To satisfy personal goals. Goals can be different for different people depending on the risk appetite. Example of goals could be building a pension corpus for retirement investing, to generate income through profits to buy real estate in some years etc. Hence, a broad spectrum exists with trading on one side and investing on other side. Even inside investing, there can be several strategies based on risk tolerance level of individual investor.
While your dreams should not have any limits, you must differentiate your goal from your dreams. We all want to be rich, live a luxurious life, and buy everything we wish to have without any financial stress. However, you need to understand that your dreams are not your goals. While being rich and living a luxurious life can be a dream, it cannot be your financial goal.
A few days back, there was an article in this newspaper highlighting that equity mutual fund inflows have seen the ‘highest inflows in 4 months’. Net inflows in these funds had hit a low of Rs 2,258 crore in November 2022 but rose sharply in December to Rs 7,303 crore and Rs 12,546 crore in January. Over the last 12 months, the high was Rs 28,463 crore in March, and the low was the November figure above.