Techgurll

Investing is critical to what we want to achieve. It helps in creating wealth for us and for generations to come. And like any other thing, it is also a skill that can develop. There could be multiple reasons why people don't invest. The top of it could be  'affordability.' In India, we have a population of around 136 crores, out of which approximately 5.95 crores are tax-paying. It is safe to assume that these are the Indians who can afford to invest, which is 4.37% of the population. These are people like you and me. As per NSE, there are around 2.99 crore active clients as of 30 November 2021. The 2.99 crore active clients in a market of 5.95 crores indicate a market penetration of approximately 50%. The number of retail investors has increased by 20 percentage points in the last three months and is rising. But it is still tiny compared to the population of India. Below are some primary reasons that people don't invest, and resolving them can help boost the investments by retail investors.

1. Awareness: Investing is not an instinct for a lot of us. As such, a lot of people don't even think about investing. Investing seems a term associated with big corporates. They don't know that something like this exists.
2. Laziness: Yes, a lot of us are lazy. We know about investing, read about it, and know we should do it. Still, we don't. I don't think there is an excuse for laziness.
3. Risk: Investing, like any other thing, involves risks. In general, the risk component increases along with the return. Markets are volatile, but strategies to mitigate risks and build wealth exist. One of the best and most successful strategies is investing in fundamentally strong stocks for the long term (a good number is five years) and reviewing your investments every quarter.  There are more strategies and avenues to invest as per your risk appetite, for example, mutual funds, SIPs, etc.
4. Waiting to invest: Many people think they will start investing once their salary reaches a specific mark or once they reach a certain age. Waiting may not be the best approach. Like any other thing, investing is a skill that needs time and practice to develop. Start early, start small. This way, you have enough time, and you can control your risks.