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6 big reasons to invest money in stock market

6 big reasons to invest money in stock market

There are number of ways one can invest his/her hard earned money. One of the biggest and most commonly used method to invest money is stock market. Stock market has always been a topic of discussion among common people. Many believe its the best way to invest money while many think of it as a gamble. Many people believe that only some specific people who has knowledge of stock market can be successful with their investment in it but that is not true. Some understanding is definitely required to understand how the stock market works but it is something that anyone of us can do.

There are definitely some things which are essential to know as a beginner before investing in stock market. Anyone can learn the necessary steps required to invest in stock market and make profit. Still lots of people have their doubts about investing money in stock market. There is always a fear of losing the money. This fear is understandable but it can be avoided by careful investment. Apart from this the advantages of investing in stock market are vast.

The benefits of stock market investment are such that it can prove to be the best investment decision of yours. Common people do not invest money in stock market because they think that it is for rich people but it is not true. One can invest even a small amount in stock market and get benefits. Therefore, every one of us should invest in it and reap its benefits.

Read also: Stock market investment: 9 things to know

Why you should invest money in stock market

  1. Stock market can give high return in short period of time. With the growth in market and company’s share value in which you have invested your invested amount could get doubled.
  2. Stock market has high liquidity. You can buy and sell your shares at any time without any difficulty. If you have invested in some company and you think it will go in loss then you can sell your shares and similarly if you want to invest more in some stocks you can buy more at any time without any difficulty.
  3. With stock market investment you get more financial freedom and more knowledge on the subject. This knowledge will help you make better investments and make you financially independent.
  4. With investing in stock market the value of your money also goes up with increasing prices. If you would have saved that money the its value would have decreased with inflation but investing in stocks helps you in growing your money value with the market.
  5. Another reason to invest in stock market is that you get regular income through dividends. A dividend is a distribution of profits by a company or corporation to its shareholders and by investing in company’s shares you are its shareholder.
  6. Even though thousands of people have invested in stock market the percentage is very small compared to the nation’s population. In India only 3% of its population has invested in stock market. Therefore, there is a lot of potential and opportunity to make your money grow in stock market investment.

It is wiser to invest money in stock market at this point of time. It is one of the best way to invest money and reap long term benefits. As a beginner, start investment with small amount. Do not put all your money in one company’s shares. Invest in multiple companies, this will lower the risk of money loss. Hope this post was helpful to you and good luck with your investments.

Read also: Will stock market make you rich?

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3 big benefits of investing in stock market

3 big benefits of investing in stock market

Investing one’s money is always our primary concern when we start earning. There are many ways through which one can invest his/her money and stock market is one of them. It is one of the biggest mode of investment. Millions of people invest in stocks everyday. While there are always some stories about the money loss in stock market, it still is widely used and trusted way of investment.

Stock market allows you to invest in popular companies or brands and grow your money with their increase in valuation. You can invest in number of companies and earn benefit from each of them. Stock market has its own risk and benefits. Market goes up and down every minute. There is always a chance of getting into loss but if you invest wisely then that can be avoided or your loss can reduced and benefits can be increased. If you are a beginner in stock investment then you should always start your investment with low amount and then as you get familiar about how the market works you can put more money into it.

Despite of its risk stock market has some crucial benefits which helps its investors. These benefits are the reasons of investing in stocks and makes stock market one of the popular mode of investment.

Read also: Will stock market make you rich?

Benefits of investing in stock market

  • High return in short period – One of the biggest advantage of stock market is that it can give you high return in very short period of time. With right choice of shares and positive growth of the market your stocks value can increase impressively. You can double your investment amount more rapidly compared to other modes of investments.
  • It makes you the owner of company – When you buy shares of a company, no matter how small, you are now owner of that company. You got the right to vote in the strategic meetings. With this you can influence the direction in which companies strategies go and plan your next step accordingly whether you want to buy, sell or hold its stocks.
  • High liquidity – In stock market you can buy or sell your shares at any time. There are no rules that once invested you can’t get you money back. You can invest with smaller amount and if you wish you can either invest more or withdraw the invested amount without any difficulty.

These benefits makes the stock market one of the most beneficial way of investing money. There are definitely some precautions which need to be taken. Never invest all your money at once or in the one company. Make a portfolio of at least 10 companies. This will help you reduces your losses if any.

If this was helpful to you then do read other posts on similar and different topics. Do share it with your friends and start investing. Greatly appreciate your support.

Read also: 1 big mistake in stock market most of us make