The awareness of the Indian stock market has increased exponentially in the last few years. Fintech and online trading platforms have played a critical role in not only making the stock market accessible, but also educating the common man on the workings and dynamics of the Indian stock market. The financial markets have been responsible for making billionaires out of its investors, even when the global economy took a turn for the worse during the pandemic. The enhancement of personal wealth for those individuals wasn’t just an outcome of investments in the stock market, but it was the result of a strategic and timely investment in certain stocks and industries that ultimately yielded high earnings for investors.
Is it safe to invest in Stock Markets in India? Yes, it is. Investing in the stock market in the long term can give investors better returns compared to other financial products such as fixed deposits, provident funds, and other fixed-income instruments. The stock market is subject to volatility and market forces in the way that certain fixed income instruments are not. But it is this volatility that also fosters greater growth of your investments and yields a higher return on investments.
Here are some features of investing in Indian stocks that make it a secure and reliable avenue for your savings:
Liquidity
Traditionally, real estate was believed to be a bastion of your hard-earned savings. Capital appreciation of property value was a guarantee and considered secure investment due to the physical nature of the asset as well. Today, any financial advisor will tell you that real estate as an investment avenue is fast losing its prominence. Not only is the real estate sector slowing down, but it is also not liquid enough to meet the needs of the modern investor. The stock market by comparison offers greater liquidity and flexibility to its investors. Liquidating stocks is far easier than liquidating any other physical asset you may own. If you are unhappy with the way your stocks, mutual funds or bonds are performing, you can cash out and park the money somewhere else. What’s more, all of this can be done entirely online.
Grow with the Economy
Investing in the stock market gives you the opportunity to grow with the companies and industries you invest in without ever having to participate in the operations of these companies. The understanding of a certain company or industry may come from anywhere – you could be a professional in a certain industry, you believe in the product or service a particular organisation is building its profits on, or you feel optimistic about the expansion plans of industry leaders who have been in the business a long time. The data and deep knowledge you may have on certain corporations can be leveraged to make strategic and well-timed equity investments in such institutions. The element of risk may not be entirely removed, however with proper research and analysis, you can give your money the chance to grow with some of the most lucrative businesses in the world.
Speak to Experts
There is no dearth of people or platforms in India that will guide and assist you in making investments in the financial markets. From stockbrokers to demat and trading platforms to personal wealth managers and blogs and websites – there is someone or something for every kind of investor. No matter how small your investment size and your choice of financial instrument, building a portfolio in the stock market has never been easier.
Variety of Instruments
The stock market welcomes investors of genders, ages and investment sizes. Going digital has democratised the capital markets to a large extent, making it possible for anyone and everyone to get on board and invest. Some of the best platforms for trading in India are available online. You can invest as little as INR 100 in equity today. There are mutual funds for people who want to play it safe, debt and liquid funds for those who want better alternatives to traditional savings accounts, commodities, F&O trading and arbitrage for the stock market savvy investor and the option to own a piece of some of the best companies in the world. No matter what category of investor you fall into, you can invest in the stock market starting today.
Online Trading Platforms
Online trading platforms allow their users/investors to learn, explore and interact with the stock market throughout the day. Some of the best platforms for trading in India are now mobile applications using which you can buy, sell, watchlist and track the stock market at your convenience. Stock market investment platforms like Dhanush provide a safe, secure and supportive digital environment for their users to engage with the stock market.
Investing in the stock market is a long game. For new retail investors, research, consulting experts in the field and taking time to understand the different financial instruments and linking them with financial goals should be a priority before investing. Once there is a proper understanding of how the financial markets work, there is much to be gained from investing in them.