1. Highest Capital Growth Potential
During the past few decades in India, Stocks and real estate have constantly generated high return on investment and outgrown all other forms of investments in India. The stock market single handed has been able to outperform all these investments with the highest returns on the investments whether it is fixed deposits, insurances, bonds or commodities like gold, silver etc. Also looking at the significant amount of growth potential in the stock market, it is always recommended to invest in stocks for those who want to have an alternative source of income through investing it in the stock market and generating profits on the trades and growing their capital. Stock market has the highest growth potential for growing capital investments.
2. To keep pace with inflation
You should especially learn stock market trading to beat Inflation, as we are moving forward inflation is also increasing at its best. Inflation is when in a situation where the prices of commodities are rising and the value of purchasing power of money is decreasing. All in all Inflation is not desirable for a normal salaried common person. I will present you with an example to make you understand how serious the issue of rise of inflation is. Suppose you have Rs 7 lakhs in your bank account and you want to buy a car which fits your budget so you look for a car and find a car which has a price of 7 Lakhs in the present. However due to your tight budget, you drop the idea of buying a car of your own until next year and decide to tolerate the uncomfortable public transport which has loads of delays making you late for work every now and you decide to keep your money in the savings account to earn interest on it and to grow your “investment”
While the bank provides you the minimum decent interest rate of 3.5% per annum. Fast forward to next year and you go to the bank and come home happily after withdrawing your money from the savings account that has now become Rs 7.17 lakhs. So you excitedly go to the car showroom thinking you can easily afford the car now but you are in for a surprise INFLATION! Boom! You get very disheartened because the price of the same car has now increased to Rs 7.5 lakhs. Even after saving your money for a year and earning interest on it you still could not buy a car thanks to inflation, you are really worked up about how this can happen and you go on finding a solution to your tight budget getting tighter due to inflation. The vehicle, which you could have easily afforded in the past and bought last year, is not affordable for you after a year due to rise in prices due to inflation. This is inflation.
In India the inflation has been around 4-5% for the last few years. The return on the savings account (Interest rate) is around 3-4% per annum. Hence, the low interest earned from a savings account cannot beat inflation. So inflation remains undefeatable with savings accounts than what else do we have? You know it, this is where the stock market trading comes to your rescue in the fight against inflation. If you want to beat inflation, you just have to learn and educate yourself about stock trading and invest your money in high-return yielding investments. And the stock market is the best place for beating inflation and investors who want to grow their wealth. If you buy stocks of good companies, you can make a decent consistent return of 12-18% per annum depending on how good the stock is and how much time you invested in choosing the stock. Therefore, investing in the stock market is a great option if you want to keep pace with rising inflation.
3. Contrary to how you work so hard for money, Investing will Make Your Money Work for You-
Money is important to survive and live a comfortable life in this harsh materialistic world. So you have to work hard all your life being stuck in a 9 to 5 job that everyone ‘claims’ they love and are not only in the job for earning money and paying bills to survive. Naturally everyone would want to get rich and live comfortably. This is where investments come in to make you reach your financial goals before it’s too late.
All you need to do is invest your money in good companies, with a proper margin of safety and that’s it now you just have to sit and analyse the performance of the stock of the company. As the company prospers, your money will grow. In the meantime, when your investments are growing by themselves, you can use this time to focus on your primary job to earn a stable income and generate capital. This is how you can make your money work for you through stock investments, unlike your primary job where you have to work for money.
During the past few decades in India, Stocks and real estate have constantly generated high return on investment and outgrown all other forms of investments in India. The stock market single handed has been able to outperform all these investments with the highest returns on the investments whether it is fixed deposits, insurances, bonds or commodities like gold, silver etc. Also looking at the significant amount of growth potential in the stock market, it is always recommended to invest in stocks for those who want to have an alternative source of income through investing it in the stock market and generating profits on the trades and growing their capital. Stock market has the highest growth potential for growing capital investments.
2. To keep pace with inflation
You should especially learn stock market trading to beat Inflation, as we are moving forward inflation is also increasing at its best. Inflation is when in a situation where the prices of commodities are rising and the value of purchasing power of money is decreasing. All in all Inflation is not desirable for a normal salaried common person. I will present you with an example to make you understand how serious the issue of rise of inflation is. Suppose you have Rs 7 lakhs in your bank account and you want to buy a car which fits your budget so you look for a car and find a car which has a price of 7 Lakhs in the present. However due to your tight budget, you drop the idea of buying a car of your own until next year and decide to tolerate the uncomfortable public transport which has loads of delays making you late for work every now and you decide to keep your money in the savings account to earn interest on it and to grow your “investment”
While the bank provides you the minimum decent interest rate of 3.5% per annum. Fast forward to next year and you go to the bank and come home happily after withdrawing your money from the savings account that has now become Rs 7.17 lakhs. So you excitedly go to the car showroom thinking you can easily afford the car now but you are in for a surprise INFLATION! Boom! You get very disheartened because the price of the same car has now increased to Rs 7.5 lakhs. Even after saving your money for a year and earning interest on it you still could not buy a car thanks to inflation, you are really worked up about how this can happen and you go on finding a solution to your tight budget getting tighter due to inflation. The vehicle, which you could have easily afforded in the past and bought last year, is not affordable for you after a year due to rise in prices due to inflation. This is inflation.
In India the inflation has been around 4-5% for the last few years. The return on the savings account (Interest rate) is around 3-4% per annum. Hence, the low interest earned from a savings account cannot beat inflation. So inflation remains undefeatable with savings accounts than what else do we have? You know it, this is where the stock market trading comes to your rescue in the fight against inflation. If you want to beat inflation, you just have to learn and educate yourself about stock trading and invest your money in high-return yielding investments. And the stock market is the best place for beating inflation and investors who want to grow their wealth. If you buy stocks of good companies, you can make a decent consistent return of 12-18% per annum depending on how good the stock is and how much time you invested in choosing the stock. Therefore, investing in the stock market is a great option if you want to keep pace with rising inflation.
3. Contrary to how you work so hard for money, Investing will Make Your Money Work for You-
Money is important to survive and live a comfortable life in this harsh materialistic world. So you have to work hard all your life being stuck in a 9 to 5 job that everyone ‘claims’ they love and are not only in the job for earning money and paying bills to survive. Naturally everyone would want to get rich and live comfortably. This is where investments come in to make you reach your financial goals before it’s too late.
All you need to do is invest your money in good companies, with a proper margin of safety and that’s it now you just have to sit and analyse the performance of the stock of the company. As the company prospers, your money will grow. In the meantime, when your investments are growing by themselves, you can use this time to focus on your primary job to earn a stable income and generate capital. This is how you can make your money work for you through stock investments, unlike your primary job where you have to work for money.
4. Stock Investing only requires As Little Amount as buying a Rubik’s cube
People have a common misconception among them that they need a huge amount to start investing in the stock market. However, that is not true. You can start investing with as little money as required to buy a Rubik’s cube which you buy and struggle to make the colours all match just like how you struggle to match your wants and desires with your salary and bills There are a number of stocks whose price is less than Rs 100 by investing small amounts of money as frequently you can build up your investments and earn good returns. This option is not available in other forms of investments like gold or real estate.
5. You do not need to be a ‘Genius’ to invest in Stock Market
While starting most businesses or start-ups it requires all of your time and full attention to make the business profitable. The stock market requires only a little time and money to begin your investment journey with just enough knowledge, time and interest. Anyone with the basic knowledge can earn decent returns by investing in the stock market.
6. Investing in Stocks is lot easier ‘Now’
With the growth of online learning platforms and online courses you can learn all about stock trading in just a few weeks of devoted time. Try to gain as much knowledge about investment in the stock market as you can and look at real life experiences of people with trading which you can learn a lot from. Investing and trading with the online brokerage account is a lot simpler now. Now with the help of leading online brokers, you can buy and sell stocks within seconds using your smartphone.
7. Tax benefits from Government on Stock Investing-
You get numerous tax benefits when investing in the stock market. The long-term capital gain tax is 10% for gains exceeding Rs 1 lakh. Still, this is better than the return of 6.5% from FDs, which is again taxable up to 10-30% depending on your tax slab. That is why they often say that the ‘The rich pay less tax’.
8. You do not always have to Pick Hidden Gems.
You can analyse a company’s stock and if you think it has a decent profile of stable returns it is a good option to invest in it. Rather than being greedy and looking for hidden gems try to gain as much you can from your investments intelligently.
Companies which are well-known to the common people and they can easily find such growing companies around them as they are already using their products. For example ITC the FMCG commodities of ITC are well known and sold in the market.
Don’t always just try to look for a hidden gem or go for a stock which is totally unheard chemical stock. You just have to research and find profitable leading companies with stable returns and amazing products and just simply invest your funds in them.
9. To create an Alternate source of income
We are always taught in our school- ‘Get a high paid safe and secure job’. To be successful the general idea is to have a well-paying 9 to 5 job, but school doesn’t teach you anything about the real adult world where you have to deal with harsh reality. It is not taught what will happen if you’re fired or the company is shut down. That is why we should always have multiple sources of Income or at least an alternate source of income from our primary jobs. Most people dedicate their lives to their office work and have no time for anything else. For these people, Investing in the stock market can be their alternate source of income. From investing in the stock market you can earn dividends and value appreciation, you can steadily grow additional income. This is why people need to start investing in the stock market, to create an Alternate source of income.
10. The Power of Compounding through Long-term Investments-
You can take advantage of compound interest through investing in the stock market, which grows your wealth tremendously. Most savings accounts in a bank give you a simple interest whereas with investing in stocks, you can earn compounded returns. The world famous scientist Albert Einstein once said- “Compounding is the eighth wonder of the world”. The world’s greatest investor, Warren Buffett, is known to have a compounded return of around 22% for the last 5 decades. Investing in an intelligent manner where you earn compounded returns for a long time has made Warren Buffet one of the richest men on earth. The benefits and potential of growth in compounding is one of the biggest reasons why people should invest in the stock market.
Conclusion-
In this blog post, we discussed 10 points on why you should start investing in the share market. The main reason to invest in the share market is to beat inflation, and create wealth over time while fighting inflation and obviously you get a much higher return on your capital which is invested in the stock market with just a little bit of market.
People have a common misconception among them that they need a huge amount to start investing in the stock market. However, that is not true. You can start investing with as little money as required to buy a Rubik’s cube which you buy and struggle to make the colours all match just like how you struggle to match your wants and desires with your salary and bills There are a number of stocks whose price is less than Rs 100 by investing small amounts of money as frequently you can build up your investments and earn good returns. This option is not available in other forms of investments like gold or real estate.
5. You do not need to be a ‘Genius’ to invest in Stock Market
While starting most businesses or start-ups it requires all of your time and full attention to make the business profitable. The stock market requires only a little time and money to begin your investment journey with just enough knowledge, time and interest. Anyone with the basic knowledge can earn decent returns by investing in the stock market.
6. Investing in Stocks is lot easier ‘Now’
With the growth of online learning platforms and online courses you can learn all about stock trading in just a few weeks of devoted time. Try to gain as much knowledge about investment in the stock market as you can and look at real life experiences of people with trading which you can learn a lot from. Investing and trading with the online brokerage account is a lot simpler now. Now with the help of leading online brokers, you can buy and sell stocks within seconds using your smartphone.
7. Tax benefits from Government on Stock Investing-
You get numerous tax benefits when investing in the stock market. The long-term capital gain tax is 10% for gains exceeding Rs 1 lakh. Still, this is better than the return of 6.5% from FDs, which is again taxable up to 10-30% depending on your tax slab. That is why they often say that the ‘The rich pay less tax’.
8. You do not always have to Pick Hidden Gems.
You can analyse a company’s stock and if you think it has a decent profile of stable returns it is a good option to invest in it. Rather than being greedy and looking for hidden gems try to gain as much you can from your investments intelligently.
Companies which are well-known to the common people and they can easily find such growing companies around them as they are already using their products. For example ITC the FMCG commodities of ITC are well known and sold in the market.
Don’t always just try to look for a hidden gem or go for a stock which is totally unheard chemical stock. You just have to research and find profitable leading companies with stable returns and amazing products and just simply invest your funds in them.
9. To create an Alternate source of income
We are always taught in our school- ‘Get a high paid safe and secure job’. To be successful the general idea is to have a well-paying 9 to 5 job, but school doesn’t teach you anything about the real adult world where you have to deal with harsh reality. It is not taught what will happen if you’re fired or the company is shut down. That is why we should always have multiple sources of Income or at least an alternate source of income from our primary jobs. Most people dedicate their lives to their office work and have no time for anything else. For these people, Investing in the stock market can be their alternate source of income. From investing in the stock market you can earn dividends and value appreciation, you can steadily grow additional income. This is why people need to start investing in the stock market, to create an Alternate source of income.
10. The Power of Compounding through Long-term Investments-
You can take advantage of compound interest through investing in the stock market, which grows your wealth tremendously. Most savings accounts in a bank give you a simple interest whereas with investing in stocks, you can earn compounded returns. The world famous scientist Albert Einstein once said- “Compounding is the eighth wonder of the world”. The world’s greatest investor, Warren Buffett, is known to have a compounded return of around 22% for the last 5 decades. Investing in an intelligent manner where you earn compounded returns for a long time has made Warren Buffet one of the richest men on earth. The benefits and potential of growth in compounding is one of the biggest reasons why people should invest in the stock market.
Conclusion-
In this blog post, we discussed 10 points on why you should start investing in the share market. The main reason to invest in the share market is to beat inflation, and create wealth over time while fighting inflation and obviously you get a much higher return on your capital which is invested in the stock market with just a little bit of market.