Open free demat and trading account now and get a zero brokerage trading account Plan. You can enjoy a free share trading account with Dealmoney Securities.
5 Reasons to Invest in Share Market
1. Easy entry – Investing in the market is made a lot easier now!
Investment & trading has become easy with an online demat & trading account. With an online trading platform, the account opening process has become hassle-free. Moreover, buying & selling of shares is now a matter of a few seconds with the mobile trading application.
There are many financial websites & apps for finding a good stock. There are zero entry barriers when it comes to investing in the market.
2. The stock market has the most capital growth potential
India has recently become the 6th largest market in the world. The Indian economy has the highest growth potential, with the world expecting it to be the third-largest economy soon. The market has earned more than 1,500 points from August 2021 to September 2021. Of course, the market has witnessed a few hiccups. The future journey will also include the ups & downs in the market. But, in the long run, the Indian market has the highest growth potential.
The stock market
Compared to other investment avenues -fixed deposits, insurances, bonds, gold, silver, petroleum, etc.- the stock market has outperformed all the above investment options with the highest CAGR.
3. Source of passive income - it requires as little amount as buying lunch from your favorite restaurant
The stock market can be the source of passive income for you as it makes your money work for you. Investing in good companies will make you financially free. You will no more work for money. A proper investment strategy will help you earn a steady daily income.
When money is not the concern, you can focus on your primary job where you work for money.
4. The power of compounding – 8th wonder of the world
You must have heard about the seven wonders of the world, but have you ever come across the 8th one?! The power of compounding is the 8th wonder of the world. The long-term market investments allow you to take advantage of the compounding effect – where your profit gets reinvested in the company & you earn a profit on profit. For example, if you have invested in the stock, say at ₹1,000. In the six months, the share price has reached ₹1,100 & you stay put. This is as good as investing ₹1,100 at this point. The world’s most successful investor is known to have earned approx.22% of CAGR for the past 50 years.
5. Inflation-adjusted returns
Inflation is when the purchasing power of the money reduces, or the price of goods & services rises. The number of things you could have purchased with ₹10,000 five years back is not the same today & it will reduce further in the next five years. In India, the average rate of inflation in past few years has been around 4-5 %. The average rate of return provided by the market is 12-18% depending upon the quality of stocks & period of holding.
The returns provided by the market are inflation-adjusted, as the companies you are invested in consider the effect of inflation & adjust their product price, expenses accordingly.
The same is not possible in fixed-income investments.
Therefore, investing in the market is the only way to keep pace with the rising inflation.
Conclusion – The stock market investment comes with several benefits. Some important ones are mentioned in the above article. It offers some additional benefits like – tax benefits on capital gains & dividends, zero lock-in period, transparency & security, add-on benefits provided by the company like dividend, bonus shares, split, right issue, voting rights, etc
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5 Reasons to Invest in Share Market
1. Easy entry – Investing in the market is made a lot easier now!
Investment & trading has become easy with an online demat & trading account. With an online trading platform, the account opening process has become hassle-free. Moreover, buying & selling of shares is now a matter of a few seconds with the mobile trading application.
There are many financial websites & apps for finding a good stock. There are zero entry barriers when it comes to investing in the market.
2. The stock market has the most capital growth potential
India has recently become the 6th largest market in the world. The Indian economy has the highest growth potential, with the world expecting it to be the third-largest economy soon. The market has earned more than 1,500 points from August 2021 to September 2021. Of course, the market has witnessed a few hiccups. The future journey will also include the ups & downs in the market. But, in the long run, the Indian market has the highest growth potential.
The stock market
Compared to other investment avenues -fixed deposits, insurances, bonds, gold, silver, petroleum, etc.- the stock market has outperformed all the above investment options with the highest CAGR.
3.Source of passive income - it requires as little amount as buying lunch from your favorite restaurant
The stock market can be the source of passive income for you as it makes your money work for you. Investing in good companies will make you financially free. You will no more work for money. A proper investment strategy will help you earn a steady daily income.
When money is not the concern, you can focus on your primary job where you work for money.
4. The power of compounding – 8th wonder of the world
You must have heard about the seven wonders of the world, but have you ever come across the 8th one?! The power of compounding is the 8th wonder of the world. The long-term market investments allow you to take advantage of the compounding effect – where your profit gets reinvested in the company & you earn a profit on profit. For example, if you have invested in the stock, say at ₹1,000. In the six months, the share price has reached ₹1,100 & you stay put. This is as good as investing ₹1,100 at this point. The world’s most successful investor is known to have earned approx.22% of CAGR for the past 50 years.
5. Inflation-adjusted returns
Inflation is when the purchasing power of the money reduces, or the price of goods & services rises. The number of things you could have purchased with ₹10,000 five years back is not the same today & it will reduce further in the next five years. In India, the average rate of inflation in the past few years has been around 4-5 %. The average rate of return provided by the market is 12-18% depending upon the quality of stocks & period of holding.
The returns provided by the market are inflation-adjusted, as the companies you are invested in considering the effect of inflation & adjust their product price, expenses accordingly.
The same is not possible in fixed-income investments.
Therefore, investing in the market is the only way to keep pace with the rising inflation.
Conclusion – The stock market investment comes with several benefits. Some important ones are mentioned in the above article. It offers some additional benefits like – tax benefits on capital gains & dividends, zero lock-in period, transparency & security, add-on benefits provided by the company like dividend, bonus shares, split, right issue, voting rights, etc
