Is Investing In The Stock Market Safe?

The transition from a college bachelor to a responsible young adult might have made you realize how effective is money in one’s life. Money and wealth are different terms, mentioned by various investors in their speakings. This has made the coming generation realize the importance and now everyone wants this mode of getting rich. Even the Indian market has set ground rules taking into consideration of the rising demands. But many groups lack the stock market knowledge and still think of it as a wrong idea to indulge in. Still, there is a common myth among people that the stock market comes with luck, a poor can get rich or the average will fail due to bad luck.

But there is much more than just the risk and luck of stock returns. Indian Stock Market has been great support from past few years, elaborating schemes and giving common people chance to start with cheap rates and risk-free. There are opportunities for investors and companies simultaneously and proper monitoring is done.

There are a few reasons that will convince you to invest in the stock market:

  • Start Small Portion Investing

Whenever you start something or build a house you invest a certain amount and some risk or loss involves in there. But investing in stocks of certain listed companies, the risk involves is barely minimum but profit is legit promising. This way investors can start with buying smaller shares and eventually get a profit with them. By practicing and knowing better this market, investors can add on to the holding stocks and get profit. They can also research and buy different companies’ stock over time depending on the profit history.

  • Liquidity

The stock market came with a common idea of digitally managing wealth and growing it. Dematerialization that is opening the Demat account was one of the key processes. Investors can sit back and buy shares and sell it or either hold them as per they wish. This is just like ordering pizza from Dominos. It minimises the ongoing hassle and efforts of investors.

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If you buy one stock, the amount equivalent to the stock gets debited from your trading account and once the value of stock rises, same gets credited to your account. In the same case, when you sell a share, the price hits and amount gets credited to your account in next 2-3 bussiness days. This way investment works and makes the process liquid.

  • Stake In Profitable Bussiness

With the purchasing of certian amount of stock of some company one can take the advantage of exisitng stake of the bussiness too. The bussiness in which you have invested in alredy is in good condition and operating stage, so you can put a little effort and make money out of it. It is an advantage above all to get furutre profits holding such shares.

At the year end, the listed companies distribute their profits among investors in form of didvidends, which is also an advantage. This distribution can be done as share or amount paid per investors and as per their equity. For example, you have hold of 100 share units of any company. The company decides to distribute dividends of Rs. 20 per shares, then with this you will receive Rs. 2000 in dividend form.

  • Investment Choices

Every investors seeks to invest in certain shares that are likely to show better returns in furutre. They have this freedom. It is an open market and every investors can make a choice to buy a stock of lower price and get profitable returns.

  • Low Brokerage And Easy Negotiation

Stock market has made easy ways of investing. They have brokerage houses and they may help you with guidance in best affordable pirce. Anyone can negotiaite and make their choice of deals. This makes the process easy and smooth. Not only this, with less brokerage fees leverages in paying any additional fees further.

  • High Returns

The only reasons now a days people are so into investing is the proiftable returns. It is much more assured than any other mode of making money like fixed deposits. Investing in business usually give more returns than any other modes of investments. So, it is advisable for all investors out there to research and take guidance from your broker and then decide which stock to buy. The stock should be stable and give nominal profit returns.

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At Last

Now answering the top most query, is it safe to invest in the stock market? Well, Yes! It is safe and profitable. But taking a major decision requiures understanding and research, so does it acquire here. Make your move count. Never risk the chance in hurry, always be a little cations otherwise looses one has to bear. By the saying, “Hurry makes bad curry.” This does apply here as well.

Investors should always know the background of the business they ae going to or planning to investing on. It is always advised to look into the performance history, get feedback from brokers and analyse. Only after that makes the investment fruitful. Every fruits comes with alot of hardwork and patience. But, once the work is done, you get pleasure of that reaping.

Work smart and Happy Investing!

Shivangi Singh
Shivangi Singh

I am currently pursuing my Bachelor's in Aerospace Engineering in my final year at the University of Petroleum and Energy Studies. I like to read books and learn new things that help me in my overall growth. I am a people person and love to know and interact with new people. I also like to visit new places and learn about its culture, food and history.

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