There are many investment options available in the market. You can invest your money in Bank Fixed Deposit, to earn regular income which is risk free. Then why should anyone risk their money?
Do you know as per NSE India, the total number of retail investors are less than 3 crores, that means less than 3% Indians are venturing their money in Share Market. Which is very very less… right?
But in reality every individual is investing in Shares indirectly without even knowing that their money is invested. How?
Do you have an LIC or any other insurance policy?
If you are an employee, every month EPF or NPS is deducted from your salary.
Where this money goes? All the insurance companies will do the common thing that is investing in Shares. All the money that is collected as premium is invested in shares. At the time of maturity you will receive a lumpsum amount with an interest of 6 to 8% per anum.
The average return on these investments are around 15 – 25% where as you will be given a marginal interest of 8% since the retail investors are more worried about the risks of investing directly in Markets.