Benefits of Investing In Stock Market
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Stock Market Investments offer you some great benefits, which you won’t find in many other investing instruments available.
The main benefits of investing in stock market are,
- Easy Liquidity
- Flexibility to Invest/Dis-Invest
- Maximum Returns
Benefits of Investing in Stock Market
1. Easy Liquidity: It means that, if you want to buy the shares of any company in the stock market then you can easily find the sellers in the stock market.
In the same way, if you want to liquidate your investments and want to sell the shares you already have, then also you can easily find the buyers for your shares. Because, there are 1000’s of Buyers and Sellers available in the stock market for particular security at any time at the given price.
Therefore, this is one of the benefits of investing in stock market as you can easily liquidate your investments anytime.
2. Flexibility to Invest/Dis-Invest: As most of the investments like Bank Fixed Deposits, Mutual Funds, PPF’s etc. have a specified lock in periods for the investments. Which means, that if you want to invest your money in these investments than you have to invest at least for a particular period of time i.e. known as ‘Lock-in Period’, like if you withdraw your investments before the lock-in period you will not receive the same benefits on these investments as guaranteed.
But, if you are going to invest in stock market, then you can invest your money at any point of time and withdraw your money anytime after liquidating your investments.
So, this is another great benefits of investing in stock markets, where you can invest and dis-invest anytime you want.
3: Maximum Returns: Shares are the most popular form of stock market investments because of their higher potential in capital growth. Also in the long run it is found that investments in equities gives the maximum returns.
So, if you are looking for inflation beating returns than investment in stock market can provide you the same.
There are many businesses/companies that have provided exponential returns to their shareholders, few companies about whom I’m talking about are Infosys, Eicher Motors, ITC and many more.
Bottom Line
So, as you have gone through the benefits of investing in stock market, well to summarize it in few lines about benefits of investing in stock market, it’s true that stock market investments provide you exponential capital growth but you can’t even ignore risk factor attached with the stock market investments.
But, there is another rule of business that says that,
High Risk = High Returns
…and same is in the stock market investments.
So, if you are thinking about investing in stock market, I would definitely say that Go Ahead! but be carefull that you don’t fall in prey’s like Hot Stock, Hot Tip, Cool Recommendation and so and so.
Till then stay tuned to get all the future lessons on how stock market functions, and don’t forget to subscribe to the newsletter below if you have not done so far, as you will get future posts directly in your inbox.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
