Imagine your investments hitting rock bottom. If the trusted stocks in your portfolio get devalued by 75%, how would you feel about it? Infuriated, of course! This is what happened in 2001 when stock markets across the world fell under the dot-com bubble burst.

So what exactly is the dot-com bubble and what led this bubble to burst?

The dot-com bubble refers to the period in which people were thrilled about the potential of technology stocks and the amount of profit they could deliver. These stocks led the pathway to hopes and dreams of many who aspired to become rich. Unfortunately, the expectations of these investors did not land well.

Indications that the bubble would burst began showing in the year 2000 and by the end of 2001, a key measure of these stocks, the Nasdaq Composite Index, lost at least 3/4th of its value. In simple terms, you bought something for 100 bucks and its value fell to just 25 bucks!

The impact spread around the world, directly affecting the Indian Economy. The Bombay Stock Exchange fell to less than half of its value between the years 2000 and 2002. A significant number of investors lost faith in tech stocks when this happened.

One should be mindful of where they put their money and any decision solely influenced by trends may lead people to make wrong decisions. 

However, if there were an instrument that prioritized stability and guaranteed returns of up to 14% per annum, one could invest smartly and earn significantly well. 

To know how you can harness the potential of such an instrument check out Xtra on MobiKwik. 

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