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Top 5 Reasons to Invest in Stocks – Benefits Of Investing In Stocks

Top 5 Reasons to Invest in Stocks – Benefits Of Investing In Stocks.

Here are Top 5 Reasons to Invest in Stocks and Benefits Of Investing In Stocks.

Reasons to Invest in Stocks

Top 5 Reasons to Invest in Stocks

1. Financially Secure your Future

Stocks are the First Choice when it comes to Best Investment Options for Higher Returns. Stock investment is among Investors because of their potential to generate positive higher returns
over months and years. A Diversified Portfolio of stocks can earn you more money than a Bank FD.

2. Start Investing @ Rs. 100 only

Unlike some other assets, you can start investing in stocks with an amount as small as Rs. 100. Many Brokers allow you for Mutual Fund SIP Investment @ Rs. 100 Per Month.

3. Retire Earlier from Work

It is proved that if you save 25% of your annual expenses, it will help you to live off the investments you make. This not only ensures that you won’t need to work until old age but it will also give you a lot more freedom to do the things you always wanted to do.

If you don’t find a way to make money while you sleep, you will work until you dieWarren Buffet

4. Be a Proud Partner in a Company

The shares you buy from Stock Market actually makes you a partner in the company. If you want to be a Partner in Companies like Reliance, Tata, Adani, Google, Tesla, Apple, Microsoft or Top Textile Companies in India, just buy their stocks. That’s all.

The stock market provides a way for you to invest in these companies. By investing some of your money in your favorite stocks, you get the double benefit of supporting the company while generating positive returns as the company succeeds and grows BIG.

5. Protect your Cash from Inflation

It can be Tricky to protect yourself from Inflation as it actually lowers the value of your money over time. By investing in stocks, you’ll be able to preserve this value and outrun the inflation.

7 Benefits Of Investing In Stocks

S# Benefit
1. Comparitively higher returns.
2. Protect your money, wealth and future from inflation.
3. Earn regular passive income in form of dividends.
4. Proud ownership of a listed company.
5. More Liquidity than other Investment Options such as real estate.
6. Investment Portfolio Diversification reduces risk profile.
7. Option to start small via SIP Investment @ Rs. 100 Only.

Reasons to Invest in Stocks FAQ

Long-term investment in stocks offers the benefit of Capital Appreciation. Greatest potential for growth is Best Reason to Invest in Stocks. Stock prices may swing UP and DOWN over time but Investors who HOLD their Stocks for long periods of say 10-15 years are ALWAYS Rewarded with HUGE Return.

  1. Financially Secure your Future
  2. Retire Earlier from Work
  3. Protect your Cash from Inflation

Apart from other advantages, one primary advantage or benefit of investing in the stock market is that your savings get enough opportunity and time to grow. Stock Market Index always tend to rise in the long run although prices of individual stocks rise and fall daily. Investment in Right Stocks of stable companies with Good Fundamentals helps investors money to grow over time.

People with small or big saving can invest in stocks. They can be Students who save from their pocket money, Salaried person who is able to save some money from his salary, Housewife who saves money from their Husband's Pocket while he is Drunk, Greedy Business man who wants even more money and anyone with little Risk Profile.

Ideally, People who have extra money that they won't need for a few years should consider investing in stocks because it has the potential of earning the highest returns.

  1. Stock Market are risky and volatile. Stock Prices Rise and Fall Quickly.
  2. You become partner of a company by investing in its' Stocks. In other words, Investors have ownership of the business. Hence, investors, like all other owners, are the last to get paid. The company must first pay its employees, suppliers, creditors, pay taxes. Any money left is lastly distributed among its owners.
  3. While investors are part of the group of owners of the public company, they do not enjoy all of the rights and privileges that the owners of a private business do.
  4. Investors in a public company may not have access to all information about the company. This lack of information can sometimes worsen the investment decisions.

Final Words on Why we Must Invest in Stocks

Above are the Top 5 Reasons to Invest in Stocks and Benefits Of Investing In Stocks. But remember, that there are also some risks involved in Equity Investment. Stock Market Volatility is the biggest risk.

Professional Investment Experts believe that on an average, the stock market declines 10% every 12 Months, 20% every 5 Years and about 30% every Decade.

So, if you have Extra saving, always prefer Investing In Stocks as compared to other Investment Options. This will protect you from inflation.

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Santosh Das

Santosh is an Electronics Geek, Blogger and Young Entrepreneur. He possesses vast experience in the field of Electronics. Santosh has been an Investor and Investment Portfolio Manager for the Past over 20 Years. Keep visiting for daily dose of Share Trading and Stock Market Tips and Tutorials.

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