer cases of share market scams.
But it cannot make the people believe in the share market. There are still many people who try to cheat innocent people in the stock market business. So people think that they are better out than inside it.
5. No capital
In India, many people are below the poverty limit which means that they have to work hard to eat a single meal every day. So this condition makes it hard for many people as they do not have the money for basic needs. Then thinking about investing in the share market is only a fantasy for these people. This is one of the important reasons why many are not investing in the share market because they cannot.
6. More preference is given to physical assets
In India, people love to invest in gold and land. That is why they do not like to think about investing in the stock market. Also investing in gold and land is like a tradition too and it is hard to break this tradition. It is simpler than investing in the share market too. So this is also a reason why people in India did not show a preference for investing in the stock market.
These are the six reasons why people in India do not invest in the share market. If more people get to know about the benefits of the share market, then they may think about investing in it.