Why investment in the stock market is more important nowadays?

In the past few years, the stock market topic has been in a boom. Earlier people were afraid of the stock market so they were just investing their money in FDs or simply keeping the cash idle in a savings account to earn interest.

But do you think it is enough? Yes, you're guessing it right the answer is NO. As I mentioned the most common investment people do is in FDs or some with good money simply invest in properties.

Apart from these, there is an end number of options which people see but don't show much interest. The options are investments in shares, mutual funds or simply the stock market.

There are many reasons but below are the few key points which I feel why investment in the stock market is important:

• Money in a bank account- Keeping your money in a savings account is no more a good option because the interest rate is very less and with the rising inflation that interest is of no use. It's better to invest in the stock market because on average you can get 12–15% returns in a year (Only If you invest in good companies).

• Improves the country's economy- Investing in the stock market helps the country's economy to grow. In India, only 1–2% of the population invest in the stock market while in the US it is around 55%.

Nowadays many people are showing interest in cryptocurrency which they have no idea about but I suggest investing in the stock market and also with this, you're indirectly investing for upcoming India :)

• Internet Era- Earlier the exposure to the stock market was less but with this internet and YouTube many people have exposure to the stock market. There are a lot of educational videos about the stock market which you can watch and learn to start your stock market journey.

• Large corpus fund- If you're investing in good companies with a long-term view then you will have a large corpus fund for your retirement or future due to the compounding effect. So the best time to invest is NOW.

• Stock market wins inflation- Only the stock market has the potential to win inflation. Keeping your cash in a savings account or FD might be a safe way but with this, you're only the one who will have to face inflation.

For example, today the price of the product is Rs 100 but in future, the same product will be Rs 110, considering a 5% interest on your saving account taking an instance of Rs 100 still you will have Rs 105 but the same If you invest in the stock market then on an average you get 12% return so you will have Rs 112 in this way the inflation loses in front of stock market returns.

See y'all in the next blog, Cheers!