CHAPTER 1: FD Investment - Wealth Preservation or Wealth Destruction?
Open economies, access to global markets, ease of cross-currency transactions and liquidity has brought an abundance of global funds to markets. Over the last two decades, precisely after the IT boom, we have seen how the Indian capital market has evolved. In fact, till a few years back Indian equity market was dominated by foreign Money (FPIs) but now Domestic Funds have gained importance and their quantum now often counterbalance the trade volumes of FPIs. Too much liquidity and intention of making quick money has led to extreme volatility and uncertainty in Equity Markets and yes… Volatility and uncertainty are here to stay. One might think “Why not just simply Stick to BANK FD, Corporate FDs or Debt Mutual Funds and have peace of mind?” better let’s not even think of Equity. It is volatile and moreover, there are no assured returns. Why should I expose my hard-earned money to this uncertainty? What if I put my entire savings in Bank FDs? Is it possible to stay isolated and buf