They attracted mutual fund investment by giving them benefit. Govt aim is not to shift money from stock markets and back to banks. Banks already have enough of money. The more money stays out of FDs and move to market, less pressure on banks as interest outflows stops. Govt is aiming to reduce or discourage people from risking their life savings to more safe zones. America allowed people to use their money as they want. Result is 90% Americans today are under huge debts and can't even pay on time. Result: banks went down the drain. It was America that recovered with drug money. We are India and we have made our lives on savings. We can't go gaga over few years of stock market gains no matter how good these are and put a big portion into a machine that burns money at faster rate that it provides.
People will say, this is my money and I have all the right to where I use it. But at same time when people will start committing suicide or start leveraging their position with the money they don't own, real problem will start. After 2008 financial fiasco, Americans in large numbers died or shifted to cheaper places lead to fall in labour. America and Europe somehow migarted cheap labour in large number from Asia and get back on track. Who will give us cheap labour if a turnmoil hits our economy? No one.
So Govt ko har taraf sochna hai. Ab ghar ke bade bhi yahi seekh dete hai ki land or gold mein zyada lagayo aur markets mein 25% se zyada nahi. But trends are showing people especially from middle class are blindly putting money in markets unaware of fact that the same markets will correct 50% in next 5-7 years and they will then take a pledge not to invest back in markets again.
Har cheez apne nazariye se nahi dekhni chahiye. Agar aage gadda hai aur koi tumhe rok raha hai toh tum apni freedom aur liberalization ka use larle agar khud ko gairna chahtey ho toh beshaq jayo khade mein.
0.01 se 0.02% STT hone se gareeb toh ni ho rahe log. 5% log bhi actual mein profit nahi bana rahe markets se. Yeh kadwa sach hai. Jo bana rahe hai unko tax nahi dena toh jaake foreign mein settle ho jayo aur flat 20% tax dedo.
Bitter truth is most of the new investors who came to market due to Covid saga knows nothing about how stock market works. They haven't seen the dark side of it yet. But don't worry. Markets have burned hands in centuries and only retails have lost bigger than rich. History will again teach this new investors a lesson that they will be begging on streets sooner than later. When time is shining, it makes people blind and only when clouds take over, real truth gets unlocked. Sab ke sab bakc*** apne bil mein ghusenge agle 4-5 saal mein.
Gold bubble created in India will burst in some days. All those who were talking of gold hitting 1 Lakh this year are going underground now. Same way this market bubble that has created in India in last 4 years will go burst once Modi govt goes away or even if somehow I.N.D.I.A forms a govt before 2029.
