Business & Finance
One of my friends was asking if it would be okay to invest in share market because the annual return on income from interest was lower than the current inflation rate.
He said his income from interest has gone down by 2% per annum. In other words he has lost more than 20% earning every year on his deposits within a short period of last 2 years and it’s likely to go down further after the last month’s demonetization.
I am not sure whether the rates will go up or down but I can only tell you that share market is like an ocean where one can sink even if he knows how to swim well and it certainly has no place for a newbie so I suggested him to stay away from share market if one cannot afford to lose money.
I suggested him that the best way to invest in share market is through an expert in mutual funds. Although mutual funds are no guarantee of profit but your loss or profit is averages out.
However, the investment in money plans is nothing but a gamble so further losses are not ruled out. Or should I say swim near the shores with your head above the sea-level and keep a close watch on tides.