Share market ,why should you invest in stocks?
What are stocks and share markets?
If you don't find a way to earn money while you sleep,You will have to work until you die .
This is said by Warren Buffett.
And the only thing which can earn you with out much hardwork is the investments.
#Why should you invest in stocks or share market ?
1. HIGH RETURNS
suppose you had 2530 INR in the year 2000 and you kept it some where in your house and let's just ignore inflation rate and depreciation in value of rupee then its value after 20 yrs will be same but, If you had same 2530 INR and you had purchased a single share of MRF which worth around 2530 rs in yr 2000 then it gives you 82500 INR today .
This is power of investment in stocks.
Various studies have shown that over long period of time stocks generate investment returns that are superior to those from any other asset class.
2. INVESTMENT OPPORTUNITIES TO SMALL INVESTORS.
did you also think that you need huge amount of money to invest in share market ?
No you are definitely mistaken, you don't need lakhs and crores to invest .
There are shares of renowned companies which are less than 3 INR .
You might know vodafone Idea the share price of this company was 10 .9 INR on 19 feb 2021, Reliance Power share price was just 3.1 INR ,Rattan power india share price was 2.75 INR
Thus you don't need huge amount to invest.
3. COUNTER INFLATION
Inflation is common rise in price levels in an economy. it lowers or eats into the value of your investments and purchasing power of your money.
Your parents must have told you that at their time they could buy lot food items in just 10 INR but it is hardly possible ,so you can understand that inflation is at high rate and it affects your money.
Bank FDs and PPF can hardly combat inflation.
Thus INVESTMENT in stock market is great option.
4.EASY TO PARTICIPATE AND FLEXIBLE
Investing in share market is very simple . You just need a disciplined approach to invest for longer term and a little bit of research about companies or business you want to invest .
All you need is a demat and trading account to buy and sell shares in stock markets.
5. LIQUIDITY
Common shares can be bought and sold more quickly and easily than other investments, such as real estate,art or jewellery .
This refers that investors can buy or sell their INVESTMENT for cash with relative ease.
Apart from these major benefits you should invest in stocks BECAUSE
You can own a part of a company you love when you buy even a single share of company you are officially a part owner.
When you buy Apple stock you are actually an owner of company and the fun is TIM COOK Apple's CEO legally works for you, investing helps you in better understanding of economy and businesses, it has unlimited opportunities from small saver to huge investors ,
Moreover you can get tax free profits,
It helps consumers to grow with companies.
Now when you have made your mind to invest let me give you some financial education about stock market .
#What is stock or share ?
Let me tell you stock refers to ownership certificate of any company and is also called share certificate.
Stock ownership implies that the share holder owns a slice of the company equal to the number of shares held as proportion of companies total shares.
One question might come into your mind that why does a company lists itself into stock exchange or why they share their profits?
We see most of corporate people had its start as a small private entity with some visionary founders and when they grow they need more capital to grow so they sell ownership in form of shares for money.
When a company establishes itself ,It may require larger amount of capital or money, than it can gain from ongoing operations or bank loans.
Thus , company sells it's share to public through an initial public offering (IPO).
Once the company's shares are listed on a stock exchange and trading in it gets started, the price of these shares will fluctuate according to demand and supply of buyers and sellers.
And then you can buy or sell shares from stock exchange.
STOCK MARKETS are the secondary platform where existing owners can transact with potential buyers.
You can say here buyers meet with sellers .
You might have heard words such as
BSE or Bombay stock exchange
NSE or National stock exchange
They are nothing but such platforms where you can buy or sell shares.
Now you should know that typically you buy shares from share holders not the company it self.
#ODD ANGLE INTO THE TOPIC
India has a population of about 135 crores but ONLY 3 CRORE people have demat account!
Some where our people are lacking knowledge and cannot enjoy the benefits of these kind of things. And it is totally because of lack of financial education and awareness about its importance.
In this era of lockdown when every thing is under shutdown,then also stock market is working and giving returns to people who have invested their money into it. Lastly, don't keep your money idle, use it and make profit out of it. Invest!!!
So what are you waiting for? Be ready to invest and gain!
Invest now by opening a demat account wit best broker ZERODHA
LINK BELOW
Invest and trade with Kite by Zerodha, India’s largest retail stockbroker. Open an account
https://zerodha.com/open-account?c=FH6792
Team odd angle
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Deeksha pokhariya
Nandini rawat
Khushi soni
Anushka yadav
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Mayur Srivastava
Jatin Mathur
Idea and execution : Jatin Mathur
Edited by: Mayur Shrivastava,Anushka yadav and Jatin Mathur
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Stock investments are most underrated financial medium start your INVESTMENT now.
ReplyDeleteIf you don't want to invest drop your reasons below.
Informative
ReplyDeleteVery informative!
ReplyDeleteShare market is no doubt going to be the prominent option for investment in future.
ReplyDeleteThe role of stock markets as a source of economic growth has been widely debated. ... By facilitating longer-term and more profitable investments, liquid markets improve the allocation of capital and enhance the prospects for long-term economic growth.
ReplyDelete