It is uncertain to predict the future of the stock market but, the uncertainties couldn’t restrict the profit earning capacity of stock markets. If you could use the information right, stock investment is considered as one of the most viable options to invest your saving and make sufficient earnings out of it.
Is investing in stocks is a viable option?
There are various benefits associated with investing your money into the stock market.
Stocks are easy to buy and sell. There are plenty of options available to buy stocks. You can easily purchase stock through a financial institution, broker, or online. Stocks are considered liquid holding, which means you can easily convert your holdings into cash whenever you wish to.
The stock market keeps its working mechanism transparent that allows the purchaser of the stock to monitor effortlessly.
Investing in the stock market will provide you the option of growth if your countries’ economy is blooming so does your earning on your stocks. An increase in your company economy will create more employment opportunities that generate more income that generate more sales.
Investing in the stock market provides a safeguard against inflation. One needs to keep checking for the update and ensuring that the rate of return on your investment is higher than the rate of inflation.
Demerits of investing in the stock market
The stock market is volatile and dynamic in nature. The prices of the shares keep changing, many a time the prices of shares drop multiple times a day and as a result, you will end up losing your investment.
To protect yourself from such uncertainty you should understand the financial position of the company, its area of weakness, and then you should decide on investing in the company.
To be on the safer side, prepare yourself mentally before taking any step further.
High Broker fee
All the transactions take place with the help of a broker. If you want to buy a stock and if you want to sell your stocks you will require a broker to do this job. Brokers charge a certain amount of fees for purchasing and selling stocks. Some brokers charge exceptionally high prices for their services and exploit their customers.
Wastage of time
To reduce the chances of risks involved, the investors gather as much information as they can to understand deeply about the company management, financial, and fundamental policies however this process requires a lot of time which most of the investors don’t find preferable.
There is a mentality between some of the investors that the stock market is nothing but a game of gamble, but this is totally absurd and untrue. Investors simply think that could try their luck and end up earning a decent profit on the shares without any sweat, but this perception is false. Investors will require a great amount of knowledge and information to safeguard themselves from uncertain losses.
Despite the shortcomings, the stock market remains one of the most reliable options to invest your funds. Even in this difficult time when our economy has been badly affected by COVID-19 investing in the stock market will help to revive our economy.
You can consider investing your funds in Cipla limited, Dr. Reddys, Thyrocare, and other pharmaceuticals companies as they will rise during Covid