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Stock Market

Who can invest in stock market?

Posted by nifm

Before going in to start about “Who can invest in the stock market?”. You should know why we have to invest in the stock market! Why do we need to invest in the market?

The reason behind the investment is that nobody knows the future of their life. They wanted to secure their family after his/her death. One more reason behind the investment, if you keep your savings idle, its nominal value remains the same, but its real value decreases due to prevailing inflation. So instead of keeping the savings money idle, you must invest it somewhere to get a return on your capital in the future for you or your family.

How much you are earning is not important. After spending whatever amount you saved after expenses, you have to invest somewhere to get a good return on that money. You just need to invest smartly. Otherwise, you can go through this comprehensive guide on Smart Investing to know the actual flow.

In the share market, anybody can invest. If you are earning, you can invest like a businessman, a service man, a housewife, a retired person, an exporter-importer, and a hedger; anyone can invest. You can invest your saved money in these instruments:

ü  Insurance

ü  Stocks

ü  Bonds

ü  Post Office Investments

ü  Mutual Funds

ü  Gold, Silver

ü  Bank Deposits

ü  Real Estate

The stock or commodity market is made for hedging purposes, but people are quite interested in speculation because they are getting a good return on it. Traders try to buy stock at the bottom levels and sell the stock or commodities at a higher price. Due to high liquidity in the market, buyers and sellers can square off their positions at any time. If you know technical analysis or fundamental analysis, you will get a good return. It is not so easy, but not impossible. So, learn before investing in any instrument for maximum return on a small amount. Join NIFM, www.nifm.in, to get structured knowledge about a range of courses.

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