Due to lack of awareness, lack of financial education and lot of misconceptions the Stock Market has very bad name among Indian People. Most of the people thinks it is a gamble and it is only for Rich people however it is totally wrong. Stock Market is the only asset class which gives maximum returns over a period of time say appx 15-18% annually with compounding however other asset classes like Gold, Real Estate, FDs etc gives much much less return compared to Stock Market. Still there is very less participation by Indians in the stock market.
Benefits investing in Stock Market
There are lot of benefits investing in stock market and its gaining popularity among Indians currently.
- First and foremost benefit is the good appreciation on the stock value. If you keep a good stock in your portfolio for a period of time you can handsomely gain by appreciation of value.
- Another benefit is liquidity. Like bank deposits shares can also be sold and bought in a day and you can get your credit the next day such a high liquidity is also available.
- Third benefit is getting regular benefits of Dividend, Bonus, Buy-Backs at higher prices etc are the salient benefits that you get along with your shares.
Moreover stock market is the place where you can achieve any type of your financial goal may it be short term or long term there is strategy by which you can achieve your goal.
However you should keep in mind that although it looks very easy to invest and earn in the stock market it is not like that
- you need to do lot of research before you select a good company. Have a right strategy as per your goal and stick to it.
- Do not reshuffle the portfolio often, only reshuffle when it is required.
- Spread your investment in various sectors and quality stocks having good management. Don’t do trading and don’t play with Tips.
- You can generate your own tips. If you understand the data properly you can predict the stocks future movement perfectly.
- So keep reading past data. Stock market is basically work on future forecasting of the company not on the past what has happened or currently happening.
- What is going to happen in the future gives the direction to it share price. So be alert, do your own research and then invest.
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