5 reasons why stock market is the best Investment ever.

When it comes to investing I know many of you have this question in your mind.....Is the stock market is the best investment option rather than gold and real estate.....Don't you have??? Don't lie to me I know that's why you are here...just leave that and go further. Many of us use to ask our parents that if we can plant a tree which will grow big and one day will give us money instead of fruits. I know you also have asked this question to your parents in childhood at least once. So what if I tell you that yes there is an option in which if we plant a tree and watering it for the years the plant will give you money instead of fruits. Yeah, the no. of fruits will depend on you that how well you take care of the tree and watering it. Yes, you guess right am talking about the stocks if you will analyze the stock on every parameter well it will be proved as a money plant for you. Let's take an example of Titan company, in Jan 2000 the price of a titan share was around 7 rs and today it is trading at around 1100 Rs. Now calculate if you had invested 10,000 rs. in 2000 when it was trading at 7 Rs. what will be the current value of your stocks?? If we do not calculate the bonuses and dividends still it would be around 16 lac Rs. I know you won't believe it but you can check on google by yourself? So today's topic is why the stock market is the best investment?

5 reasons why the stock market is the best investment.

1. Easy and Convenient 

Investing in stocks is far easy and convenient than investing in gold and real estate. If you decide to invest in real estate then you need to give too much time to find a cheap property and it also required lots of paperwork to own a property. Also at the selling time, you will need to spend time to find the buyers which also takes too much time. whereas in the stock market everything you need is just a Demat account and you can invest in a stock just with a single click and hold it for the long term or forever. 

2. No maintenance or making charges

When you buy gold you need to pay very much making charges but yeah it's quite good if you want to enjoy the gold as jewelry as well but if you buying gold for investment purposes only then it will not be a good option for you. On the other hand, if you invest in real estate you have to bear some maintenance charges, repairing charges if you want to sell your property at a good price also it takes too much time. Whereas in stocks once you bought stock then there are no maintenance charges, repairing charges, or making charges required only a DP charge and brokerage will be applied which is too little. Even some stockbrokers are present in the market who doesn't charge any brokerage on buying in delivery.

3. Have the potential to generate high returns

Where in another investing instrument you just get enough returns to beat inflation on the other hand you can get the maximum returns in the stock market. If you make a fixed deposit, the returns will you get around 6-7% annum. If you invest in gold, the returns you will get around 10-12% also the returns profile in real estate is the same as the gold yeah it can be slightly higher. But in the stock market, it all depends on you that how many returns can you able to generate. In the whole life, Warren Buffet has generated a return at the rate of 21% CAGR in a well-developed country where the growth has been stable for many decades. On the other hand, there is much growth been left in India and the growth rate of India is also very fast than developed countries. So there is more opportunity in India if you will analyze the stock well, it's not bad to expect 20% per annum, and with dividend reinvested you can make a big wealth for you in long term.

4. It can be a passive income source

If you invest in gold or make a fixed deposit then you can only earn capital gains. But if you invest in those stocks which give you regular dividend you can grab that dividend as well as you can earn through capital gain. Yeah if you invest in real estate it also gives a passive income by giving your property on rent but you will need to repair it first then it would be ready for rent. So, the stock market can be a great passive income source.

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5. You can start  from as less as you have 

Investing in real estate or gold requires too much capital to own it. If you want to invest in real estate you need lacs of rupees and if you want to invest in gold you need thousands of rupees. On the other hand, there are many stocks that are available at very low prices even if you save the money by cutting out expenses like cigars, biscuits, or anything, you can buy many stocks in a month from those savings. Let me give you some examples. the federal bank stock price is around 50 rs., the price of Ashok Leyland stock is around 60 rs. so just imagine you can buy even a single stock of that company. These two companies are just an example there are many good stocks available in the stock market whose price is below 100 rs.  100 rs. is not a big deal for anyone whether he is a student or a fresher. 

Read here: How to invest money?

conclusion

Clearly, the stock market is the best place of investment if you want to create huge wealth for you in the future but it is also true that if it has the potential to generate huge returns then it is too risky also but you if you analyze the stock well you can minimize the risk.