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You can find various options and financial products in the market to invest and increase the value of your wealth. From FDs to bonds, real estate or precious metals there are multiple options to invest with different return potentials as per the assets. For most of the investment assets, you will get a fixed or stable rate
Yes, I’m talking about the stock market or share market which can be a risky field but featured with all types of investment options and high return capability. Here in this article, we are going to discuss the advantages of the stock market with various other aspects that will encourage you to think about investing in the share market and how to start your investment.
One of the best things about investing in the stock market is that you can now invest through multiple devices like desktops, laptops and smartphones. Yes, in the digital era, you can find many discount brokers and top broking companies offering online trading platforms to get updated information on the stock market with the facility to buy and sell shares.
You can access your trading account through the stock market application using the same login credentials with ease of investing as per your availability. In earlier days you had to call your broker and transfer the fund manually and then on your behalf your broker can buy or sell shares. But now due to digitalization and with wide payment options, you can do it yourself.
Another benefit of investing in the stock market is you have the flexibility to invest as per your ease and affordability. Just like real estate or property, you don’t need a huge amount of money to start your investment journey in the stock market. Here you can start with a smaller amount even with a penny amount buy stocks having very low prices.
Moreover, you are not bound to invest for a particular period, if you are getting a good return you can sell the stocks the next day and monetize your investment. There is flexibility to choose stocks from different sectors and the companies that you can afford as per your affordability. Investing in the stock market you have wide flexibility to invest.
In real estate and precious metals, you can get high returns but you have to wait for long years to enjoy such high returns. But when you invest in the stock market it is not necessary to wait for the long years you can get the higher returns in a few days or months. This is another advantage of the share market can give a higher return in the short or long run.
When you invest in the stock market it is not necessary you have to wait for long years to get the returns. Here sometimes or you can say many times, your investment can multiply in a few days giving you an opportunity to earn amazing returns. The stock market is one of the highly volatile (VIX) places where stock price moves abruptly in a few minutes.
In the stock market, there are unlimited companies listed from different sectors and industries of the economy. From banking to pharma and real estate you can pick the right stocks from different sectors. Investing in different companies from different sectors gives your asset a well-diversified investment from different stocks of the economy.
Investing in the stock market has another amazing benefit that gives you the flexibility to liquidate your investment anytime as per your needs. Yes, when buy the stocks from the market, you will get the delivery of shares the next day into your demat account. Similarly, you can sell the shares anytime during the
A dividend is the portion of net profit earned by the company distributed among the shareholders from time to time as per the approval by the board of directors. Usually, companies declare or pay dividends along with their quarterly, half-year and annual financial results. However, sometimes companies also pay interim dividends from the general reserves.
Companies from the pharma sector, FMCG, banking and IT give higher dividends compared to the companies discussed above. Hence, while investing in the stock market pick the right company as per your investment criteria and time horizon.
Though it is very small or minor almost negligible, when buying the shares of a company in any quantity even a few stocks, you also become the owner of the company as per your shareholdings. This gives a pride of ownership in the listed companies. However, for individual or retail investors there is capping or investing in the shares at certain limits.
In a growing economy, inflation is a natural phenomenon, and your money parked in a bank account or kept in your house for more than one year will be depreciated. Yes, if you are not earning this money higher than the inflation rate, it means the purchasing power of your money is decreasing. But when you invest in the stocks it works like hedging.
The stock market in India is regulated by the individual regulatory body Stock Exchange Board of India (SEBI).The central government has established such an independent regulatory body to control the operations and protection of investors from any kind of scam or fraudulent activity in the stock market reducing the risk of investing in such assets.
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