Why we should invest in stock market?

Everyone wants to multiple their money as soon as possible. There are mainly some limited options available in the market i.e. Fixed Deposit, Property and Stock Market to invest and earn returns on it.

Bank Fixed Deposit, Corporate Fixed Deposit, PPF, KVP, NSC, Tax Saving Bonds are few options to invest money But in these options money gives return in single digit 6% to 9% only and the inflation also increases same way in during these years. So ultimately the value on the investment gives zero returns at the end of the investment period. If someone get more than this have to pay income tax as per their tax slab.

When we are talking about stock market investments, that they give the highest potential returns in two digits or if you vast knowledge of the stock market, one can double their money in two to three years time.

Advantage of stock market investments:

• There is no lock-in period while other saving instruments have lock-in period as per their term & conditions.
• In need of any emergency you can sell your shares and get the money in 3 working days in your bank account.
• In property investment, it is very difficult to sell it easily when anyone facing financial crisis or during the slowdown in the property market. Also there is risk of fraud and cheating in this segment.
• Stock market gives freedom to choose the sector or any company you like or have the detail knowledge of the company process or any other related information about the future growth etc.
• Apart from giving high returns on investment from stock market you can save tax also i.e. short term gain tax slab 15% and long-term gain tax 10%.
• If you are new to stock market, the simple way to invest in Index fund i.e. Nifty index fund & BSE index fund where you will get the return as per return of the Index performance. Here you need not to worry about how to choose the stocks and their other credentials. Index fund is a bucket of top performer stocks in their sector. If any stocks not do better as per index measure they will remove from the bucket list and new stock take place of the not performing stock.
• Investment in stock market is purely a long-term process. If you really multiply your money first choose the good beaten down stocks and invest in them step by step. After a period of 3 to 5 or may be more your return can 2 to 3 times.
• Investment in stocks is a tension free work comparing to job or traditional business. There are many up and downs in the job and business as compare to do trading in stocks.