Reasons To Start Investing In Stock Market Today

Money is like a magnet as it attracts people from all walks of life. And what’s better than investing money in stock markets that promise amazing returns in a shorter period of time. But when it comes to investing in stock market, people may not feel fully confident about taking the next step ahead.

A large number of people consider stock market investment as gambling and refrain from getting indulged in any such activity. However, over time, people have come over this misunderstanding and started investing in the burgeoning stock markets. If you’re still losing that much-needed confidence for stock market investment, below are some great reasons that would surely push you towards putting your money in stock markets through the best stock broker in India.

1. Possibly Impressive Returns

There is no doubt that investment in stock market tends to grow much better than other investment channels. The reason is the power of compounding that promises higher returns on your investment in the long run. Whether you want to buy your dream property or want to go on a luxurious world tour, stock market investment can help you pursue your dream easily and confidently.

2. Easy and Flexible

Investing in the share market is extremely easy. All you need is a meticulous tactic for long-term investment and some level of research about the stocks you wish to invest in. You can do it yourself or choose from the best stock brokers in India. All you need is a trading and demat account. As stock market investment doesn’t have any kind of lock-in period, you can choose to buy and sell shares at any time when you want. The amount that you invest can be as low as Rs. 100.

3. Manage Inflation

You can’t deny the fact the inflation is growing rapidly over the past few years and you can’t avoid that. The easiest way to counter that is to increase your home and this is where stock market investments could help you do that. The inflation in India for the last few years has been nearly 4-5%. The return on the savings account (Interest rate) is just 4-6% per annum. Hence, a savings account cannot counter inflation.

On the other hand, if you carefully invest in stock market, you could get 10-25% return on your investment which is big enough to go with it.

4. Make money work for you

There could no other powerful way to leverage the power of compounding. You just need to be regular in terms of investment and within few years, you would notice that you have accumulated enough wealth that could help you do a lot of things you always wanted at one time.

Your invested money will grow as the stock grows. In the meantime, when your money is growing on its own, you can use your time in whatever way you want. In this way, you can make your money work for you.

5. Start investing with a trivial amount

There is a general misapprehension among a majority of people that they need a big sum of money to start investing in the stock market. However, that is totally baseless. You can begin investing with as little money as required to buy a burger. There are a number of stocks whose price is less than Rs 100. You can invest an even very small amount of money and start accruing impressive returns. This option is not available in other for other types of investments like savings account or real estate. Visit top brokers in India to know about these stock and tips.

6. No special skills are need for stock market investment

You do not need to be an expert or rocket scientist when it comes to investing in stock market. Contrary to kicking off most business or start-ups, the stock market needs only a little money, some basic mathematics, time and interest. Anyone can get huge returns by investing in the stock market.

7. Get tax benefits from the government

Long-term capital gains (investments gained for up to 12 months) are tax-free. Short-term capital gains (investments held for less than 12 months) are taxed at 15% + 3% cess. Any capital loss after the offset can be carried forward up to eight financial years.

If you invest in ELSS, you could save tax under section 80-C over your income. ELSS usually come with a lock in period of 3 years , which is minimum among all tax saving channels. Therefore, with ELSS, you get the benefit of tax saving along with the revelation to stock market.

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FAQs

Can I have separate demat and trading accounts?

Yes, certainly you can have a number of demat accounts and trading accounts. But you cannot have multiple demat and trading accounts with one stockbroker.

Can I trade when market is closed?

No, inappropriately, you cannot trade after the market is closed. The usual trading hours are between 09:15 AM to 03:30 PM.

Can I trade without a stockbroker?

No, trading without a stockbroker is not realizable. NSDL (National Securities Depository Limited) and CDSL (Central Depository Securities Limited) are the government registered depositories which manage and monitor a number of securities such as stocks, equity, derivatives, commodity, etc. in digital form.

Stock brokers are like intermediaries between the investor and the Depository Participant (DP).

How to get good companies as there large numbers of publicly listed companies in the stock market?

One simple option is to use a stock screener. By using stock screeners, you can apply various filters (like PE ratio, debt to equity ratio, market cap etc.) relevant to the industry which you are examining and fetch a list of limited stocks based on the chosen criteria.