11 August 2021
Money is the one of the main reasons of our survival. Not holding enough of it is the bane of our existence. It has been around long enough for it to be available in abundance. The history of buying and selling goes back to the time when people from Aztec used golden dolls to buy things they liked. While the ancient Egyptians used ring money as an exchange for goods.
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It is the most common form of exchange in the modern era and ties everything from a pin to forgiveness of a sin or buying of ideas. It is easily available today. Furthermore, it helps generate environments of your choice, from pleasant to uproar and peace to pandemonium. It makes everything possible, but it requires uniformity to exist. Money is the alumni of success. The more you earn it in the corporate world or as an entrepreneur, the more successful you are in your field. What’s more important is that most of us are capable of making a lot of money. Most of us succeed, but seldom find a way to save it or invest in a place that could bring help for our future. Spending, and unwanted expenses, has a lot to do with our thanklessness with the stock exchange. People refrain from investing in the stock market. We are a population of 1.7 billion. Out of the 1.7 billion people, only 2 crore people own stocks and the 1.5–2 crore people have invested in mutual funds and SIPs. The ground reality angles at keeping money in a credible bank account or holding cash no matter what, because of the very fact that a new scheme getting introduced anytime will prevent/invalidate their hard-earned money for exchange or being encashed. The sentiment still exists on the ground. Mainly because of two reasons:
Also Read - Best Investment Options to get Regular Monthly Income 1. Investors don’t believe in the market “catching pace” any more: Since the influx of smartphones and easy internet connections, the global investors have had the opportunity to flock around investors using the technology. Whatever the news is on the stock market, an average Indian will not trust a company with their money. The reason being, lack of sentience.
Most of us know that a trusted Indian tech company or the Food Delivery giant is opening for public investments, but most of us also have that one relative who have “bet” all of it in the stock market and lost all their possessions. Hence, the story gets shared generation after generations, one city to another, one person to their close kins and friends, before it takes shape of a myth.
Investors, before anything else, need to make it a point that it is safe to put their money in their idea with a clear picture of the future. By educating the masses withholding money due to the mythical scare that money is always ‘wasted’ in the share market. That it is okay to invest if you have a little money to spare and earn interest.
2. Issue of awareness By and large, the issue is more complex than it is seems on the surface. An average Indian thinks investing is risky, therefore, why to even think of knowing the market where losses are talked about more than the gains. Stock market is a cesspool of losing your money, let alone investing in fixed-income securities that are safer and in some cases, inflation-adjusted. The lack of awareness shows that Indians tilt towards fixed-deposits for safety. Fixed-deposits are the instruments of fixed-income securities. They have been the most primary clampdown for an Indian investor who, at times, don’t even bother to look at the interest rates as long as the money is in a trusted bank or financial institutions. The lack of awareness is not only limited to FDs, it is more than that. People do not know how to invest. Which route to take when they wish to save money. Even if they end up earning huge returns, they would not know what to do with that money. All in all, the lack of objective puts a lot of small investors in the back seat. When it comes to investments, governments have been encouraging the citizens of the country to look at investment as nothing but saving money for the rainy day, and it has been successful at doing that. Securing your money with a Government-backed investment strategy is been around for many years. The post office scheme, for example- People have been trusting the post office with their funds because it is easy to invest and offers liquidity. The interest is competitive, and your money is safe until it reaches maturity. These are also known as Public sector bonds.
Public sector bond is nothing but a nomenclature for Government bonds that are debt securities introduced by central or state governments when they are in need of funds because of various reason. The reason could be development, new projects, need of capital. Public sector bond is a covenant between the issuer and the buyer. When you buy a government bond, you are already told the percent of interest you will receive for the period of time your bond stays with the issuer. In this case, it is the government that uses your money to fund their projects. In return, they pay you annual and semi-annual interest. With the longevity of anywhere between 5 and 40 years, Government bonds offer maximum security to your investments and is considered to be one of the best forms of secondary source of income which was recently made available to small-time investors.
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