Top 7 reasons to invest in markets!

Did you know! Most Indians never invested in the stock market in their lives. What’s more, some of them say that they don’t invest and they wouldn’t even know where to start!

Of course, investing can seem complicated at the start. But here are quick investing basics that can get help you get a headstart on your journey!’

So what’s an investment and how does it work?

An investment is an asset that is created with the intention of allowing money to grow. This can be in the form of capital appreciation, capital protection, regular cash flow or a combination of them.

In fact, want to know what one of the best examples of capital appreciation is? You’re right! It’s Equities!! If steady cash flow is what you’re targeting instead, bonds can be your go-to investment! In case, both a steady income and capital appreciation are what’s on your mind, you can simply choose real estate.

Importance of Investment 

If you wish to fund your international holiday with besties, buy your first home or retire early, then you must plan your investing goals.  The earlier you start investing, the more wealth you can build because interest keeps getting compounded over time. This adds more potential savings to your kitty.  You might even achieve your financial goals quicker. Thankfully, this stands true whether you’re an individual, a part of a corporate or a government institution.

Curious what the most attractive benefits of investing are? Check them out below!

Beat Inflation: Stop the inflation monster from eating into the purchasing power of your money. Just invest your surplus cash to combat inflation and maintaining the lifestyle you have grown used to.

Extra income: Depending on a single source of income can cause huge pressure on a loved one. Lighten the burden on their shoulders by building a passive source of income. Selecting debt funds, equities, or real estate can earn you additional income.

Financial Cushion to lean on: Retire early to start your second career innings or build enough savings to only to tackle unexpected emergencies. Get the confidence to live life on your terms with a
financial cushion.

Higher tax savings: Slash tax on your hard-earned salary by investing in mutual funds, insurance, PPF, or tax-saving bonds. The Income Tax Act 1961 allows several deductions when you invest in
these avenues.

Objectives of Investment: Your investment objectives are linked to what you wish to accomplish using your investment portfolios. Mostly these objectives are connected to risk and return i.e. the risk that you are willing to take usually determines your returns.

For example, if a pensioner invests his savings, he’ll expect safety and income. Whereas, a single entrepreneur with decent income and few financial responsibilities would possibly seek aggressive investment growth. 

Now, view a quick snapshot of more reasons to invest!  

Safety: While looking for safety, go for investments that come with low or reduced risk. The returns however are low and may not keep up with inflation. E.g., government bonds, bank securities, or money market instruments.

Instant liquidity: Investors are biased towards investing in securities as they are easier to liquidate especially during emergencies. It’s a smart decision to keep a part of your investments in the form of readily marketable securities.

Higher risk, greater returns: If your topmost priority is investment growth, then you’re likely to pick investments in growth instruments. Although you can see ups and downs, higher risk investments can provide greater long-term rewards. E.g. Investing in stocks of publicly traded companies. You can make your money work almost as hard as you do instead of delaying your investment. Wait no more. Move ahead towards your goals today.

You can get a greater amount of money tomorrow! Give a shot to quick and transparent investing via stocks, commodities, and modern alternative investments. Take charge of your investing now.