Why should you invest in stock market? An Eye-opener for everyone

Stock Market Image

Whenever we hear some doing stock market investment, there is a very general perception of it being taken as gambling or some casino. This is because in India, still, people prefer to go back to the traditional way of investing in gold or real state. 

This is because of the lack of knowledge about how to invest in the share market and what kind of potential return it can offer in the long term. People take it as magic to make quick money.

Before the stock market investment, it is always better to take stock market training to get good profits.

When we invest in gold or real state, we can hold it for years without any problem, but if we invest in the stock market, we get the return in days or months.

That mindset prevents people from investing money in the stock market. It should be treated similarly to other investments where you have to give it time to grow.

Benefits of stock market investments are

Stock Market investment can offer a much higher return compared to other investments.
Returns beat the inflation rate.
It helps you achieve your financial goals at every stage with the right mix of investment.
With proper diversification and long term view, you can overcome the risk of volatility.
Long term investment gain is taxed less.
People can gain from dividends, which can also be a regular income.
Very liquid and ease of transaction.
You get a part of ownership in the company when you buy its shares. You get to know how the business runs

So investing in the stock market helps you generate wealth by leveraging the growth of different sectors in the economy.

Below are some of the points you need to look while investing in the stock market:

Get a good idea about the business of the company.
Know the valuation of the company very well before investing and buy when the price is lower than its intrinsic value.
Keep a view for the long term investment.
Balance your emotions during volatility.
A well-diversified portfolio is a right way to absorb the risk.

So if you invest in the stock market and keeps it as long as you keep your gold or real state property, you will be awarded much more than other investments.

FAQs

  1. What are the required documents to open a Demat account?

    To open a Demat account. Here is the list.
    Aadhar Card
    Pan Card
    Canceled Cheque
    Six months bank statement
    Passport size photo
    Signature on the white paper with blue/black ink

  2. Who are the investors in the Equity Markets?

    There are 3 types of Investors in the Equity market:
    Retail Investors
    Institutional Investors
    High net worth individuals

  3. What are the methods of investing in the stock market?

    Mutual Funds – You can buy plans that invest a pool of amount in the equity markets on your account.
    Portfolio Management Schemes – You can get your portfolio investment handled by a financial specialist.
    Direct Trading – open a Demat account and start trading directly on the stock exchange.
    ULIP Funds – Invest in insurance plans which give combined investment plans with life cover.

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