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Myth-busting Facts about Stock Market Investing.

                 Myths around Stock Markets

•There are various myths around the stock markets.One must not believe those and should analyse everything even before investing a single penny of his/her hard-earned money.

•Myth-#1:People think that stock investing is                         much like gambling.

This myth about the stock market is often spread in the form of well-intentioned but misguided advice.Concerned by some stories of losses,people usually advise others to stay away from the markets.Let's face it:Stock market investing is not gambling.While gambling is concerned with luck,stock market investing largely depends on various factors.Unlike gambling,if one can study these factors and carry out a proper analysis and solid research,one can easily make one's investments profitable.

•Myth-#2: People think they can become rich                         overnight by stocks.

By looking at ace-investors in our market,some people think they can earn a ton money from stocks within a year.But,this is not true.Every stock market investment requires time to grow.We must not hurry.In order to get healthy returns,one must follow the principle:
'Buy and Forget'.
                             Sustainable Rise
•Myth-#3:You need a lot of money to invest in                         stock markets.

This is a wide-spread perception that you need a ton of money to invest in stocks.This is not true.There are companies listed in Indian Stock Markets having shares value as low as ₹5.You can also invest in stocks via Mutual Funds using financial tools such as SIP(Systematic Investment Plan) with low deposits upto ₹500 and start your investment journey.
•Myth-#4:We must invest in large companies only
                 as mid-cap companies are volatile                          stock prices.

While investing,we must take care to diversify our portfolio so that the risk factor is low.If we carry out proper analysis and invest in a company having strong fundamentals,it is pretty certain that it will give multibagger returns.It has nothing to do with being mid-cap or large-cap.A time was there when even today's large-cap companies were penny stocks.We must not listen to others advice in stock market.We must carry out our independent research and analysis.
             Bajaj Finserv Multibagger Returns

•Myth-#5:Cryptocurrency is better than Stock                       Markets.

Cryptocurrency is the new thing in the town and everyone is amazed at the amount of humongous returns it has offered in the last 5 years.However,the fundamentals on which it is based are pretty shaky.It can be created anywhere by anybody having some experience in the field of information technology.It has no regulatory bodies.Most of the countries still don't accept it.Moreover,it has not been able to explain its mechanism to the investors properly.If you can't understand something,there is absolutely no point in putting your resources there.Till the time these questions are not answered,stock markets along with money markets remain the only place where you can make a buck legally.
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Disclaimer:We are not certified financial experts but the claims made in the blog are totally true.We will not be responsible for any kind of financial problems based on reading this blog.Investment in securities(stocks)market are subject to market risks, read all the related documents carefully before investing.

This is the 4th blog in the Finance series.

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