Share market investing is trending on social media, in the news, and among individuals. People claim that they earn in lacs or even crores. Like me, do you often wonder why is it so hyped and if should you too join the herd of investing in the Share market? This article will tell you all about it.
Why is the Share market investing increasing in 2023?
People of late have realized the importance of investing and particularly in the share market. This does not mean that our forefathers were not keen on investing. However, they were a little conservative or defensive about their investment. They used to invest in FDs or in govt bonds which did not yield much profit, however, they were safe to invest in.
The current generation however is aggressive in its approach to investing. They are so aggressive that many of them have started intraday trading too, which we do not recommend by the way. Of Course, you have to be aggressive, but I believe you need to have controlled aggression while investing, which is a short-term or long-term investment.
The youth have realized that just earning money won’t do much, you will need to grow it by investment to really be free of EMIs and debts, and that’s where the trend of the share market began.
So now the question is should you too start investing in the Share Market? Well, it depends on many factors and I want you to decide for yourself by analyzing the benefits of investment in the share market which are listed below.
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Top 5 Benefits of Share Market Investment
The share market brings a lot of opportunities for its investors. Below we list 5 of the benefits it offers.
Higher Returns in a Short Time
The share market promises higher returns in a short time!
The main reason people start investing in share markets is the enticement of earning higher returns in a short span of time. To a point, you can indeed earn multiple folds in a very short span of time in the share market. However, you need to be strong in your knowledge of the markets and the stock you are investing in. Learn the fundamentals and almost everything about the company that you are investing in and you will succeed.
Intraday is the main vehicle of investors earning multiple folds in a short time. However, intraday also has higher risks. It is tough for you to judge the performance of a stock in a day. People well-versed in the technical analysis do earn well in intraday trading. However, it is not mandatory to earn well consistently even if you are an expert in technical analysis.
If planning for short-term returns, then short-term trading which is holding a stock for a week or a month is perfect for you. That has lesser risk than intraday trading and can give you good returns.
You can Start Small and Grow
Another big benefit or advantage of investing in the share market is that you can also start with a small amount.
You do not need to have lacs in your bank account to start investing in the share market. You can start with as small as 500 rupees. First, you have to pay a minimal account of registering with a brokerage firm like Zerodha or Groww and then you can start with the smallest amount that you have.
We would advise you to keep an amount at least in thousands like 5 or 10 thousand, as very small amounts are usually eaten away by different charges levied on buying a share. Though, you need to understand the investing fundamentals and technicalities before starting to invest.
Also Read: Top 5 Stocks for Long-Term Investment
Weapon Against Inflation
Investing is the only wall that can be built between your money and inflation!
Inflation cannot be controlled by anyone but the government they say. However, I would say that the share market can beat inflation. If you have closely analyzed the interests in FD or other investment opportunities, you will see that it is even less than the rate of inflation.
What is the use of such investment? Share market on the other hand can guarantee double the returns at least in the long term with low risk.
Be your Own Boss
Share market allows you to be your own boss!
Investors in the share market are their own boss. They do not have people telling them what to do, when to do or how to do. They work at their convenience and make their decisions independently, which is no less than entrepreneurship.
Liquidity
Share market investing gives you the ease of buying or selling at your convenience!
Investments like real estate or gold cannot get the right buyers at your convenience. If you urgently need money, then it is tough to immediately find the right buyers in a short span of time. The shares, however, offer the convenience of finding buyers in seconds or milliseconds.
The price can sometimes be lower or higher depending on the sentiment of the market, but you will surely find a buyer. One way to sell at a good price is to diversify your investment by buying shares of different sectors.
Investing in the share market can be a great decision for you provided you do the planning wisely by gaining a thorough understanding of the working of it. Gain good control over the fundamental and technical skills of analyzing a share and start investing.
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