5 Reasons Why Should You Consider Investing in Stock Markets

5 Reasons Why Should You Consider Investing in Stock Markets

You must be wondering why to invest in stock markets in India. Particularly in a scenario where you possibly have a strong aversion towards taking risks, particularly with your money. This is a common obstacle keeping most people away from realizing the true value of investing in the stock market.

There are many people who wish to grow their wealth and invest money in achieving future goals in life. However, most conventional investment avenues offer little by way of returns that do not even surpass inflation in some cases. As a result, risk-averse investors have very little choice in terms of building up a sizable corpus for the future.

This is where the share market presents an alternative for earning good returns on investments. While also participating in the country's economic growth story at the same time. However, these investments are subject to market risks and necessitate deeper knowledge and research on your part as well.

5  major reasons to invest in the stock market

If you are thinking about why to invest in stock market India. Here are 5 key reasons that should clarify your queries.

• Attractive Returns– Investing in the stock market may help you earn attractive returns. That comfortably beat inflation levels in the country. The returns may be on the higher side and this may otherwise be impossible courtesy other investment channels.
• Long-Term Investments– If you were wondering why you should invest now? It is because you can invest for a longer period of time and grow more wealth for the future. You can hold onto stocks for a longer period. In order to gain from the appreciation in their values and favourable circumstances in the market.
• Income– You can earn a steady income regularly through your investments in the stock market. This is possible by trading stocks at higher prices after buying them for lower prices and similar strategies.
• Zero Lock-In Periods– There are no lock-in periods for share market investments. Something which is present in almost all other investment channels. You can hold onto stocks as per your convenience and sell them whenever you want to.
• Dividend Earnings– There are several companies that offer periodic dividends to shareholders at intervals. This is done whenever these companies book handsome profits and wish to distribute the same. You can enjoy a regular income source from such dividends. What more benefits of investing in stocks would one ask for?

Some other reasons to invest

Here are some other reasons for investing in the stock market that you should also know about:

• Merger Benefits– Whenever there is a merger of two companies or a takeover of an entity by another company, stock prices go up considerably. This presents a unique scope for investors to earn from stock trading. Investing in companies about to merge with other entities may prove lucrative in the near future.
• Bonus/Additional Shares– Whenever companies look to expand or gather more money from the market. They often provide bonus shares for existing shareholders or investors. These come at comparatively lower prices as compared to market values of the same.
• Free Decision-Making– You can take decisions yourself with regard to the investments that you will make. Where they will be made, and the duration of the same.
• Easy Entry– You can easily enter into stock market investing with smaller amounts of funds. And start earning decent returns as well. There are no investment limits or minimum thresholds and you can start gaining with a smaller initial corpus as well.
• More Options– The stock market presents a wide range of options for you to earn good returns. Including margin/derivative trading or even trading that is delivery-based.
• Convenience- You can trade online with the plethora of online platforms and facilities available these days. You can simply trade on your smartphone or laptop as per your convenience.
• Brokerage Benefits- With online trading facilities readily available, brokerage charges and fees have come down considerably.
• Transparency- Greater transparency is a given when you are investing in the stock market. There are several regulatory bodies including SEBI (Securities and Exchange Board of India) which regulate the market and brokers. And you will have all the necessary information at your fingertips online.
• Readily available knowledge– You can get easy access to market research, tips, knowledge, and analysis. From multiple sources including online sites, platforms, television channels, and more.

One of the biggest intangible benefits of investing in stocks is that; you also get to play a part in the economic progress and growth journey of the country. As an investor, you get to play your hand in the regular momentum generated in the markets.

This is one of the biggest highs of investing in the market along with the potentially attractive returns. That you stand to gain if you play your cards right.

On a closing note

Of course, no investment strategy turns perfect in a day. And you will definitely require more time to shape your outlook, strategy, and forecasting capabilities.

In terms of buying and selling the right stocks, identifying potential winners, cutting out prospective losers, and so on. Investing more time in gathering knowledge and experience is always handy when you are venturing into the stock market.

Have a long-term outlook for your stock market investments while giving yourself some leverage to make a few mistakes. Remember that losses are always temporary and you can always bounce back with persistence and determination.

The most successful stock market investors are the ones who have held onto their growth strategies. In spite of lean periods, losses, market fluctuations, and other setbacks.