Indian stock market today

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Indian stock market today

There has never been time in the history of Indian stock market which has been so volatile and dynamic to changes at the slightest hint of rumors. The volatility has even intimated some investors to the point of liquidating their investments in shares and securities and to secure them in more tangible and safe forms like gold, real estate, government bonds, etc. Although, it is true that investments in the form of shares and private bonds carry a significant amount of risk and are vulnerable to risk. At the same time they are probably the most profitable business venture that one can begin with the least of capital. There are no cycles of booms and depression in the stock market, as short-term market corrections can even bring back a seemingly depressive market condition to economic boom.

Caveat emptor – the rule of stock market

Caveat emptor refers to the French saying which means that the customer should be beware before making the purchase. Replacing the word customer with investor the same rule applies to investments in Indian stock market today. There is no assurance provided to any investor by any stock exchange or any listed company that profits would be generated or earned without fail.

An investor is responsible for making the right investment decisions after taking into account the various parameters that denote the profitability of an investment. Further, the gestation period that is the time taken for profits to be realized should also be considered before making the investment. Some securities will generate profits in the form of dividends or capital appreciation only after the lapse of a significant period of time. While certain other can earn income, though less in amount in a short period of time.

Long-term or short – Making the right investment choice

The stock market is a place of choices. One determines their financial destiny based on their decisions. Crores of money can be earned or lost in a day based on the decision taken. The investment decisions should be taken keeping in the mind the financial goals of the investor. Some investors may seek investments as a place to store their idle funds which can later be liquidated into cash or cash equivalents for funding their running businesses.

For other investors or most of them the share market gives a regular stream of income. They earn from the profits from selling securities at prices higher than what they were purchased for. However, short term dealings involve high risk since anytime the market can crash and all investments can go waste and turned to nothing. Long-term investments in a way are insulated from market corrections since the stock market is bound to bounce back to normalcy after any economic disaster. The bottom line is that an investment, whether short-term or long-term should be taken only after charting proper financial goals.