5 Stock Market Investment Risks You Must Know
While investing in equities, one should remember that its foolish to time the markets, instead give time to your investments. Check own risk-bearing capacity as well as the investing goals time for maturity of goals should be the time of maturity of investments.
As Warren Buffet quotes – Stock Market is a device of transferring the money from impatient to patient
Becoming a share bazaar investor lays down the attribute of being patient and letting the crashes, volatility, crisis,
bear runs pass as an investor till the time the investment maturity takes place and staying invested with patience.
What are the risks associated with investing in Stock Markets?
- Global Exposure: With technological updates and innovations, the world is getting smaller day by day. Bourses of all the countries and economies are inter-dependent and inter-connected to each other on a greater or smaller extent. Therefore, a small disruption or decline or deterioration in one of the economies may impact other economies and hence possibly create negative impact on one’s portfolio.
- Political Events: The national and global situations – Elections, Political Instability, exit polls, crime, chaos, are also the situations having negative impact on bourses
- Economic Events: Inflation, RBI Policy, rate hikes, national as well as international if found unfavourable, a bear-run or crash can decrease the value of investment.
- Lack of Knowledge: Investing in bourses based on the tips and not having proper and enough knowledge about it may land the investor or trader in serious troubles.
- Other conditions: Trade-wars, Financial Crisis, insolvencies, Crude oil prices, currency fluctuations, various internal factors, etc might create a negative impact.
Equity in Long Run gives sustainable rewards as well in terms of returns, hence there is no option but to invest in
Equity for a better future.