Over the several years many investors no matter experienced or beginner book profit by investing in the stock market during several different times.
Stock market is the place where investors gain a huge amount of profit in a short span of time by purchasing the right stock with their experience and luck.
Not every time it works for other investors to gain profit from the same stock by following the profit making investors, it may be the time experienced investor investing and others are different. After all, the stock market is unpredictable, that’s why it is the best asset class for investing.
Diversification: – It is hard earned money of investors and they always try to play it safe and here comes diversification in picture. Diversification helps investors to put their money in different assets, bonds, mutual funds etc. to minimise their risk exposure according to their risk appetite. High diversification towards the equity for a long run gives you enough ideas to tackle loss and make huge profit.
Dividend benefits: – It is a reward which is given by the company to its investors. In other words it is an additional income for the investors which is given by the company on a yearly basis. No matter if the company itself is in loss the investors are always going to get a dividend.
Liquidity: – It is highly liquid because it traded on daily basis in NSE and BSE on a lot basis, hence there are lots and lots of buyers and sellers active on this platform. Hence investors can get their money on a specific time or date whenever they want. In comparison to other asset classes like building, machinery, land etc. stock has much more liquidity.
They are well protected by SEBI: – SEBI (Security Exchange Board of India) is a regulator body for the stock market that basically protects investors as well as stock market for any type of fraud. When investors put their money in the stock market SEBI gives security to their interest by protecting their money from any fraudation by the companies. This helps to reduce the risk for investors on their investments. If some one wants to helps before investment than take advice only SEBI Registered Investment Advisor.
Higher return over the short term: – Stock market is the place where an investor can get the highest return within a short span of time in comparison to FD, Saving Account, Bonds etc. Various investors want quick return just after an investment, thus stock market is only place for them.
Ownership of a company: – When an investor buys a share of a company that means they bought that much of percentage ownership of that company. Now they have voting rights in that company about whatever the decision company makes. Investors now have the power to vote in that company. Companies also show yearly performance to their investors to always keep building the trust in the company.
Easy process of buying and selling: – For buying and selling in the stock market made it easier and quicker for all investors. Buying and selling the stock is done with the help of a broker, demat account and online basis. It hardly takes a few minutes to set up a trading account and start trading from anywhere. An investor can buy or sell shares in the stock market anytime and from anywhere according to their convenience. If investors takes advice from SEBI Registered Investment Advisor before investing than there are less chance for loss.
Flexible to invest small amounts: – New investors can invest in the stock market with a small amount to gain experience. They can invest in the small and mid cap market to get more exposure towards the profit. Another benefit for investing with small amounts is that investors can get any amount of stock and it is not mandatory for them to keep investing every month or year and can play the safe side.