Unraveling stock market for the common man with AI

It’s a harsh reality that only 2–2.5% of the Indian population are investing in stock markets, which is very low compared to other developed countries. Moreover, as per a report by SEBI, almost 50% of the DEMAT (Dematerialization of electronic shares account) accounts have never been used and this difference lies because the young adults(18–25 yrs age) of India are barely touched by investing in stock markets.

Reasons for low Investment

Here are some of the reasons behind the low number of retail investors in India.

Lack of Knowledge and Awareness:

As most people are not aware of the stock market, they don’t know how much return they can get by investing in stock markets.

Even if some are aware of stock markets, they don’t have enough knowledge about the process of how to invest in markets and the risk factors associated with it.

Reluctant to take risk:

In India, most people are conservative when it comes to taking risk in investing. Risk has been always associated with the stock market, no matter how much you study about it or how fundamentally strong a company is. The risk involved in the stock market stops these people from investing.

Myths about Stock Market:

There are some relatives in our family from which you might have heard about the huge loss they suffered by investing in share markets. Many people do not invest in the market because they follow the famous investing myths prevailing in the society.

• Investors who invest on their own are really talented and highly skilled with tech and finance.
• Investing on your own is considered very risky.
• For investing, you need very high capital income.

Inclination towards physical assets:

As traditionally followed in India, people still consider investing in Real Estate, Gold, Land, etc as the best option. As people consider investing in a village land or buying jewelry from a nearby store as a simple process rather than investing in the stock market, as for the stock market they will need an internet connection, computer, etc which is a complex process for many of them. This tendency to invest in physical assets has a great impact on investing in the stock market.

Unwillingness:

“I don’t have time”, as said by everyone when you ask them to invest. They also are very busy with their work and delay investing in the market, considering they will invest in the future.

Why Investing is beneficial?

Surely when it comes to investing there are several benefits of it like:

• Ownership stake in a company you buy stock in.
• Chance to grow your money.
• Take advantage of the growing economy.
• Stay ahead of inflation.

As we are mainly discussing young adults, if they start investing at an early age then they should start long term investing in stock markets. According to research, long term investing in the stock market is mostly considered profitable. As in a long period you get enough time to learn about the market and trends in it. Long term investing provides us with diversified portfolios and also the power of compounding works well in the long term.

Not only you will gain money and profit but you will also learn and gain knowledge about the markets and about the companies you have never heard of. You will discover new fields to invest.You can start with no knowledge but when you get in the larger picture, you will know how much fun investing is and it surely is like a roller coaster sometimes.

How to start investing?

So now as we know what are the problems, that are stopping us from investing and why we should overcome this and start investing in stock markets. So here comes the next question how can we start investing and optimize risk factors to gain profit at an early stage of investing.

There are few platforms in the market that can ease your process of investing. So, recently there is a platform launched named Dalalstreet.ai, which works on a very innovative idea.

Dalalstreet.ai is an Al fund manager platform to manage all your equity funds. Dalalstreet.ai works on a concept of LSTM and collects all financial information, news, trends, etc and provides you with the best stocks to invest in, like Dalalstreet.ai will send you notifications for buy and sell call according to the current market conditions. Basically, if you are new to investing or you are having problems in selecting your equity funds, like when to buy/ sell your equity stocks, then this can be a good platform to start investing. As along with the recommendation, Dalalstreet.ai connects you to brokers also so that you can make all your trades from the same platforms only. Users on Dalalstreet.ai are provided with an initial 90 Days free trial, which can be really helpful to see the return values of your investments. The reason why I prefer using Dalalstreet.ai is News Sentimental Analysis that improves the accuracy of the recommendations.

Conclusion

To summarize, I want to say that young adult groups like college students, new employees etc should start investing because if you start trying your hands on investing now at this age, then , by the time you reach 28–30 age, you will have some resources which can prove really useful in long term. What’s more, investing is a thing that you can do alongside your other work and gain extra income. Not to mention that it teaches you a lot about global economic scenario.