Skip to main content

Why you should Invest your money in stocks?


 Stock market gives you opportunity to be a  part of something big ! Many people considers stock market as gambling I will neither agree nor disagree with them... Because if you put your money in stocks after doing your study on the company then it's investing and if you put your money in stocks after listening to some expert or just because your colleagues/friends brought it then I'll say it's pure gambling. 

Now I'll come to this question, why you should buy stock? So below are the some reasons 

1.High Returns 

Yes stocks do give high returns then FD, Savings Account. Historically the NIFTY Index has given a return of 17%  and they are quite safe too if you invest for long term after doing your homework. So choose wisely. 

2.High Liquidity 

Nowadays stock exchanges provides high Liquidity so in case if  you change your mind then you can easily sell your stocks by tip of your fingers! 

3.Creates wealth 

Many great people says that stock trading is for generating capital and  investing is for creating Wealth !When i say trading then I mean Swing trading not intraday because Intraday trading is the quickest way to financial Suicide.Some examples who build wealth through investing are Warren Buffett, Rakesh jhunjhunwala and Charlie munger etc. 

4.Dividends 

If you have brought some stock of a company and that company gains profits...then they have options two options  (A) They can use that profit in the growth of the company which most companies do and  (B) They can share this profits with investors in the form of dividends. 

Some companies give dividends and some don't it's totally up to them! 

5.Sorce of income 

See the thing is like, in this 21 century you can't be dependent on one source of income, you have to create many sources of income in order to live a peaceful and Financially free life. So for that purpose stocks for long term is best.

Comments

Popular posts from this blog

Some lessons to be learned !! by Peter Lynch

Worth to remember !! 1. Never own anything which you don't understand. 2.Logic is the subject which will help you most in picking stocks. 3.Avoid Hot stocks and Whisper stocks. 4.Once you are able to explain the story to a guy who has 0 knowledge of stocks and he understands properly then you have a real grasp of a situation! 5.Try to invest in companies who has a strong balance sheet and less debt. 6.P/E ratio plays vital role... so compare it with the peer companies, the lower the better! 7.Never listen to professionals, kindly do your own research ! 8.Buying a company with mediocre prospects just because the stock is cheap is LOSING Technique. 9.Selling an outstanding Fast grower because it's stock seems slightly overpriced is a LOSING Technique 10.Market declines /Corrections / Recession are the great opportunities to buy great companies at cheap price!

How to Create wealth ?!

  I will not waste you time by writing unprodutive things , I'll get direct to point ...There are many secrets of how to become millionaire and one of then is TO CREATE MANY SOURCE OF INCOME !  So the biggest secret to become billionaire is to have passive income . If you see all the millionaires and billionaires have many source of income and they know how to multiple their money ! So creating passive income is first step to become financially independent !! Create many sources of income some examples are as follows. 1.Buy home and give it on rent. 2.Invest in Stocks, bond's !  3.Do freelancing. 4.Buy properties , lands !  5.Invest in gold ! etc. There are many ways of passive income you can google it , the above mentions are common and very easy to apply !  But the most important thing is , You must learn one skill and give your 100% to learn and become best at that skill ! Because if you are not good at that skill then anyone can replace you like its happenin...

Are Bonds really safe ?

A bond is an instrument of indebtedness of the bond issuer to the bond holder . The most common type of bonds include government bonds and private company bond .   Bonds are really safe investment then stocks ! Government bonds are alot safe then some companies bond , Issuer issues bond with coleteral which i s very good . Bonds are of many types Fix rate interest bond , Variable interest bond and some more ! Benjamin graham (Guru of warren buffet ) always says, that you have to put 25% of your capital in bonds and remaining 75 in stock . Its like diversifying your portfolio which is good. Spread it as you build it . See if you have 1,00,000 Rs then you should not put 100% of your capital in stocks ... You should divide your capital into some parts like 25% must be invested in bonds (unwritten rule) and 10% in gold and remaining in Stocks i.e. 65% ! There is a saying ‘‘ spread it as you build it ’’ ! So Always divide your capital into many assets !  Some say bond's and debentu...