Benefits of Investing in Stocks

benefits of investing in stocks

Increase funding

If you have invested in stocks, your capital will increases with the increase in prices of stocks. Additionally you will get annual profits of the company as in form of dividend. It is right to return the stock Market with the highest risk option, but most are here!

But if you are investing in stocks without full knowledge of a market, then you are putting yourself fire. Yet you can make a good money by understanding the stock market and analyzing it.

Dividend income

If you hold a stock for a long time then you can get a dividend income too! Some companies distributes part of their profit as a dividend Take for example, if you hold 100 a share of XYZ Company having face value of Rs. 10 and company declare 20% dividend i.e. Rs. 2 then you will get Rs. 200 in a form of dividend.

Safe money is invested in stocks

Many people do not invest in the stock market because they think the money is not safe here! But this assumption is wrong! Here your capital is protected as much as the rest of investment! Just for that you have to follow some rules!

Investing in stocks is from the variety

Shares in the benefit of diversity! You should invest your capital in 3 to 4 sectors to minimize risk and increase profit. For example, if you have divided your total capital in power, infrastructure, pharma, chemicals, capital goods, textiles your loss will compensate.