Why Should You Invest in Stocks and Shares

Benefits on investing in stocks and shares

Everyone like to become wealthy. Stocks and share investments historically proved are the best investment instrument to become wealthy if invest for long term.  However, lots of the people still don't know why to invest on stocks and shares. Here are the reasons to take stock and share investment path:

Why Should You Invest in Stock and Shares?

1. Stocks are the simple yet powerful investment instruments to generate wealth for long term.

2. Lots of investors became wealthy by investing sensibly on good stocks.

3. Stock investment can be made for any goals such as Children's Education, House, retirement etc..
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4. Your goals that has more than 10 years time span, investing in shares are the best suitable option.

5. Stocks and share investment can be done directly and indirectly.

How to Invest in Stocks and Shares.

1. Direct investment can be made by opening a trading and DEMAT account with a registered stock broker in your area. Direct stock investment can be made either SIP (Systematic Investment Plan), or through buying as lump-sum.

2. Equity mutual funds are the option for less experienced investors to invest in stocks and shares. Some funds made their investors rich by 1 crore with their investment amount of just Rs. 1 lakh invested 22 years ago.

3. Select index mutual fund to invest and take the advantage of listed companies for long term.

4. Investors can buy ETF (Exchange Traded Fund) directly from stock market through using their trading account.

For experienced investors, it is best to use the direct investment through trading account by investing on good stocks for long term.

For starters, selecting and investing through equity mutual funds are the best option for new investors. Systematic investment through registering a SIP with mutual funds are the most recommended methods to invest in mutual funds.

People with little money but want to start direct investments, can opt a SIP through their trading account with the shares of 2 or 3 good stocks with a very small amount. For long run, this would give a beautiful portfolio of good number of stocks.

Housewives can also opt investing small amounts systematically in every month through mutual funds or SIP directly through trading account.

Why Invest in Stocks? Top 15 Benefits in Nutshell

  • Wealth growth potential
  • Diversification benefits
  • Passive income generation
  • Hedge against inflation
  • Ownership in successful companies
  • Capital appreciation opportunities
  • Accessible to individual investors
  • Long-term wealth creation
  • Portfolio risk management
  • Tax advantages
  • Market liquidity
  • Professional management (mutual funds)
  • Investment education
  • Retirement planning tool
  • Economic participation