Equity market is not a casino!

Recently, I received a query from a person

The query ~ I have withdrawn rs 50,000 from my GPF (General provident fund- provident fund for government employees), How can i double it within one or two years .

This is the attitude that most of us carry towards equity markets. It's treated like a casino which can make you rich over night. Once  you loose your money and burn your fingers , the episode of bad mouthing that equity " investing " starts.

First of all ,

Do not enter into market with any money that you may need in the next 5 to 10 years ( yes five to ten years ..not a typo).

Use NPS tier- II, Equity or Balance funds as an investment tool for your hard earned money.

Prefer the systematic investment route and avoid investing in bulk unless you are there to stay for more than a decade. ( have a wide spread of your SIP over years. This reduces the risk and returns also , of course)

Do not expect extraordinary returns from equity like 100% gains every year. A 15-20% p.a should  be a realistic expectation on the higher end.

and finally, I have no direct answers for the query that began this article!@@@@.

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