“I need to make more money!”
If I ask why you want to start investing, your reply will be within those lines. I mean, that’s the primary objective of investing. But why stocks? The stock market is one of the oldest and most reliable forms of building a passive income.
Investing in the stock market can help you achieve your financial goals. In this post, I will show you the benefits of stock market investing, including potential high returns.
Reasons you Should Invest in Stocks
1. The Stock Market is Versatile
There are thousands of assets to pick from in the stock market. According to the World Bank, there are 4,266 companies listed in the US stock market as of 2019. On the Trove app, we have over 4,000 stocks including U.S. equities and exchange-traded funds (ETFs), American Depository Receipts (ADRs), and Nigerian Stocks listed on the Nigerian Stock Exchange (NSE).
Because of how versatile the stock market is, you can be flexible with your stock picks and also control risks through diversification.
2. Stocks are Easy to Buy
Another benefit of investing in the stock market is that buying shares in the stock market is as easy as ABC! You don’t need to go through a lot of processes to invest in them. Once you decide on the investment app to use download it, register your details, and start trading.
3. Potential High Returns in the Stock Market
When you compare stocks to other investment assets, it has a higher potential return. Even with inflation, you tend to experience a higher return especially when you invest for the long term.
4. You can Invest with Little Amount
Investing in the stock market is relatively affordable. You don’t need to have a lot to buy stocks. It gets better when you invest in the Trove app. The minimum amount to invest is $10 or ₦1000. I think that’s so cool. What do you think?
5. The Stock Market is Safe
Yes, the stock market is safe. For example, US stock is regulated by the SEC (Security and Exchange Commission. The SEC is an independent federal government regulatory agency that provides financial protection and maintains integrity in the securities markets.
Even in the case of fraudulent activities with an investment platform, they protect your rights and assets. This gives investors confidence in no mishappening.
6. Liquidity
Stocks are seen as liquid assets because they can be easily converted to cash. This isn’t the same for assets like real estate as they require more time to process. Investors love to trade in the stock market because of this ease of conversion.
7. Dividends
Dividends are rewards from the company to their shareholders or investors. Dividends can significantly reduce your portfolio’s risk, boost stock returns, and give tax benefits.
FAQ
Is it Good to Invest in the Stock Market?
Yes, Investing in stock is always a good decision . If your view for long term and stick with good fundamental stock, sure you make huge money from stock market.
How Much Money Should I Invest?
The amount to invest in the stock market depends on your financial goals, risk tolerance, income, debt, emergency fund, and investment horizon. Consider investing a percentage of your income or a lump sum that won’t significantly impact your financial stability.
Conclusion
There are several benefits of investing in the stock market. However, before you invest in a company, I will always recommend you do diligent research on the company’s history and growth. This would help you make well-informed decisions and position yourself to earn robustly from it.
Do you have any questions about investing? Drop a comment, Tweet, or DM on any of our social media platforms @trovefinance
