Sharekhan Blog

Why Should You Buy Equity Shares?

  • Jun 30, 2024

Many people want to increase their wealth and make investments to help them achieve their long-term goals in life. However, the majority of traditional investing options provide meagre returns that, in some circumstances, do not even outpace inflation. As a result, those who are afraid of taking risks have few options for amassing a sizeable corpus for the future.

The equity share market offers a different way to get high returns on investments in this situation. while additionally taking part in the tale of the nation's economic prosperity. These investments, nevertheless, come with market dangers, so you'll also need to do more in-depth reading and research.

Important justifications for equity market investments

If you're wondering why you should invest in the Indian stock market. The following main arguments ought to answer your questions.

Tempting Returns

You could get good returns on your stock market investments. That easily outperformed the nation's inflation rates. The profits could be on the higher side, and other investment channels might make this otherwise impractical.

Investing over the long term

If you were unsure of why you ought to invest right away? It's because investing over a longer period allows you to build up more wealth for the future. Stocks can be kept for a longer time. to profit from the rise in their worth and favourable market conditions.

Income

By making frequent investments in the stock market, you may consistently generate a reliable income. This is made feasible by employing comparable techniques, such as selling stocks at a profit after purchasing them cheaply.

No lock-in times

For investments made in the stock market, there are no lock-in periods. a feature that practically all other investing channels have. Stocks can be held for as long as you like and sell whenever you desire.

Dividend Income

Several businesses periodically distribute dividends to shareholders. When these businesses make big profits and want to share them, they do this. These dividends might serve as a reliable source of income for you.

Merger Advantages

Stock prices increase significantly if two firms merge or when one company acquires another. This offers investors a distinctive opportunity to profit from stock trading. Future profits may come from making investments in businesses that are merging with other organizations.

Bonus or extra shares

whenever businesses want to grow or increase their revenue they frequently provide current owners or investors bonus shares. When compared to similar product market values, these are offered at substantially reduced pricing.

Decision-Making at Will

Regarding the investments you will make, you may decide for yourself. Where they will be created, how long they will last, etc.

Simple Entry

With little money, you may start trading in the stock market with ease. and begin generating respectable profits as well. There are no minimum or maximum investment requirements, and you may start making money with a lesser starting corpus as well.

Transparency

Greater transparency is a given when making stock market investments. The market and brokers are governed by several regulatory organizations, notably SEBI (Securities and Exchange Board of India). Additionally, you may get all the relevant information online.

The ability to participate in the nation's economic development and growth is one of the major intangible advantages of stock investing. You have the opportunity to participate in the consistent market momentum as an investment. Along with the potentially alluring gains, this is one of the major highs of the market investment. that if you play your cards well, you stand to benefit.

As a final word

No investing plan becomes flawless overnight. Additionally, it will take more time for you to develop your viewpoint, plan, and forecasting skills. In terms of selecting the appropriate stocks to purchase and sell, picking out likely winners, weeding out likely losers, and so on. Spending more time learning and gaining experience is usually beneficial when you start trading stocks.

Have a long-term perspective while investing in the stock market but give yourself some leeway to make a few errors. Keep in mind that setbacks are usually transient, and you can always recover with patience and tenacity. The stock market investors who have maintained their growth plans have had the greatest success. notwithstanding tough times, failures, losses, market gyrations, and other obstacles.



These articles have been prepared by Sharekhan and is not for any type of circulation. Any reproduction, review, retransmission, or any other use is prohibited. Sharekhan shall not be responsible for any unauthorized circulation, reproduction or distribution of this material or contents thereof to any unintended recipient. Kindly note that this page of blog articles does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The value of the investments may be affected generally by factors affecting financial markets, such as price and volume, volatility in interest rates, currency exchange rates, changes in regulatory and administrative policies of the Government or any other appropriate authority (including tax laws), or other political and economic developments. Please note that past performance of financial products and instruments does not necessarily indicate the prospects and performance thereof. The investors are not being offered any guaranteed or assured returns. The securities quoted are exemplary and are not recommendatory. While we would endeavour to update the information herein on a reasonable and timely basis, Sharekhan, its subsidiaries and associated companies, their directors and employees are under no obligation to update or keep the information current. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of use of the trading platforms mentioned herein. The trading avenues discussed, or views expressed herein may or may not be suitable for all investors. This information is only for consumption by the client, and such material should not be redistributed.


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by Team Sharekhan

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