Why to invest in the stock market
There are hundreds of reasons to enter the stock market. Investing in the stock market offers you higher returns. This can be the correct way to make your money double through compounding. Right decisions with proper analysis and information can generate more reward with less risk.
Here are some reasons you should consider
1. It's easy to start and affordable
You can create your De-mat account with any of the renowned brokers
within an hour to start investing. It’s not needed that you should be a math genius, wealthy, or strong in financials to start. You can choose stocks of popular
companies in the beginning to start investing or if you want to learn it then choose
a good platform to start learning. Investing
in the stock market is a general way to making your money work for you, but
it’s not necessary to have lakhs of money to start. You can begin with 500
rupees which maybe you daily expenses.
2.
The Power of compounding
When it comes to investing the concept of compounding plays a vital
role If you invest for a long time period and let the interest compound, you
will easily earn a lot of money and will get one of the best benefits of
investing in stocks.
3.
Diversify and Mitigate Your Risk
Experts say don’t put all your eggs in one basket. The basic concept is to diversify your investment. It is true that you can’t end all the risks, but you can always reduce it. This can happen only when you diversify your investments. If one sector is down, the other ones will take care of your money. This way, you can balance the portfolio.
4. Beat inflation
No one can deny the fact that inflation is increasing rapidly globally. Inflation is the general rise in the price levels with time. It decreasing the value of your investments. The returns from bank FDs or PPF can hardly beat the effects of inflation. For an example- if a food item costing rs. 100 today may cost rs. 120 next year. Hence, stock market investing can be counter to the effect of inflation as the returns from share market are relatively higher.
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