Do you recall your childhood days, learning about a story of a kid who planted money in his garden?. Thereby growing a money plant that rewarded him with cash for living a celebrated life.
Who would not desire to have a money plant that keeps growing and bears an endless supply of cash?. Growing up, I realized that our claim of growing a real money plant that provided untold sums of money was true.
Only if somebody makes enough investments, these manifestations of money plant will keep growing and readily provide you earnings for a lifetime.
“We can live the dream life if we invest our money in the right exchanges, the stock market is a good option. I and many regular guys like you see the stock market as a real-life embodiment of the mythical money plant. The only thing you need to be cautious of is making the right investments from informed decisions and evading risks that may appear.”
If you are yet to know what the stock market has for newbies and how to sail smoothly in uneven trends, this is the right place to start.
Here are the top reasons why you need to trade in the stock markets. And why it is the most rewarding investment of all time.
Easy and Affordable Investments:
Today’s advancements and the emergence of digital applications have provided a faster, convenient, and hassle-free medium for investing and trading stocks.
Investing with an online brokerage account is simpler and smarter than it used to be. With the help of these online brokerage websites and mobile apps, you can buy and sell stock on smartphones, tablets, or laptops in seconds. You can open a Demat account with any online broker within minutes and start learning stock trading using unreal credits.
Additionally, the advent of many financial news websites and mobile applications has provided an interesting and individualistic convenience of selecting stocks. You are no longer restricted to boring newspapers, magazines, and newsletters to get financial reports for conducting your research.
Apart from research, you can compare stocks, learn how to buy the stocks at a low price, and sell them to get profitable returns. Stocks are called “liquid assets”, which means if you need immediate cash, it can be converted into liquid cash quickly.
The other great advantage in today’s markets is affordability. Investing in stocks is a well-set path for you to make money. You only need to keep aside a small portion of your money for investing in stocks and index funds. It is a practically painless method for earning money for your future.
The Power Of Compounding Is The Key:
When it comes to investing, the concept of compounding helps greatly and plays a huge role in multiplying your earnings. Let your investments wait longer and allow the compound interest to increase them, this will help you get better returns from the investments, and yes this is the best part of investing in stocks.
Let’s move into an example: suppose if you invest Rs 1000 per year on the stocks and receive 7% yearly returns. Now consider investing Rs 1000 for 20 years. You will have a sizable amount in hand by now.
The moment you change the period of investments to 40 years you may have an even bigger amount, around 5 times the amount that you invested.
That’s why it’s often called the magic of compound interest.
Make more money than other investments with stocks:
If you look into the history of money investments you will be shocked to see the tremendous growth of investors in the stock market. And these numbers of investors are growing better than the real estate market, bonds, gold and silver investments, or deposit accounts.
Grow Your Wealth Exponentially:
One of the reasons why people from all walks have an interest in stocks and buy stocks. You can grow your money annually from 7% to 10% over the long term. If you are smart and skilled in the art of trading and have investments in stocks of multiple companies, you could make an amount from 1 lakh per day.
Tax Benefits From Govt Make Stocks Even More Attractive:
The government of India offers tax benefits for people who invest their money in the stock market. For long-term investments, the gain-tax is 10% for gains that can exceed Rs 1 lakh. This still makes it better than the interest of 6.5% from fixed deposits. For fixed deposits, the taxable amount is b/w 10% to 30% based on the tax slab.
Investing Stocks Means "Diversification" :
When you are buying stocks, it offers an option of diversification. You are creating an alternative income for yourself through your investments. It opens up a new source of income for you and your family. Now you have more ways to make money and fewer risks for you, from getting into financial trouble if one method gets disordered.
That means you have now saved some money for your retirement plans, in bank accounts or cash deposits. Giving you means to survive any potential trouble.
Stock Investments are Better Than Sitting Cash:
Inflation is a fact, if you are holding cash sooner or later you will recognize its decreasing in value. This is Inflation, It is a rather strange concept. but it is real.
This means the value of whatever amount you keep today in your safe will get depreciated in the future, say maybe from 5 to 10 years. At the same time, the prices of the commodities and rates of every item you want to purchase will rise.
“ Inflation is a slow process, so to counter it you must invest your money in the many financial schemes provided by the government, including stocks.”
“Investment in stocks promises huge gains which will help reduce the inflation effects on your earnings”
Not just that, with the earnings from long-term stock investments you can fulfill your dreams like owning your dream car or even travel abroad with your family for a holiday.
With the value of stocks rising upwards the more you invest the more gains you shall have. This makes stock investments better than keeping cash in your homes.
Closing Thoughts: Don’t Pause, Start Investing Early:
Our final thought for you is to grow your prospects in stock trading and investments and receive earnings from the growing market. Investors can gain profits easily by buying and selling stocks without too many risks.
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