The New ‘Rags to Riches’ Module

1869833672_59dbb9f11d.jpg‘Rags to riches’, the very phrase personifies a man who has earned millions out of peanuts, of course, through his hardwork, dedication and intellectual ability. But all that seems to change, as we move into the eighth year of the new millineum. Don’t be surprised if the simple guy living next door working on a daily 9-to-9 schedule becomes a millionaire. You are wrong if you are thinking of stories about the existence of a money plant. But, all the same, it’s quite possible that your neighbour discovered some new medium, wherein he can invest his money sensibly.

For years, the stock market has been wrongly perceived as a medium for gambling. But can you really call it gambling? Agreed that there are risks involved in it, but a simple transaction which involves buying and selling can’t really be termed as gambling.

The Indian middle class, which accounts for around 30% of the nation’s population, tends to invest their savings in fixed deposits, bonds or life insurance. But with prices soaring and inflation levels setting a new high every year, is that money invested enough to have a secure future? Is it enough to sustain a healthy lifestyle?

The answer is surely- No, considering the current scenario of inflation and with skyrocketing real estate prices. A 1000sq.ft flat in suburban Mumbai will cost you 70lakhs! That too, for a flat located on the outskirts of the city. Unless a person is earning more than a lakh per month, it is impossible to look after your own assets.

This is where the stock market acts as a boon for millions of people.The returns provided by the stock market in the past few years have been excellent. In some cases, returns are ten times more than an investment in some fixed deposit scheme of a nationalized bank. Of course, greed in this market may put an end to your so called ‘rags to riches’ dreams. But if a person invests sensibly and has a long term perspective, he will surely get outstanding returns.

So the next time you see your neighbour moving around in a swanky new car, don’t be surprised. Maybe he hit the jackpot by investing in some stock which you were not aware of. It’s about time we people comprehend the significance and magnitude of the financial market in the country, as a means through which we can think about ensuring a secure future.

Aparna Sen

[image by Seema K K]