One-Day Workshop on Financial Literacy “Wealth Creation though Investing in Stock Markets – the Common Sense Approach”
How to invest in stock markets? All you have to do is trust Warren Buffett and understand his idea of investing. To explain the procedure, Financial Literacy Expert VarunMalhotra, who is also a keen Buffett follower, shed light on the simplest way of investing in the stock market. This will not only help you gain wealth at a faster than usual rate, but also secure your financial goals. He said this in the light of One-Day Workshop on Financial Literacy “Wealth Creation through Investing in Stock Markets – the Common Sense Approach”, conducted by the Seedling School of Law and Governance, Jaipur National University on 23rd August, 2019.
Malhotra says that there are two types of risk. One is volatility, and the other is the actual risk of losing money. He explains this by saying that investing in a particular company does involve risks, because it may or may not go out of business however, if one invests in a basket of fifty companies, the risk involved reduces to a great extent.
Explaining the difference between trading and investing, he said the word investment by definition means investing in something and believing in its future cash flow, while trading involves speculating on the prices without any fundamental backing of a rise or fall in the prices. To really put the first time investor at ease, he further suggested how much a 20-year, 30-year and 40-year old individual needs to invest each month to kick off and continue with his or her investment journey. Interestingly, he reveals that all a 20-year old needs is Rs 2500 each month to secure his or her future and retire as a crorepati. The expert also explained why investing in property is not always a good option.
The workshop covered personal finance topics as diverse as setting up a budget, dealing with debt, types of bank and investment accounts and their respective features, taxation basics, how pensions work in India, types of investment vehicles, types of insurance, and how to objectively evaluate the purchase of a home/investment in property, among other related topics.
The workshop primarily focused on how to create and maintain a reasonable budget given your income level. It covers the main pitfalls of improper budgeting and will show ways to stay on track.