Why Should You Think Of Stock Market Investing ?
Saving and investing are the two aspects
which are necessary to fulfill one’s financial goals. The dream of buying a car
or home cannot be fulfilled with your savings alone due to high inflation rates
and lower returns. Share market offers the opportunity to get risk adjusted
returns both on a long term and a short term basis. As the risk profile varies
from person to person, the type of financial products for the purpose of
investment also varies. A long term investor can choose assets like mutual fund
or can invest in equities for a longer time whereas a short term investor can
trade in shares. Share market offers a wide range of options suitable for all
kinds of investors who may be conservative or aggressive in terms of taking
risks.
As an investor, one should take proper care
before buying a share. You should analyze a company both technically and
fundamentally to know its past price movements and its financial performance. One
should start investing in share market from
an early stage in life that would give enough time for his/her money to grow. As
you start at a young age, the responsibilities are less and hence you can
allocate more money for the purpose of investment. We should not be lazy and
avoid postponing when it comes to investing as financial discipline is very
important to get better returns. You can either be a lump sum investor wherein
you can invest your money at one go or you can invest regularly depending on
your income, objective, age, dependencies, etc.
You should also check your portfolio always
so as to know which stocks to be added and which to be removed from it based on
their performances. It’s our responsibility to start investing for retirement
and our future health care expenses too. As most of us work in private
companies and we are not covered by any Pension plans, it therefore becomes
very crucial to start allocating funds for our secured future right from an
early stage of our career.
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