Elearnmarkets, as the name suggests is an ‘E’ i.e. Online platform to ‘Learn’ financial ‘Markets’. It is an online educational platform which provides financial training to students worldwide. With the help of the virtual world of the internet, it provides practical education to students who are enthusiastic about the markets.
Online learning is a new method of education which has revolutionised in the last decade. It is a method of delivering educational information with the internet as a medium rather than a physical classroom. There are different methods of delivering online education ranging from downloadable content like videos and PDF to well structured programs like courses and certifications. The students can learn from their home, or the place of their work irrespective of their age, location and qualification.
Now that we have covered the ‘E’ and ‘learn’ of Elearnmarkets, let us move on to what is actually ‘markets’ all about. Financial markets or more commonly known as stock markets are an essential part of an economy. And the ability to understand how the money works and flows in this market is known as financial literacy. The financial market is the market in which people and institutions trade financial securities like shares, commodities, currency and derivatives.
With centuries and generations of students who attended physical classes and have done well with their lives, the question is why should someone opt for online learning classes? Well, the benefits and possibilities are endless in the online world. The students can learn from the comfort of their home or office. It is a cost efficient method which requires no travelling and no exhaustion from the journey to the institution. The courses fit into the family and work schedule of the individual and late arrivals is no more an issue. Present day online learning methods enable us to ask questions spontaneously and the instructors are also approachable online. The students have access to their courses 24/7 and sometimes it is also less intimidating than the classroom settings. Furthermore, students are able to enhance their internet and technology skills. The online course providers can teach through various methods of delivery like videos, live classes, podcasts etc.
Financial literacy has become a necessity in the present world. It is the ability to gain knowledge and the skill set to take your money management decisions effectively. This is crucial for everyone as nobody can become wealthy in their lives by themselves if they only remain a salaried individual and save a part of their salary in bank accounts. There is a concept of active income and passive income which people need to know. The active income is the income that we earn by working on a day to day basis. On the other hand, passive income is the money that is accumulated over a period of time when the savings are invested in financial instruments that perform well over a period of time.
Since the beginning of 2014, India has been part of a major bull run in the markets. Nifty, the benchmark index of the National Stock Exchange (NSE) recorded a 31 per cent jump in 2014 itself. The success of the rally of Indian markets was the second best in the whole world, the first being China.
But, it is an unfortunate fact that a very small percentage of the Indian population actually participated in the rally and benefitted from it. The proportion of retail investors in India is painstakingly low. Compared to 10 percent in China and 18 percent in the U.S., only 1.5 percent of the of the Indian population actually participate in the markets. The total household savings of Indian exposed to the equity markets in close to 2 percent while 45 percent of the U.S. households are invested in long term investments.
Hence a Financial Literacy is a vital requirement of this generation of Indians. It is a life-skill which is required in every individual regardless of age, income or educational background. Having financial literacy helps to understand the financial framework around the individual and avoid common mistakes people make while managing their finances.