WHY UNDERSTANDING MKT VALUATION MATTERS

THE cyclical nature of financial markets is a valuable lesson to learn when training to be an investor.

- RAJAS KELKAR

There are no courses that will teach you to be a good investor. There are experts, and numerous videos online can guide you on what to do. Financial advisors and stockbrokers are dishing out research reports. However, the decision you make is more formidable if you base it on your own effort than on someone else’s.

In the world of investments, equity assets must be the basis of your core wealth. In India, more than 70% of households have real estate and gold as their core forms of wealth. Equity is a very minor part of the wealth creation plan. Yet, over the years, benchmark indices like the S&P BSE Sensex and Nifty 50 have generated returns unmatched by any other asset class.

That does not mean you jump in and start trading in options like many have done. ‘Getting rich slowly’ is a strategy espoused by the likes of American legendary investor Warren Buffett. His life is a testament to the power of investing in creating wealth.