Sensex Nifty & Economy

Question: Why should I be concerned about economy of the country ??

Answer : That's because if economy will do well then it's almost certain that my investments would also do well.

Question : Does it mean the economy is doing well, if the sensex/nifty is trading a record high ?  So what Sensex and Nifty going high actually mean ??

Answer : Stock prices (and so sensex and Nifty ) are driven by demand and supply, which in turn, are driven by how people feel about future prospects of companies / economy of the country.

But it must be remembered that such feelings are often driven by emotional biases such as greed and fear.

So while generally, you could say that a rising market means investors expect companies (and perhaps the economy) to do well in the near future, such assessments may nothing always prove to be correct.

Question : So what should I do, to take advantage of growing economy of our country ??

Answer : Simple, invest in Mutual Funds. When you invest in mutual funds you are actually investing in the economy of the country.

Read more at  ...... https://lnkd.in/fpEE7ZR

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