He lost 80 lakh in the stock market. How he then built a business with 20 million subscribers

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“I lost more 80 lakh during the stock market crash of 2008, which opened my eyes. Before 2008, the markets were on the rise! While FD rates were 7-8%, the markets were giving a much higher return (2% return per month, around 24% per year). That’s why everyone started investing heavily,” Lakhotia said.

He said the friends would compete to see who would get the highest returns. At that time, investments were entirely based on tips.

“But when the crash happened, I realized I had no idea how the market works – how analysts assess a company’s performance and how they make stock recommendations,” he said. -he adds.

Instead of fleeing the market, he decided to learn how it works and recouped his losses.

He noticed that everyone in India likes to talk about the stock market and is curious to find and invest in the right opportunities, but they lack the understanding to understand technical details like entry and exit times. No wonder, despite having the highest labor force with decent levels of literacy, only a fraction i.e. less than 4% of the Indian population actually invests in the financial markets.

This journey of losing money in the stock market crash and getting it back in the markets became a solid foundation for which he built StockGro today.

StockGro’s Lakhotia follows some basic rules for investing

-Always diversify and hedge your portfolio.

-Use a top-down approach to determine which sectors will perform well and why, which companies in the sector are the most reliable, the company’s dividend history and the sponsor’s track record.

-Put a stop loss of 2% and more importantly a book profit target of 5% on all trades.

How people can manage their personal finances

Most people have their money management on autopilot. They save a certain percentage of their income (usually 10% to 20%) in a fixed deposit and spend the rest.

According to Lakhotia, the general rule is that after 20 years of work, your investment should provide you with enough annual returns to support your lifestyle.

Like other experts and market analysts, Lakhotia also believes that you should invest very early in life because at that time your appetite for risk is higher and the cost of your personal lifestyle is lower. – as you age and your family responsibilities increase, your appetite for risk decreases.

The StockGro CEO’s Money Management Mantra

50% – Expenses

20% – FD Savings

30% – Stocks, mutual funds

Advice for long-term investors

20% FD savings

30% investments in stocks/mutual funds.

In his opinion, invest in products that you love and that will be sustainable over the long term, regardless of boom and bust cycles.

So what are the sectors on which long-term investors should bet?

-Toothpaste and soaps, for example, are unlikely to die and will continue to pay dividends.

– The automotive sector and logistics will prosper and develop in the future.

-The banking and financial services sectors are set to grow with the growth of the economy.

-For long-term investments, choose good dividend-paying stocks that experience less volatility when earnings are announced.

Advice for short-term investors

For short-term investments, choose dynamic stocks in which investors see traction due to current developments in the company or industry, such as regulatory changes, new product gains, etc., that are changing perception future profits of the business.

Ajay, who is an entrepreneur at heart and an investor at heart, said that these stocks can be traded for as short as 7 days to 3 months with a strict stop loss.

“For example, the national logistics policy should transform the sector and provide many incentives. Leading high-tech logistics companies would benefit the most, driving up their stock prices,” he said.

He also cautioned investors and said that as the stock price rises, adjust your stop loss to 2% of the current price to ensure you remain profitable even if the tides turn.

StockGro, the Bangalore-based startup, was founded in January 2020. Focusing on Millennials and Generation Z, the company boasts of growing almost 2 times per month and crossing 20 million downloads of applications within 2 years of its launch in June. 2020.

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