If you are not investing in equity as an assest class, then you are doing a great damage to your financial future.

A Bitter Truth

Indian household have invested nearly 1 trillion dollars in gold and that is a destructive consumption. Had we invested this 1 trillion dollars in infrastructure (equity), India would be a different country. Every second household in USA invest in equity market but only 5% of us invest in Indian stock market.

Another Myth - Stock Market Is Very Risky

Risks are of two types, one is volatility and other is losing your capital or money. If you are investing in a company and that company goes out of business due to some or the other reason, there is actually lot of risk. But if you are investing in a passive manner means that if you are investing in the GDP of the country then your risks are mitigated. Indian GDP is presently around 2.5 trillion dollars and out of this, the top 50 companies constitute about 1.5 trillion dollars of the GDP, which is nothing but Nifty and Sensex.  So, if you are investing in the GDP of the country, you are always safe because nothing is going to happen to the GDP of the country and it will grow in long term. As and when the GDP of the country grows your investment will grow. It is as simple as that.

Correlation between the GDP and the index

In 2012, india's GDP was 1.25 trillion dollars and Sensex was 16000. In 2018 India's GDP is 2.50 trillion dollars and Sensex is nearly touching 35000. There is a direct correlation between the GDP and the index.  By 2027, the GDP is expected to be 5 trillion dollars at 7-8% growth rate, and if there is a direct correlation between index and GDP, Sensex may touch 70,000. 

Finally....

So, what do you say?? Is it not prudent to invest your long term savings in the equity market. The most important term here is LONG TERM SAVINGS. Please  don't expect any miracles from stock market in short term and only put your extra savings (the money which you don't require in short term) in the equity market.  I am sure a lot of wealth can be generated from long term equity Investments.

HAPPY INVESTING.....