Why an investor should invest in stocks ??
To cope up with future uncertainties investment is must. A proper financial planning at present helps an individual to deal with its future financial requirements in a better way.
There are various modes through which investment can be made.Stock market is one of them and has great potential to offer you good returns. To assure your best returns from market also there are financial advisory services providers who offer stock tips and other stock market trading tips.
As we all are well aware of the fact that keeping our hard earned money in our pocket will not increase its value. To increase its value we have to invest in somewhere.And a wise way to increase your money is by investing it in stocks. Reasons for which and investor should invest in stocks are discussed below :
1. Stocks have offered most potential for growth :
Indian stocks have earned more then bonds in last years, despites of frequent ups and downs in the market. Volatility of market is one reason because of which investors fear to invest here, but they should also understand that though stock market is of highly volatile nature but it still exists from so long time which clearly indicates that it is having good potential of growth and also capable of generating good returns.
2. It is more convenient to deal with market ups and downs here:
When market is not under favorable condition it makes you feel nervous. For the time being you may feel so but remember it is never impossible to deal with market movements. You will definitely be able to ride it out.
Having a positive thinking helps you under such conditions. Losses are just on paper until you sell your stocks.If you think that you should now sell your stocks as they are earning you loss then remind yourself you did not made this investment to satisfy your present financial needs it is for your future.
Bottom line is market gives you enough opportunity and time to improve your returns. If you invest regularly when market is not under favorable condition you will be adding to your savings by buying stocks at lower price and further selling them at high price when market regains its strength.
3. Not your entire money is required to be invested:
Investment should always be made as per your risk tolerance capability and financial goals. Investors looking for long time horizon should go for stocks. Even with less capital investment in stocks can be made and it is not required that entire your earnings are to be invested a part of it is to be.For better management of risk you can keep a well diversified portfolio comprising of stocks of different industries.
To manage your future financial goals a wise financial planning is must. Investors must make investment in a diversified form by having a required exposure to stocks which will help you fulfill your financial goals. Never panic under adverse market conditions . You are saving your money by buying it at low price and further selling it at higher price.
To gain best returns you can take help from market experts and use their suggested stock market trading tipss. Stock market has good potential to grow your money. You need to have patience with it . Risk and returns are directly correlated in stock market.Traders with high risk bearing capability have more potential to earn high returns here.