business paper finance decision

Hello everyone

So I keep writing on Quora about topics related to finance, and I got one question from a reader.

How much can a person earn per month through stock market investment if he or she has invested their whole life savings and never withdraws it?

Although this question doesn’t have all the information, ill try to answer this to the best of my ability.

Firstly, I am from India so the average savings of an Indian throughout their whole life can vary significantly based on factors such as income, lifestyle, expenses, and economic conditions.

So I checked Google for statistics, and this is what I got:

Can you see it?

57% of people have less than Rs. 5,000

and only 4% of Indians are able to save more than Rs 5 lac.

So considering this data, let’s assume you have saved Rs. 10 lac in your life and decided to invest this entire amount into the stock market.

Now let’s check what is the success ratio of people who invest in stock markets. for this, I checked Google again.

And I found out that according to popular estimates, as much as 90% of people lose money in stock markets, including both new and seasoned investors.

Now let me assume, that you are a seasoned investor and know how to pick stocks, how to identify trends etc, so how much will you make in the long run?

Don’t think, am going to check on Google for this.. because even Google doesn’t have an answer for this.

Why so?

Because you may be able to double your capital in a single investment, or even lose half of it, depending on your ability to understand the dynamics of the market.

You may be able to make 1 lac or more in a month, or you may lose the same amount every month, depending on your ability in money management.

You make be able to make an ROI of 25% or more a month, or you may lose more than 25% of your capital on a single trade, depending on your risk management skills.

But I am not going to end this with a vague answer.

I am going to conclude this with a statement from the late Mr. Rakesh Jhunjhunwala ji:

“If I get 18% return, I am a King If I get 21% return, I am an Emperor.”

So you can get anything around this rate only.

So I hope I was able to answer your question.

thank you for reading

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