Capital Markets……A place where all
the investors come to earn profits and the companies come to collect some funds
from the public for their upcoming projects. This capital market of a
particular country has a potential to evaluate its GDP and overall growth when
anatomized meekly. Well, after saying all this, let me evaluate some factors
which are very crucial for your investment,which make you think why the hell
should you invest in the capital market?
There are n number of motivations to
invest my hard earned money in share market. Out of which I would like to list
out the top Seven of them one by one.
Reason
1: Good Returns – Yes, this is the major
factor why should you invest in stock market. When invested in a good
portfolio, it could give you a return of approximately 25% whereas banks offer
you interest rate of around 7.5% that too when taken on a higher note. This
will help you to curb the effect of inflation and give you the buying power
rather than taking it away from you (when invested in a bank)
Reason 2: No
Congestion of Money –This is the second reason why you should invest your money in
capital market. Capital market gives you the freedom to take out your invested
money at any moment of time within the trading hours. Unlike banks to be more
precise, FD’s where all of your capital is blocked for the maturity period,
your investment is much more flexible in the capital markets. For a paradigm, If
you what to draw out your money In case of emergency you can withdraw your
money at any point of time from capital market. But in the case of fixed
deposit, you will get a less rate of interest on your investment when withdrawn
before maturity date.
Reason 3:
Secondary Source of Income –You heard me right. Young generation and also the elder one
can have a better generation of secondary income from their investment from
capital markets. Rather than keeping your money in banks, park your money in
market. It could generate a robust profits for you.Also the retired
professionals could reap the advantage of capital market.
Reason 4:
Earn form dividends –This is the extra money you will earn apart from the profits.
Dividend is in the form of money. No other investment plan anywhere on the back
of the world would not offers you extra money. It is only share market which
offers you the supplementary money. When any company declares dividend that
means there is a profit to its shareholders.
Reason 5:
Wide options of investment –Share Market offers you a wide range of segments to invest
your capital in. It have the option of Equity, Commodity and Forex which are
further divided into Cash & Derivatives, NCDEX & MCX,D-Forex respectively. In cash market
itself there are about 5000 companies listed on BSE and 1600+ companies listed
on NSE. It means you have around 3000 various investment options where you can
earn profits.
Reason 6:
Bonus –Bonus
in stock market is the additional number of shares the company gift the
shareholder for his number of shares held in the past. This is a chance for the
investor to earn more money as the company provides bonus shares to its
shareholders. More number of shares in the portfolio means more would be the
profit.
Reason 7:
Transparent Procedure –The method used to invest your money in share market is exceptionally
transparent. You can even track down the time and price on which you bought or
sold the particular share or commodity or currency even after years. This has
been the reason why most of the people like to invest in share market.
These are the seven important reasons
to invest in the stock market.
Other than this I would like to share one more
investment tip and that is: Treat Stock market or investment as your child.
Invest equal amount of money in stock market or Mutual funds or fixed deposits
etc. as you spend on your child. It will help you in your post retirement life
when your children would be out somewhere in the world busy making their career
and could not be there for you at a particular said time. But, your investment,
your additional child would always be there with you to help you out of any
problem……..Ponder over it……. Its Definitely worth Giving a THOUGHT……..Isn’t
it???
By Aniket Mandlekar
Comments
Post a Comment