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You are still helping by fearing and staying away from equity investing !!!

Yes it is true. Retail investors help markets and its participants more by staying out than by investing in equities itself. Hence optimists like me, do not mind retail investors doing everything else other than investing in equity markets. 

Let me tell you how it helps us.

1. Keeping your money in low interest bearing savings accounts will help banks raise cheap funds. In such a way you earn taxable 9% per year in fixed deposits and 4 % in saving accounts, whereas we  continue accumulating multi lac crore banks like HDFCBank, AxisBank, ICICIBank, SBI and like, which are up by any multiple between 3.5 times to 11 times since December 2008. Also, by paying all your EMI installments on time would help private banks stay out of trouble and we shall continue investing in banking sector with of course proper investment plans and goals. This is something retail investors lack and often end up burning their fingers.

2. Retail investors are more or less out of the markets. Hence what better options are available for them to invest. Let me guess, commodity is one of the asset class and I am sure, people must be having huge chunks of Gold as investments. Gold has bought you 2.8 times your invested value in past four years however, stocks of Titan Industries which sell gold to you is up by 7 times during the same period. Thank you on that count too.

3. You must invest in either Gold or of course the real estate. We Indians believe in physical assets, something which is to be seen, and felt. Irony is that you would keep emphasizing your belief in God which I believe has never been physical till date. But again I would not mind you investing your money to buy real estate, taking mortgages from HDFC Ltd or LICHousing Finance and like. How else we would have made anything between 2.7 times to 5.8 times in previous 5 years. Also when insist on using best construction material including cement, sanitary, and so on, you do by something real where else we would make anywhere between 1.9 times tto 4.5 times. Also don't forget to complete your house by using high quality paints from companies like Asian Paints or Berger PAints. Asian Paints has soared by 5 times in four years. 

4. You always want to be insured. Any thing can happen to you in place like India. This makes our world interesting precisely we think different from each other. You are happy buying insurance and we are happy owning stocks in companies that sell you insurance like Bajaj Finserv which are up 6 times in value in past four years.

5. You must also follow your heart and shop in malls. This allows us to invest in companies like pheonix mills, grasim, arvind etc which are up by 4 times in past four years.

6. Dont forget to own a luxury vehicle from your hard earned money. Why invest in stocks that make companies rather upgrade your car or bike model. Stocks like maruti, hero moto corp, bajaj auto are trading 5 to 6 times their value 4 years ago. Eicher motors which manufacture Royal Enfield is trading 12 times its value in said period.

7. Every step you make in your life is connected with equity markets. Be it hospitals where you visit for your treatment, cinema theaters where you visit for your entertainment, cigarette brands you smoke, airlines you travel, pizza s you order, television channels you watch, medicines you take, all have positive effects on equities which offer you way more better returns than just locking your money in relatively less liquid assets like gold, real estate. 

We invite you over to our side in 2015 but still love you for choosing instead to be loyal customers of the business we own. Now its up to you to decide who you would rather be - part owners of Indian Companies or jsut their loyal customers. 

Happy investing, Happy spending

Keep walking .. Keep investing ....
















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