Stocks can prove to be a valuable part of your investment portfolio. Acquiring and owning stocks in various companies can let you create your savings, safeguard your money from taxes and inflation, and maximize wealth from your investment basket.
To invest in share market means to invest in a company. This is so because shares get investors a sense of ownership stake in the company. Shareholders play a crucial role in impacting a company’s decisions. Various historical incidents recommend how shareholders might have stopped many company managers from executing decisions or policies that hamper their interests.
Stated below are a few benefits of why trading in stock markets through an investment tracker app can be a valuable method of generating wealth from your investment:
Smooth Trading Process:
Share market trading is no longer a complicated task, with various online trading platforms available in the form of websites and applications providing trading facilities to investors. Investors can now effortlessly trade with their full-time jobs as trading or investing in share markets has become quick and hassle-free.
Generate Regular Income Through Dividends:
Few companies might distribute their income to shareholders in the form of a dividend. This serves as an extra income source for investors, particularly when a share has recently observed a drop in its value. Dividend income is in addition to any profits generated by selling the stock. It facilitates increased liquidity in the investors’ hands, or investors can also use the sum to make extra investments to grow their investment basket ahead.
Hedging Against Inflation:
The primary purpose of any investment is to keep the investor’s future financially secure. A vital element that can affect this probability is that inflation can increase from time to time. If inflation increases steadily as the rate of return on a particular investment, then an investor’s profits will be nil. Hence, an investment’s return rate should generally be greater than the inflation rate.
Regulated And Transparent Structure:
The Indian share markets are regulated under the supervision of the Stock Exchange Board Of India (SEBI). SEBI also supervises the development of the markets and even safeguards investor rights. Therefore, when traders or investors invest in the share markets, they get an assurance of a suitable regulatory framework that diminishes the overall risks of any potential fraudulent activities that companies might be tempted to indulge in.
Flexibility:
Investing in the stock market via an investment app lets you commence with small investments and eventually build a portfolio over time. Investing in small or medium-sized companies can be a good way to begin since such companies have a greater scope for growth and can offer the potential for higher profits. Also, you can choose the stocks of your own choice instead of going through mutual funds or other investment options.
Investing in the stock markets can be a good way to increase your short- and long-term wealth. Therefore, you must conduct a detailed analysis via a market analysis app and make well-informed investing decisions. Additionally, it is a good idea to consult a financial advisor before making significant investment decisions.
