REALTY STOCKS SCAM – WHO IS GUILTY THE DUPED OR THE GULLIBLE ?
Due to various Govt controls and and irritants, the prices of Real Estate Market are prone to all kind of manipulation in India. However it is also true that when prices are low/flat, then nobody in India would like to invest in Stock or Property Market. It is only when the Markets are at the peak majority of unique Gambling instincts of Indian minds drive them to invest in Stock Market or real estate etc. But when such people lose their money they feel cheated. In my opinion their complaints are not justified entirely becoz their motivation was GREED only then seeking a reasonable return. Actually expectations of decent/ reassonable return make you a prudent & calculative investor, while Greed induces to become Gambler/ Speculator only.
However, as earlier said Real Estate Market has two different components( Land & Building), therefore those who have made investments in the rights of land also need not to worry too much becoz in a billion plus growing economy, Land will remain the hottest commodity. Land prices will bounce back to touch not only the previous levels but will also surpass them in many cases. But those people who bought flats/ apartments only with no rights on land at the astronomical prices may consult their astrologers for some magic.
Contribution from Bhavesh Shah, Sales Trader
Investors themselves are responsible, they do not study facts and believe on info gathered from various sources like media, newspapers or may be friends, which all time cannot be true.
Moreover retail people are last ones to get in the markets as well last one to exit the mkts.
Just watching TV channels does not mean you have gathered all info and start investing, you need to u/stand biz cycles of Industry, ,trends, mkt study etc before investing as INVESTING IS AN ART.
Contribution from Prasanna Jha, VP with the world’s leading bank
Think this is responsibility of the small investors, primarily. Driven by the greed of making a quick kill, they have invested in all and sundry IPOs (including the answerers, by the way). Small investors start investing in the stock markets direct on advice of their colleagues/ friends and others who have no idea of stock markets. Naturally, they invest almost at the peak, having seen everyone else gaining from the stocks. And hence, suffer the highest loss.
There is this big institution of small investors called Mutual Fund, which pools in individual money to invest as an institution and has the expertise of investing knowledge. Discounting the cons of MF investing, think small investors will be better off using the MF route for investing in the markets. The gains may be marginally lower as compared to direct investing but the downside also is limited, as Fund managers of MFs are able to churn portfolio and sell off something which is losing value.