How to make a crore in the stock market

My mom is a better investor than Mr X," is what a friend commented the other day. Mr X happens to be the Chief Investment Officer of a reputed mutual fund.

And in what way was her mother better?

Apparently, my friend's dad had given her and her mother some money and told them to invest it. My friend bought the units of a mutual fund (the one whose fund manager she was criticising) while her mother invested in some shares.

Her mother ended up with a higher return than she did. Hence the conclusion.

What my friend fails to realise is that in this bull run, everyone's mother would have made money. So this one-time fortunate investment in a stock does not make her a savvy investor, despite what the family thinks.

The essence of a good investor is one who not only knows how to ride a bull market but also a bear one.

I wonder by how much her fund units would fall in value when (and if) the stock market crashed. And when that happens, I would also like to see the value of her mother's investment.

What's scary is that individuals who have never set foot in the stock market want to suddenly dive in. I'm not suggesting that you ignore the stock market. All I am saying is that you should probably not enter directly if you not sure of your footing.

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