Have you ever thought about having learning, entertainment, and making money over the long term?
The stock market (share market) is all about the best way to head up a good life. There are a lot of misconception about the Stock Market as “Investing in the stock market is the same as gambling” and this became a reason for why even less than 2% population of India is actively investing in the stock market.
But here I am going to make you wonder about the Top 7 Important reasons for investing in the stock market.
Are you ready to make long term money? Then keep reading.
1.To keep pace with inflation
Inflation is not a favorable one for the economy. It is a state of condition where prices are rising and the value of purchasing power is decreasing. If you invest in the stock market then you can beat inflation and keep safe money in the middle of inflation.
Let us understand inflation with an example. Suppose you have Rs 1 lakhs in your account and you are planning to buy a brand new scooter worth Rs one lakh. Then you changed your mind, deciding to buy the scooter next year, and kept your money in the savings bank account. The banks are giving a low rate of interest of 3% pa. Now, on next year, the invested amount of 1lakh become Rs 1.03 lakhs now. Then you went to the scooter showroom. But boom! You get the shock. The price of that scooter has now increased to Rs 1.05 lakhs. The scooter, which you could have easily bought last year, is now not affordable to you. That is inflation.
2. Better growth potential
The stock market is an investment that consistently beaten all other investment options like gold, real estate, mutual funds, etc. And it has been able to beat all other investments with the best returns. Hence, with the enormous growth potential in the stock market, it is always advisable to invest in stocks.
3. Investing makes your money work for you
Money is not everything but we need money in every aspect of life. However, lack of money is the cause of most problems, and smart investing is the real solution to this problem. Invest your hard-earned money in shares of good companies and you can do other works or sit idle. Here the invested amount will grow with the success of the company.
4.Start investing with small amount
There is a common misunderstanding among most people that they need big money to start investing in the share market. Don’t worry! You can start investing even with less than 100Rs, which makes the stock market unique. This is not possible with real estate or gold investments.
5. You do not need to be a genius to invest in the stock market
The stock market needs only fifth-grade mathematics and not the brain of a professional. You don’t need to be a rocket scientist for investing in the stock market. If you are ready to learn, then you can invest in good stocks and grow.
6.To create a second source of income
Though the share market is a secondary source of income, it can also act as the main one when you need back support like in the situation of unemployment. Recently a lot of people lost their jobs due to the corona pandemic. So it is always better to have a backup plan. Through value appreciation and dividends, they can steadily grow additional income.
7. Easier than before
It’s easier and more manageable than before because we have a lot of resources like financial websites and applications to study the about stock market.
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2 comments
Very good
👍👍👌👌