Mr. Prabhakar Tiwari, Chief Growth Officer, Angel One Ltd
The festive spirit is just setting in. While bringing joy and celebration, the festive season marks an auspicious occasion for new beginnings. As the starting of a new financial year in the Hindu calendar, it is believed that investments made during this time would yield profitable results. Other than buying gold and other precious metals, people also invest in stocks. Every year, on Diwali, the stock exchanges open for a one-hour session, popularly known as the Muhurat, beyond the usual market hours. If you are new to investments, this is the perfect “Muhurat” to kickstart your financial journey, not just by trading, but through investing on the Auspicious Day.
The investment broking apps and websites on this day make stepping into the capital market simple. The emerging Fintech platforms have, further, made the process hassle-free for the tech-savvy millennials and GenZ. All you need is a smartphone and an internet connection to open your Demat account and start investing in the stock market.
Let’s take a look at some of the significant benefits of investing in the stock market:
Potential long-term returns
Investing in the stock market holds great potential of delivering considerable returns. Compared to other asset classes like bonds and fixed deposits, stocks generate higher post-tax investment gains over a longer period. If your entry point is favorable, the returns can be even greater in a shorter span of time. More importantly, stocks have a proven track record of delivering significantly higher nominal returns above inflation vs. other asset classes. Besides this, most companies pay a dividend amount to the investors every year. Think of it as an additional gain that you can have while investing in stocks.
One of the most important aspects of investing in the stock market is the high level of liquidity. As opposed to other means of investments, stocks can be easily converted to cash anytime. In India, two major stock exchanges – National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) – deal with high-volume trade daily. It facilitates high liquidity in the stock market. As a result, the new-age investors can buy and sell stocks knowing that they can cash them whenever they want, at the mere click of a button.
Flexibility of making investments
Stock markets provide a wide range of investment options for investors like systematic investment plans in stocks. It is helpful, especially for those starting their investment journey in the capital market. Most beginners look for smaller investments keeping in mind the risk factors. This is where stock markets provide flexibility. If you are looking to invest, your stockbroker can help you simply select the stocks as per your budget and preference, using advanced technology such as Artificial Intelligence and Machine Learning. Besides this, making investments in the stock market is not a time-bound commitment. You can do it at your own pace and convenience, buying at dips and selling when its high.
Gain from a flourishing economy
By investing in the stock market, you can directly reap the benefits of a booming economy as the revenue generated by the companies increases multi-fold. It further increases the value of the companies, thereby improving their share prices. As a result, the value of your investments in the stock market will also increase.
Investing in the stock market offers secure and transparent processes while bringing long-term yields. More importantly it is valuable tool to use to beat inflation when it comes to goal planning. The emerging tech-enabled platforms have made exploring investment opportunities, trading and investing, and keeping track of the capital market trends easier, even for beginners. It’s never too late to start investing. This year the stock exchanges would be celebrating Muhurat between 6:15 pm and 7:15 pm on November 4. So, gear up and add a little spark to your financial growth this festive season by beginning your investment journey. Buy and gift shares to your loved ones as a Shagun, this Diwali!
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