Harpreet Singh’s Post

Understanding Averages: Oversimplification in Statistics and Investing I often come across intriguing anecdotes that shed light on the nuances of data interpretation. One such story goes: "There was a statistician that drowned crossing a river. It was 3 feet deep on average." While amusing, it underscores a fundamental concept: averages can be deceptive if not understood properly. In statistics, the average, or mean, is often used to summarize data. However, it's crucial to recognize that averages can mask important details. Just like the statistician who underestimated the depth of the river, relying solely on the average can lead to misunderstandings and miscalculations. Now, let's apply this concept to investing. Long-term market returns are often discussed in terms of average annual returns. While these averages provide a simplified view of historical performance, they don't guarantee future success. Investing based solely on average returns can be risky and even disastrous. In the Indian context, we've seen instances where investors fell into the trap of chasing average returns without considering the underlying factors. Take the case of the technology boom in the late 1990s. Many investors poured money into tech stocks, lured by the high average returns of the sector. However, when the bubble burst in the early 2000s, those who invested based solely on averages suffered significant losses. Similarly, the real estate market in India has witnessed cycles of boom and bust. Investors who bought property during peak periods, expecting average returns to continue indefinitely, were caught off guard when the market corrected. So, what's the takeaway? Don't be blinded by averages. Instead, delve deeper into the underlying factors driving performance. Understand the risks involved and diversify your investments accordingly. Remember, past performance is not indicative of future results. In conclusion, whether in statistics or investing, relying solely on averages can be a recipe for disaster. So, let's approach data and investment decisions with a critical eye, looking beyond the averages to uncover the full picture. #Statistics #Investing #DataAnalysis

My COEP batchmate and me were discussing a YouTube video on election results, capital investments and stock-market sentiments. As the discussions went very interesting, I thought to put it on this platform. Here it goes : The guy in the video sounded like doing text book commentary on different scenarios, without giving his opinion with confidence. The video is not that important here. As you know, I listen to specialists, particularly Indians, who have thorough knowlege of Economy, Geo-Economics, Politics, Geo-Politics and Realpolitik. All these are inter-related for positioning a nation on combined strength. The foreign sprakers are generally influenced by Adam Smith on capitalism based economy or Karl Marx on socialism based economy. What the current Govt is following is, Sanatan Economics. It neither promotes concentration of wealth within select individuals nor offering all-out freebies to make the whole population lazy & non-productive. In addition, Indian economy is consumption and labour based, which cancels out recession or stagnation of economy. It is unlike export based economies, which are prone to sanctions and fail to deliver in competitive markets. Anyway, the subject is too vast to discuss on a chat ! Be assured, the current Govt is returning with full majority and with superior performance. Investments will skyrocket, both from domestic wealth creators, startups, unicorns and foreign investors. The stock markets are preparing for pre-4th of June corrections. So the dip in both BSE & NSE indexes is obvious. A fractional reduction in voter turnout wrt 2019 is just a narrative to justify the Dalal Street sentiments. Nothing to worry about.

For the longest time, I feared losses more than I valued gains. [1] The thought of losing even a small sum was enough to keep me out of the stock market. Despite knowing logically that long-term gains would outweigh short-term risks. [2] I would seek out articles that supported the idea of "safe" investments. Avoiding anything that challenged my comfort appetite like tech stocks or real estate. 📌 Well, these are nothing but classic cases of loss aversion bias. Behavioral finance biases are very real, and can keep us from taking financial bets early on. We think we’re making rational choice, but more often than not, our emotions hijack those. So, next time, you are deciding, ask yourself ⬇️- - Is this a rational or rather an emotional choice? What’s one financial decision you’ve made that was more emotional than logical? Share them in the comments!✍️ •••••••••••••••••••••••••••••••••••••••••••••••••••••••••• I help you understand economics, finance and career growth in simple words. Connect with me, Diksha Mittal, to get regular insights!☘️ LinkedIn Guide to Creating LinkedIn News India #finance #money #investment #economics #linkedinforcreators

I'll never forget the conversation I had with my friend Rohan about our savings habits. While I was struggling to save 10% of my income, Rohan casually mentioned that he saves over 30% every month! I was amazed and asked him how he manages to do it. That's when he told me that his family has always emphasized the importance of saving, especially since they live in a Tier 3 city. This conversation got me thinking - are there any other interesting trends when it comes to savings and investments in India? That's when I stumbled upon Fin One's latest report, "India's Financial Outlook 2024." The findings were fascinating! For instance, did you know that: - 42% of Tier 3 respondents save over 30% of their income? - Women are 2.7 times more likely to prefer insurance investments than men? - 72% of 18-21-year-olds prefer stocks as an investment option? These insights not only surprised me but also made me realize how important it is to understand our own financial habits and preferences. What about you? What are your savings and investment habits like? Share your story with me! And if you found this interesting, share it with someone who might benefit from these insights!

If you were to give one financial advice to your younger self what would it be? This was the one question that came to my mind while reading Ankur Warikoo's book, Make epic money. As children, our first encounter with money involves saving in piggy banks. However, as we grow up, one needs to transition to real financial planning. Unfortunately, very few among us possess that knowledge. While many are adept at earning money, the skill set of saving and investing remains a rarity. Only 27% of Indian adults – and around 24% of women – meet the minimum level of financial literacy as defined by the Reserve Bank of India. In a country with a vast population and a rapidly growing economy, it becomes prudent that we as a society develop financial skills and encourage the younger generation to cultivate a strong understanding of finances. Ankur does this beautifully in his book, and makes a concerted effort to bridge this knowledge gap. Here are some of the key takeaways, that I wish every youngster should know - 📌Your mindset matters: Achieving substantial wealth requires not just strategic financial planning but also a mindset shift towards money. 📌Gain financial literacy: More money alone isn't the solution; instead, focus on acquiring financial literacy, a crucial life skill. Implement the 50/30/20 Rule for budgeting: allocate 50% to basic needs, 30% to things you love, and 20% to savings (for investing). 📌Financial freedom: The purpose of money is to provide us with freedom—freedom over time, choices, and the way we live our lives. And worry not, there’s plenty of time for everyone, you just need to start somewhere. #ankurwarikoo #Book #Money #startinvesting

A Remarkable Turn: More Breadwinners Invest in Their Future In a notable departure from the norm, the last financial year, 2023-2024, witnessed a significant uptick in the number of breadwinners proactively investing their money to secure their future. This shift marks a pivotal moment in the Indian market, with a large number of individuals taking decisive steps towards financial preparedness. According to recent reports, approximately 3.37 crore individuals, roughly 2.6% of the total population, took the initiative to invest their hard-earned money during the fiscal year. This surge in investment activity reflects a growing awareness among people regarding the importance of saving for unforeseen circumstances. However, what's particularly noteworthy is the demographic breakdown of this trend. Despite earning less than ₹50,000 per month, a significant portion of the population, accounting for 66.6%, or about 2.67 million individuals, according to the National Council of Applied Economic Research (NCAER), chose to set aside a considerable portion of their income for savings. Yet, many among this group remained hesitant to invest the maximum amount of their savings. This shift in behavior underscores a newfound recognition among individuals about the need to plan for the future and safeguard against potential financial challenges. It signifies a departure from the traditional approach of living paycheck to paycheck, towards a more proactive stance on wealth management. Indeed, the last financial year marks a watershed moment in the financial habits of the Indian populace. As more individuals embrace the culture of investment and prudent financial management, they not only fortify their own economic resilience but also contribute to the broader stability and growth of the nation's economy. As we reflect on this significant milestone, it becomes clear that the journey towards financial security begins with small yet decisive steps. By instilling a culture of saving and investing for the future, individuals lay the foundation for a more secure and prosperous tomorrow. Let us acknowledge and celebrate the collective wisdom and foresight demonstrated by the multitude of breadwinners who have embarked on this transformative journey towards financial empowerment. Together, we chart a path towards a brighter and more resilient future for all.

EVER WONDERED! (FFT 2 ) Why the rich get richer and the poor poorer? We always say: AMBANI is way rich for us, why don't he just spend 150 crores over the Indian population, so that everybody would be rich The disparity between the rich and poor would be reduced, leading to increased GDP and all . But what if he actually does it, then would it a cure for poverty-related things? NO what most people don't understand is - it doesn't matter how much you make but how you keep it. Earning money doesn't matter how much it is, it is of no use if you don't know how to spend it.   Ambani could give 1 crore to an avg individual , but what do you think that average individual would do ? He would go for casinos , and elevate his standard of living by buying expensive things and all till he loses his money , thereby making him poor again. Financial literacy is important,  money earned should be invested in assets that would generate income, not the ones which gives no return on investment (until and unless u can actually afford it ) Ones, you earn enough, then you can buy things that don't give you any return. But do you think financial literacy is the only factor? (any guesses) STAY TUNED for the next part.

Have you ever seen time as money? very simple. your hourly value = monthly income/144. let's say your monthly income = 1,00,000/- 1,00,000/144 = 695/- Imagine you wasted the last full weekend: 16 hours wasted = 16 * 695 = 11,120/- Potential Income Wasted. To make it even more worse. Last 5 years, Because, you're stuck, wasting time on distractions, laziness, bad habits etc., 3650 hours wasted = 25,36,750/- The waste will be even more if you're earning more than 1L/m. Enough is enough. Take that ONE FINAL ACTION. Watch this video and take the decision to become a "First Millionaire" in your family. Earn 8.5 CR using Productive Millionaire Method https://lnkd.in/gCfjcfy9 It is running out of time. watch it fully and fill out the form. Let's earn 25,36,750 rupees back faster! India’s Leading Productivity Expert, Ramesh Yadav.

Wrong Notion on Indexation Removal Everybody is spreading this video. Chada ji is politician. He will give you worst example. In his example he quoted that property rates have increased by 6% year on year from 2001 that to for 24 years. If this is the rate, why somebody will invest in Real Estate. FD has been giving more returns, and it is not risky too. FD from ages has been giving returns from 5 to 8 percent from time to time. But no indexation has been applied to it. Does here inflation don't apply? It has taxation which can be as low as zero and as big as 30%. As it comes under slabs. For Real estate investment lot of analysis is required. People make mistakes in purchasing property. People invest in ultra developed areas which has no potential of further price rise. It is just like game of startup. Just like in startup returns are there in initial phase as risk is also there. In Real estate money is made in areas which are underdeveloped as risk is also there. Even share price of a listed company rises when there is potential of growth in terms of scale and earnings. You buy shares today at discounted price. Similar is the real estate. You buy in undeveloped areas which when gets developed give you returns. If you have a return of 13 to 15 percent on the property, Indexation will not affect you. Yes, people who have purchase property in between 2013 to 2020 may get impacted as that time Real Estate was down. #money #investing #india #delhi #marketing #digitalmarketing

Robert Kiyosaki, author of "Rich Dad Poor Dad," often emphasizes the importance of self-discipline in achieving financial success. Here's why he might have said that self-discipline is the number one differentiating factor between the rich, poor, and middle class: Financial Habits: Self-discipline is crucial in developing and sticking to good financial habits such as saving, investing, and living within one's means. The rich tend to have disciplined financial habits that contribute to their wealth accumulation, while those lacking discipline may struggle with overspending or failing to invest wisely. Delayed Gratification: Self-discipline enables individuals to prioritize long-term goals over short-term desires. The ability to delay gratification is often seen in wealthy individuals who are willing to make sacrifices in the present for greater rewards in the future. Conversely, those lacking discipline may prioritize immediate gratification, hindering their financial progress. Resilience: Building wealth often involves facing challenges and setbacks. Self-discipline helps individuals stay focused and resilient in the face of obstacles, enabling them to persevere through difficult times and continue working towards their goals. Without discipline, individuals may be more prone to giving up or succumbing to setbacks, preventing them from achieving financial success. Educational Pursuits: Self-discipline is essential for continuous learning and self-improvement, which are often keys to financial success. The rich tend to invest in their education and seek out opportunities for growth, demonstrating discipline in their pursuit of knowledge and skill development. In contrast, those lacking discipline may be less inclined to invest in education or personal development, limiting their opportunities for advancement. Overall, self-discipline plays a crucial role in shaping financial outcomes by influencing habits, decision-making, and resilience in the pursuit of wealth. By prioritizing self-discipline, individuals can better position themselves for financial success regardless of their starting point. #finance #financeeducation #financialfreedom #nseindia #rich #robertkiyosaki