Because, it is the shortest way to money and success. NO!!! If this is what comes to your mind, then you are totally wrong. Shares or say any other instruments are not any sure-shot short-term plan for success. Investment in shares is not a calk-walk, it requires a well research and proper planning before you invest in shares to earn handsome profits or else you can just invest in any other shares and get returns like any other guy.
Equities or Shares are directly linked to the company’s growth so they are commonly known as growth assets. The Hoax created around shares that they are cash cows or brings fast money is because of the fact that they have consistently out-performed Govt. instruments like bonds, properties and other types of assets. This doesn’t undermine the fact that shares are a risky business but the risk is definitely worth taking.
Here we have few points to help you why you need to invest in shares:
Like POKER game, you don’t need to go all-in
You might have a practice of going all-in in a go in your poker games but share market doesn’t play with the same rules. In share market, you make a sweet small bundle of a mix of varied stock, which will include high risk and low risk shares to balance the risk and fetch you the most returns.
Stocks displayed the most potential for growth
Shares and real estate have shown the most potential for growth in the recent future and have consistently performed well. An investment in the real-estate and shares of reputed company has never gone in vain and has always fetched higher returns when compared to other instruments. You cannot depend on FD’s and bonds forever.
To keep pace with the rising inflation
Nowadays, we are already witnessing high inflation rates due to which our purchasing power is decreasing so we shall be taking immediate steps to retain our savings or put our money in some good use. Your fixed deposits cannot save you from this inflation as mere 5-7% won’t aid you against prices hikes so you need to invest in stocks of high performing companies which will fetch you good 15-20% returns.
Your money will work for you
Because, money attracts money. Yes you need to let your money work for you. When you invest in a stock, try to keep patience and wait until it fetches you good return and when the value of your stock gets at its peak then you can sell it. The prices of stocks may fall in the short run but if you are willing to take a risk and be patient then you are sure to get high returns.
Don’t underestimate the power of Compound interest
Most of the banks give you simple linear rate of interest on your savings which doesn’t really adds up a lot to your investment. While on the other hand if you invest in stocks of the companies, your ROI on the sum of money will be compounded annually, this will grow your investment exponentially.
To know more about the stock market and start investing please visit begininvest.com