Table of Contents

Many are scared about investing in stock market because of its risk factors. In spite of those risk factors stock market can give you better opportunities than any other conventional investment avenues like bank FDs, gold or real estate. By avoiding stock market investments, you are actually, missing prospects of growing your wealth.

1. Higher Returns

2. SEBI Is There To Protect

3. Any Amount is Welcome

4. Inflation Can Be Defeated

5. This Time Prediction Is Possible

6. Make Profit In Two Ways

7. Easy To Buy & Sell

Reading Time: 9 mins read

Higher Returns

– #HighReturns

It has been noticed that every 10 years, the interest rate reduces by 3% in conventional investment avenues. So, if you are using only these methods for investment then definitely you are losing good chances to build up a large amount of wealth. The most lucrative advantage of investing in stocks is that it has the potential to generate high returns both in the short and long term compared to other investment roads like Bank FDs. Only you will have to choose them wisely.

SEBI Is There To Protect

– #SEBI_Protected

It is quite an over-discussed thought that the stock market is a place to gamble. But it is only a baseless myth. The stock market like any other industry runs on proper demand and supply logic. The stock market of India is protected by the Stock Exchange Board of India (SEBI). Security Board Exchange of India (SEBI) regulates the stock exchanges, all the operations and norms. SEBI is majorly concerned about protecting the rights of all investors and has set regulations according to that. You can be rest assured that your money is at a safe place. It is definitely safer than any half-known agency or organization who are offering you lucrative interest rates and other incentives.

Any Amount is Welcome

– #small_Amount_Investment

Stock market is the only place where an investor or trader can work with any amount as per their budget and choice. It is not mandatory to invest a specific sum of amount every month or every year. An investor with a small amount can enter the stock market and make profit just like a big player with large amount.

Inflation Can Be Defeated

– #Fight_Inflation

The basic purpose of investments is to grow our wealth and protect our future. While calculating this growth we must keep in mind the inflation rate. Ideally, the rate of return on investments would be higher than inflation. Historically, it has been seen that the returns on stock are proven to be able to defeat inflation rates. To fight against inflation in the economy, investment in stocks can be more advantageous than any other investment avenue.

This Time Prediction Is Possible

– #Plan_Your_Growth

In stock market, you can predict your financial growth by understanding the basics and conducting a proper research analysis. But in case of bank deposits, you do not know when the government will decrease or increase interest rates. It completely depends upon the policy and economy of the country. But in case of stock market investment, you can have a clear idea about the growth of your money if you can interpret different market instruments properly to understand the market. For that you need to learn the basic and advanced analysis methods of stock market.

Make Profit In Two Ways

– #BothwayProfit

There are mainly two types of players in the stock market. The first one is day traders and the other one is buy-and-hold investors. The first group makes profit from short-term trends, while the latter waits for the stock price to grow over time. There is another type of investors who prefer a regular stream of cash. They purchase stocks of companies that pay dividends. Those companies pay dividend as they grow. So, you can earn in two ways from the stock market. But in any case, your earning depends on your stock-picking skills.

Easy To Buy & Sell

– #Easy_Access

It is a very process to easy to buy and sell shares in the stock market. Once you set up an account, you can buy stocks in minutes. You can even easily convert the stocks to cash in very small time. But in case of other assets, it may take longer time. For example, real estate assets are difficult to sell. It can take months to sell a property.

Final Thought

The idea of risk associated with stock market investing makes it more difficult for people and stops them to think beyond the conventional investment avenues like fixed deposits, gold and real estate. But if you learn properly and manage your risk effectively investing in stocks can be the most important value adding instrument for your wealth.

Arunava Chatterjee

Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.