Benefits of investing in stock market

Benefits of investing in stock market

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Created By Admin Last Updated Tue, 24-Nov-2020

The stock market is a platform where you can create your own pipeline for lifetime passive income. Investment in the share market is becoming a very attractive source of investment these days is the source of income that can lead you to a higher level of financial freedom after a certain period of time. The share investment is not like a Bank FD which assures a fixed return but there are always ups and downs in the market and a deep study of the market and a good awareness of market trends are the key to successful prediction of success.

There are many advantages as well as disadvantages of investing in the share market, but we must always remember that in your whole life you can’t find the situation which has only one phase because everything consists of two phases either some percent positive or can be some of negative. It is a business and the rules of this business must be carefully followed for a safe and secure trading.

Advantages: -

·         Opportunity to get more returns on investment comparing with Bank FD or RD, Mutual Fund, Postal Saving, etc.

·         Investment is not blocked for a specific time limit. If the market value of your shares increased you sell it within a short period (Bank FD can be withdrawn only after maturity otherwise interest is deducted.)

·         Liquidity- The volume of transactions in Share market is very high.

·         If you have a deep study of market trends and have good confidence you can earn a good amount than your investment while the market is growing as well as it is sleeping.

·         You own your own business with literally do nothing.

·         Unlike other businesses, you need a team. But here, you can work by your own self without any particular workplace mean you can do this from anywhere.


You can get the following benefits of investing in Share market:

Investment Gains

One of the primary benefits of investing in the stock market is the chance to grow your money. Over time, the stock market tends to rise in value, though the prices of individual stocks rise and fall daily on the basis of the stock market. Investments in stable companies that are able to grow to tend to make profits for investors. Likewise, investing in many different stocks will help build your wealth by leveraging growth in different sectors of the economy, resulting in a profit even if some of your individual stocks lose value.

Dividend Income

Some stocks provide income in the form of a dividend. While not all stocks offer dividends, those that do deliver annual payments to investors. These payments arrive even if the stock has lost value and represent income on top of any profits that come from eventually selling the stock. Dividend income can help fund a retirement or pay for even more investing as you grow your investment portfolio over time.


For investors who put money into different types of investment products, a stock market investment has the benefit of providing diversification. Stock market investments change value independently of other types of investments, such as bonds and real estate. Holding stock can help you weather losses to other investment products. The stock also adds risk to a portfolio, as well as the potential for large, rapid gains, helping investors avoid risk-averse or overly conservative investment strategies.


Buying shares of stock means taking on an ownership stake in the company you purchase stock in. This means that investing in the stock market also brings benefits that are part of being one of the business's owners. Shareholders vote on corporate board members and certain business decisions. They also receive annual reports to learn more about the company. Owning stock in the company you work for can be a way to express loyalty and tie your personal finances to the success of the business as a whole.

Disadvantages: -

·         Risk Factor is a major disadvantage because there are many factors that affects the market.

·         It is not easy to control your emotion.

·         Many times, the newcomers and also the experienced traders depend upon the Tips which may cause to lose.


Keeping in mind all these merits as well as demerits one should enter into the market with deep study and strong confidence. A long-term investor who invests carefully always gains success in the market.