By: Hem - 08-Mar-2022

7 Reasons Why You Should Invest In stock trading

Indians are three percent less likely to invest in the stock market and trading than other nations because of the risks involved. Often investing in India’s best online stock broker seems a practical way to make assets, diversify your portfolio, and earn money. Yet, the risks of losing make it seem like a gamble. Lack of market knowledge lets people see trading as a harmful practice. It has made people reluctant towards investing in the trading market, especially without a safety catch. This article tries to debunk these myths related to trading and offers some insight into the pros of investing in the stock market. 

It helps keep pace with inflation.

Inflation can be defined as the state of soaring prices of consumer goods compared to the falling purchasing power of money. It usually occurs when the economy has an increased money supply, but income and wage levels remain constant. All goods, consumers, and services go through inflation year by year on regular days. It is also reflected in the interest rates offered by banks on your trading and savings accounts. It might negatively affect your earnings from trading online and investment in the stock market. 

But the stock market is the best place to invest intelligently and earn high returns on investments in the stock markets. Usually, investing in stocks from good companies can help you make interest from trading at around 12-18% P.A or more. The more time you invest in the stock, the higher will be the returns, keeping in terms with rising price levels relative to your investment costs in the previous period. Hence it is a great way to keep up with rising inflation by investing in online trading markets.

Potential for capital growth

Stock market and real estate are two fields of investments that have beaten all other potential money-making areas in the country. The stock market provides an excellent way to outperform investments in gold, platinum, fixed deposits, bonds or commodities with some of the highest returns possible. Thus, the stock market has tremendous growth potential. It is always advisable for business-oriented people who want to earn more from monetary investments.

Start small, end up big.

The most attractive feature of the stock market is that you can always invest small amounts on shares, speculate and hold on to them till they soar in prices and then end up with big payoffs. Money is quite an essential feature for anyone to afford the luxuries in the world. Be it buying any fancy item or necessities to sustain a living; there is nothing money cannot get you. So if you invest your money in good companies, even if it’s for minimal shares, your money grows over time and will undoubtedly give you high returns. So, this is how one can make his money work for him instead of the other way round, where you have to work for money. Also, every little push adds up to something big, and in this case, the tiny impulses are your timely investment in company shares that will help you reap the rewards. 

Better late than never

Investing in stocks has never been more beneficial. And it is also easier. While investing in the trading market, choosing an online brokerage company of repute is always advisable. They will help you regulate your intraday dealings and buy and sell stocks from the comfort of your home. Also, with the increasing usage of financial apps and websites, it is easier and more workable to analyze and assess your income via stocks and the market adjoining. Hence you can always stay up-to-date on the market swings and make informed, speculative decisions on which stocks to invest in and when.

Tax benefits from the government on trading

The government offers tax exemptions and benefits on your virtual trading assets and the returns earned. The tax rate on long-term capital gain is 10% of your profits exceeding 1lakh. Again, the rate is 6.5% taxable on fixed deposits up to 10-30% depending on which tax slab you belong to. 

Alternate source of income

Trading online or participating in the stock market is a viable source of income for most people, employed or otherwise. For ordinary people, investment in the stock markets becomes an alternative source of revenue if you get laid off from work, or your company shuts down. You can increase your returns from assets through-

• Value appreciation and dividends
• Equities and shares
• Buying cheap and selling at higher costs
• Holding onto shares till the market returns on the upswing 

 Hence people need to start investing in stocks.

Compounding through long term investment

One significant benefit of investing in the stock market is that it gives you the advantage of growing your stocks and wealth exponentially. Most banks offer simple interest rates on your savings account, fixed deposit accounts, or even bonds. But the stock market is different. They offer compound interest rates on your shares or profit off shares over an extended period. The power of compounded returns is perhaps one of the better reasons people invest in the stock market.

Hem Securities is the best online stock broker in India.

They offer top-notch services in trading and maintain a professional yet dedicated relationship with each client. Their team of highly skilled experts provides deep insight into the market’s inner workings. Hence, help you forecast and analyze the market’s movements accordingly. The shares of the stock market always have to be regulated for you to make an informed decision on which company to invest in, which shares to sell off, and which ones’ prices might increase in the future. 

We hope this article helps find you the right reasons and ways to invest in the stock market and who to trust while investing in the stock market. So, now know the reasons why anyone should invest in the stock market and how it can offer significant returns on the same.