Stock markets are the most viable Securities as they come with several monetary benefits. undoubtedly Investing in stocks is an excellent way to grow your wealth. you need determination, hard work, patience, and discipline, and deep knowledge about the stock market. you need to learn from the basics to the most advanced tools and methods of the stock market, and you need to continuously learn and sharpen your skills to be successful in the stock market. in this post, we will discuss Why you should invest in the Stock market.
Investing in the stock market is great in many ways including great and safe long term returns. and if you are setting a long term goal, stock market investment is the best option. below are 10 important reasons why you should invest in the stock market.
Also read: How to start investing in the stock market?
1.Well-Regulated and Transparent System
Being a part of the global economy, stock markets are well-regulated and transparent to suit everyone’s needs in terms of Valuations, Pricing, Disclosures to ensure that none of the investors is at risk of hidden propaganda anytime, anywhere. As far as India is concerned BSE and NSE in association with SEBI provide a transparent, well-regulated framework and platform for exchange, trade, and investments of stocks.
2.Partnering in the Nation’s Prosperity
India is an emerging country and growing at a decent pace. with stock markets, there exists an opportunity to be a part of India’s growth as we know every country are treating their stock market as a benchmark of their economy. Investing in Indian companies is participating in economic growth.
3.Diversification
Purchasing stocks of companies operating in different sectors as well as segments is possible, which helps in optimizing the asset-allocation and provides diversification. Investing in the stock market will help you to grow your wealth.
4.Safe retirement plan.
Many of us are investing in different retirement plans. but very few opt stock market investment since they think it is risky. but if you are setting a long time horizon Stock market is the best retirement investment ever. yes, many made losses in short term investment and intraday trading by aiming quick money, but if you take an example of the Indian market it never disappointed in the long term (for retirement plans minimum 10-15 years). so do research about long term investment in the Indian stock market and invest. you will definitely find it interesting.
5.Protection against inflation
shares have won the battle against the inflation rate over the years, providing enough returns and growth. if you are keeping your whole money in your bank accounts or in your home, after a few years it will depreciate its value, as you know bank accounts can give you limited interest for your investments. but when it comes to the stock market, it gives amazing returns over the long term that will help you to fight against inflation.
6.Opportunity to invest in markets across the globe
Stock Market gives the opportunity to be a global investor by investing in Shares of companies headquartered overseas being listed on Indian Stock Exchanges, exploit the profit opportunities from the company’s expansion plans, and making money for a better standard of living.
7.Partnering the Business, You Love
There are certain companies or business houses and sectors which we love to track and at times imagine if we had the opportunity to run that company or business. But for a retail investor with limited financial capacity, it is not possible. However, we can partner the same business by buying the shares of the company and becoming part-owner of the company you love.
8.Great Post Tax Earnings
Tax is eating up gains. yes, there is tax to be paid for stock market investments also but comparing with other investment returns, stock market gain will help you to balance the tax paid for other returns also. investing in the stock market helps you maintain the rate of returns on investments. stock market gives such good returns. and for long term gains tax is exempted.
9.Invest in smaller amounts
Systematic Investing Plans (SIP) can apply in the stock market. you can buy the stock you like in SIP mode and accumulate more when its price comes down.SIP in stocks is another important thing because you will not lose all your money if there is a sudden fall in the market. SIP in stock is a great way of investing in the stock market suggested by many great investors.
10.Ease of Access
In this modern era of technologies, everything is moving and evolving rapidly. Fintech made stock market investment very easy. Anybody can open a Demat and trading account in 5 minutes if he/she having necessary documents, and brokers will provide mobile applications for trading that made trading very easy. you can make your investment anytime from anywhere. therefore investing in the stock market is very easy in this modern era. so stock market investments are getting popular among peoples.
Final thoughts
Investing in the stock market is one of the most genuine methods to grow your wealth. many people stay away from the stock market. because of the wrong concept and bad image of the stock market. but if you learn the stock market properly, you can make money from the stock market consistently. in this post, we discussed Why you should invest in the Stock market. i hope this post will make you to think about investing in the stock market.
Happy Investing