Why You Should Invest In Stock Market

 




 

       Why You Should Invest In Stock Market


Yes,  the  first  question  comes  that what  is the need of investment, after  all,  why should we  invest,  I talked  to  many   people   about   this and I was surprised to hear from some people that  their answer  was  " what would  we  do by investing " madam? We will die   then   what   to   need of  investment , but they never think what happened to them if their parents had also thought the same.


READ THIS ALSO : How To Make A Profit In The Stock Market


Why You Should Invest In Stock Market


So let me try to explain, what can happen if you don't invest, let's say you  earn  Rs 50,000 every  month  and  Rs 30,000  is  your  monthly expenses. And your monthly savings are around  Rs 18000 to 20,000, to make it easy we don't add income tax in it. Now suppose that..


1. Your  company  takes  good  care  of  its employees and also gives 10% increment every year.


2. Cost of living – Cost  of living increases by 8% every year.


3. Let's say  you are 30 years old and want to retire in 50 years,  then  you  have only 20 years to earn.


4. If you won't be able or you don't want to do any kind of work after retirement.


5. If your expenses do not change.


6. You save Rs 20,000 every  month  already with you in the form of cash.




If you add 20000 rupees per month for 15 years, then you save about 1.70 Crore, all this is my calculation, if  you  want you can also do it, it depends on  you  whether  you  keep, in the  bank  or FD or in LIC, then what will happen now and may be...


1. After 15 years of hard work, you can add only 1 crore 70 lakhs.


2. Because  as  happens  to  everyone,  it  happened  to you that your expenses  were  fixed,  and  you  did  not  change your way of living. Perhaps  you  must  have  suppressed  many  of  your desires like car, house, roaming etc.


3. After  retirement, if  expenses  increase @ 8%, then  you  will  lost 0.93 crores  in  8 years, and think about it what will you do after that.


What will  you  do  after  8 years,  when  your  entire savings will be exhausted. How  will  survive  you after that ? Is there any other way to add more than 0.93 crores in 15 years ?


So I am going to tell you  about  such a way, which you can read and understand  and  invest  yourself  without  any  help, just you have to read carefully all the posts related to this, not  only  my this post, you will get all the information here in one place.


Why You Should Invest In Stock Market


Where should you invest :-


As I told you " why you should invest ", now I will tell you " where to invest ".


There are 4 options for this, you have  to  decide  that how much risk you can take, how much return you want.


You can Invest in below places :-

1. Equity

2. Real Estate

3. Commodity

4. Fixed Income


Most  of  people  know  about  option  2  and  4, ( if  you  also  want information  about  the  same  then  you  can ask me in the comment box, ) now only equity and commodity remains,


So let's understand about the Equity first :-


Investing in it means, buying shares of companies  which is listed in the  stock  market. Shares  are  traded  on both the stock exchanges – Bombay   Stock  Exchange  ( BSE )  and  National  Stock  Exchange (NSE).


READ THIS ALSO : How To Make A Profit In The Stock Market


There is no profit guarantee in equities, but the returns are very good. that's why share market attract to everyone. The stock market returns have  given  returns  of 20 to 25  percent  in  the  last  20 years. Many well-known trusted companies have given  return  up  to 25% CAGR in the long turn.


But finding such companies desperately requires skill, hard work and patience. There are many companies that  have  grown  manifold in 5 years and there are many companies  that  give  dividend  from 1 to 5 times in a year, what is  this dividend, we will tell you further, please read this post carefully. stay with us..


Today, very few people invest money in the share market, the reason is that only 4 to 5% people  are  successful  in  the share market, who earn  good  money,  the  rest  about  10%  people  are  such  who earn money but not a lot.


People do not have / take proper  knowledge  of  share  market  when they enter in share  market  without knowledge they lost their money, thinking  that  investing  money  in  the  market  is like gambling and they  stop  investing  also  advise  other  people  not to invest in stock market.


Now comes the commodity :-


Gold - silver, pulses, sugar, gram, these are called  commodity, it can also be a good investment option in the long term,  the  price  of both gold and silver is bound to increase. Both of these have given returns of   around  10%  CAGR  on  investments   up  to  the  last  15  years. Investing in these is most commonly done by  buying  jewelry or can also be done through Exchange Traded Fund (ETF).


I have created this page on the request of many  people  and have put all my experience and studies  in  it, there  may  be many of you who do  not  agree  with  me, it  may  be  their own thinking. if you like & agree with me or also want to learn, then this blog can help you a lot.


I  would  like  to tell you that if you sit in the exam without studying, you will definitely  fail, so  keep  learning. What  is the stock market & how can we invest in the  stock  market  I will let you know in my upcoming  post  so  please  subscribe  my  site so that you can get the notification of my upcoming post.


Thanks for reading


Why To Invest In Stock Market In India


Must Read These Also:-

Technical Analysis Part -1

Technical Analysis Part -2

Technical Analysis Part - 3

Share Market Full Knowledge for Beginners

Why To Invest In Stock Market In India


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