Myth vs Reality of Investments in India: Truth, Risks, Returns & Real Calculations
Myth vs reality of investments in India explained with real calculations, pros & cons, risks, returns and mistakes investors commonly make.
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Myth vs Reality of Investments in India: The Truth Nobody Explains
Most Indians don’t lose money because markets are bad.
They lose money because they believe myths instead of understanding reality.
At GrowBhav, our mission is Financially Fit Bharat — and fitness begins by separating noise from truth.
Let’s decode the biggest investment myths vs reality, with real numbers, not motivational quotes.
Myth 1: Higher Returns Mean Better Investment
❌ Myth
“If this investment gave 25% last year, it must be good.”
✅ Reality
Returns without understanding risk are meaningless.
📊 Calculation Example
Investment A: 25% return, 40% fall during bad years
Investment B: 12% return, 10% fall during bad years
₹10 lakh invested for 10 years:
A (volatile): Emotional exits → ₹22–24 lakh
B (stable): Stayed invested → ₹31–32 lakh
📌 Reality: Consistency beats excitement.
Pros: High returns look attractive
Cons: Panic selling destroys compounding
Myth 2: Fixed Deposits Are the Safest Investment
❌ Myth
“FD is safe, market is risky.”
✅ Reality
FD is capital-safe, but purchasing power is not safe.
📊 Calculation (10 years)
FD return: 6%
Inflation: 6%
₹10 lakh today → ₹17.9 lakh after 10 years
But real value ≈ ₹10 lakh only
📌 Reality: No growth = slow financial death.
Pros: Stability, predictability
Cons: Wealth erosion after inflation & tax
Myth 3: SIP Guarantees Wealth
❌ Myth
“Start SIP and you’re set for life.”
✅ Reality
SIP is a method, not a guarantee.
📊 Calculation
₹10,000/month SIP for 20 years:
At 8% → ₹59 lakh
At 12% → ₹1 crore
Miss discipline / stop midway → <₹40 lakh
📌 Reality: Time + behaviour matter more than the product.
Pros: Disciplined investing
Cons: Wrong fund + poor patience = poor outcome
Myth 4: Timing the Market Creates Wealth
❌ Myth
“I’ll enter when market crashes.”
✅ Reality
Even professionals can’t time consistently.
📊 Calculation
₹10 lakh invested for 20 years:
Stayed invested: ~₹67 lakh
Missed best 10 days: ~₹32 lakh
📌 Reality: Time in market > timing the market.
Pros: Looks smart
Cons: Missed compounding opportunities
Myth 5: More Products = Better Portfolio
❌ Myth
“I have MF, stocks, ULIP, crypto — fully diversified!”
✅ Reality
Too many products often mean no strategy.
📊 Reality Check
10 overlapping funds ≠ diversification
Asset allocation ≠ product collection
📌 Reality: Simplicity wins in the long run.
Pros: Illusion of safety
Cons: Tracking failure & underperformance
GrowBhav Perspective: The Real Investment Truth
A financially fit investor understands that:
Investing is boring, not thrilling
Wealth is built slowly, not suddenly
Behaviour matters more than returns
Protection comes before growth
Markets don’t reward intelligence.
They reward discipline.
SEBI DISCLAIMER
This content is for investor education and awareness purposes only. GrowBhav by RuppeeCoin is not a SEBI-registered investment advisor. This article does not constitute investment, tax, or financial advice. Readers should consult a SEBI-registered investment advisor before making any financial decisions.