9 Reasons to Invest in Stock Market

Regardless of economy's ups and downs, the stock market has consistently proven to be a good place to invest your disposable cash and save for your future. Your savings won't return much if you leave them in a low interest bearing account. Diversify your savings to stocks by maintain liquidity with your savings account.  

But the stock market can be risky if you don't know what you're doing, so you might need a little smart work before taking the plunge. We'll lay out the reasons you should consider investing in stocks.

1.  Potential for growth

Market has had it's ups and downs, but over a period of time your assured to get more return by investing in Stocks than you would with Bonds,saving account or commodities. There are multiple instances where investors gained much in a short period. 

2.To overcome inflation effect

Inflation is the state where prices are increasing and purchasing power decreasing. To keep in pace with inflation it is important to invest in high return producing options than inflation rate. Stocks will easily beat inflation and produce good return.

3. No lock in period

One of the best thing is  you can invest in stocks without any time lag i.e. short term or long term. You can hold stocks as long as you want.

4. Passive Income

By just investing money in share market you can make money work for you. You don’t need to anything to get it rise. Your portfolio will grow itself as company growing. It gives you time opportunity to work on other tasks.

5. You can invest small

You don’t need huge amount to invest in stock. You can start investing with small amounts as you can. If you are a first time investor you can start it from part of your savings.  There are number of stocks whose price is very less.

6. You do not need to be a masterminded

For investing in stock market you don’t need to posses any degrees or achievements. You can easily understand it by just by observing market and reading information available on books/news.

7. Easy approach

For investing in stocks you don’t need to go anywhere or fill forms. You can create Trading Account with any broker just in their website as you desired. Now a days from the very first day you can start investing after creation of Trading account.

8. To diversify your investments

Diversifying your investments by including some stocks keeps your wealth portfolio balanced. Often times inflation in high market will get up. You can better control your financial needs by keeping portfolio balanced.

In other words, Don’t put all your eggs in one basket.

9. Multiple earnings

Investing in stocks provides earning from multiple sources like dividend,capital appreciation, Bonus shares , benefit of mreger/buyback etc.