10 Reasons why you must Invest in Stocks

Investing in the stock market is a great way to build wealth. Online investing is simple yet lucrative with the potential for huge returns. Unlike other investment options such as fixed deposits, property etc. investing in stocks is a lot more flexible.

Find below 10 reasons why you should start online investing in stocks today:

1. Build Wealth: Online investing in stocks is a great way to build wealth. The stock market often gives excellent returns in the short term, unlike other modes of investments such as fixed deposits. This is one of the primary reasons people invest in stocks.

2. Diversification: Online investing in stocks gives you a chance to build wealth in the way you want. It is highly customizable, based on the extent of risk you want to take or the kind of time investment you want to make.

3. No minimum amount: Online investment in stock markets is relatively low risk. There are no restrictions on the amount of money you need to invest. You can invest as little as you want and buy as little stock as you want.

4. Easy to do: The process of buying and selling stock is extremely easy for all investors, even those just starting to invest. It only takes a few minutes to set up a Demat account and buy stocks. Investing in stocks online takes only a few minutes.

5. You can grow with the economy: As the economy grows, businesses grow too. This directly affects the stock value of the company. Hence as the economy grows, you get higher returns on your stock investments.

6. Keep up with the economy: Other investment options such as fixed deposits earn fixed interest rates that do not account for inflation. On the other hand, stock market returns are directly dependent on market performance. Therefore, you have the chance to make huge returns that can keep up with inflation.

7. Ownership: Investing in stocks means that you are a shareholder with voting rights. You, therefore, have a say in certain matters of the company and get to decide what direction you want the company to go in. Additionally, investing in stocks can also be a way to express loyalty towards the companies that you support.

8. Higher Liquidity: Stocks can be easily converted into cash whenever you want. It is also easier to find buyers for your stocks than other investments like property. Stocks have such high liquidity that they are known as liquid assets.

9. SEBI Protection: The SEBI regulates the stock market hence when anyone invests in stocks, their money is protected by the SEBI. Online investing in stocks is a safer alternative to real estate investments as it is not as regulated. Property investments are also more susceptible to fraud.

10. Possibility of Dividends: Many investors are paid dividends by the companies they invest in. A dividend is a reward given by a company to its shareholders. This reward is in addition to the returns you would otherwise get on your investment.

Do not forget, a penny saved is a penny earned! Happy Investing!