• Posted on November 26, 2018 by Admin

    Advantages of Investing in the Stock Market

    The key objective of investing is to ensure that each and every person is able to meet their future financial objectives. Hero Fincorp shares come under the parent company Hero MotoCorp limited, and this is India’s fastest growing NBFCs which disburses more than 1.2 loan amount per minute, which translates into one two-wheeler being financed for one every minute. The rise in inflation makes it inadequate for people to simply earn and save some part of their incomes as well. To meet the price rise due to inflation, investments become very important, and investing in Hero Fincorp Pre IPO can be that investment, as they are extremely strong with their relationships, with over 2000 high growth companies.

    Despite the popularity of the stock market, this is just one of the many potential places where one can invest their money. Often risky, if one still invests in stock, it might draw attention to the huge gains and losses of some other investors as well. If one manages their risk, then they can take full advantage of the stock market which secures their financial position and earns money as well.

    Due to the several benefits of investing in stocks, the stock market is one of the oldest and very popular ways of having investment avenues.

    1. HIGH LIQUIDITY

    In the Indian stock market, there are two exchanges which play a very pivotal role, those are as follows;

    • The Bombay Stock Exchange
    • The National Stock Exchange

    They provide higher liquidity to investors as the average daily volumes are high, therefore if one investor wants to buy or sell any product on the stock exchange then this liquidity makes it easy for them.

    2. VERSATILITY

    The stock market offers one different financial instruments, some of them are as follows;
    • Shares
    • Bonds
    • Mutual funds
    • Derivatives

    It provides investors with a wide choice of products in which they can invest their money. In addition to the provision of investment choices, one also gets the flexibility which is beneficial in mitigating the risks which are inherent to the stock invested by enabling diversification of investment portfolios.

    3. IN SHORTER PERIODS OF TIME ONE CAN GET HIGHER RETURNS

    If one compares the stock market to other investment products like bonds and fixed deposits then stock investing provides investors with an excellent possibility of making greater returns in a comparatively shorter span of time. If one adheres to the stock market basics like planning the trade, using a stop-loss and take-profit triggers, doing the research and with due diligence, and by being patient one can significantly mitigate the risks which are inherent to the stock investing and also maximizing the returns on one’s share of market investments.

    4. ACQUIRING OWNERSHIP AND VOTING RIGHTS

    One acquires a portion of ownership in the company even if they acquire only a single share in a company. This ownership offers the right to vote and also offer their contribution to the strategic movement of the business. This might seem like an exaggeration but it is true and there are many instances when shareholders have prevented the company management from making decisions which are unreasonable and detrimental to people’s interests.



    5. REGULATORY FRAMEWORK AND ENVIRONMENT

    The Stock Exchange Board of India regulates the Indian stock market, and they have a responsibility of regulating the stock exchanges, their development, and also protecting the rights of the investors as well. This basically means that when one invests in the financial products on the stock market, then their interests are well-protected by a regulatory framework.



    6. VERY CONVENIENT

    Every aspect of modern living is influenced by technical development. To provide greater convenience to the investors, the stock exchanges use various technological advancements. The trading is very well executed on an electronic platform to ensure the best investment opportunities to investors in a fully open environment. As investors can place their orders through a computer from the comfort of their offices or homes, therefore brokering service providers offer online share trading facilities which makes one’s investing more convenient than ever. The demat account of investors makes it a lot easier for investors to hold all their products within their investment portfolio electronically in a single location, which makes it easier for one to track and monitor the performance as well.