If you are looking for one of the most potential options to invest and earn a significant amount of money, then nothing can be better than the stock market. Although there are several other options available in the market, you might prefer choosing stocks over others for various reasons. One of the main reasons why people are investing in the stock market as compared to others is that it provides high returns. Moreover, comparatively, no other long term investment proves to be as beneficial as the stock market.  

Types of Investment in India

When it comes to investing in India, there is a wide range of options. Some of these investment types have been in the market for a long time, but then they prove to be extremely efficient. However, even the newer investment types are no less because they can yield better returns too. 

But some of the most prominent types of investment in India include the following.

● Stocks
Also referred to as company shares, stocks happen to be one of the most popular types of investment in India. With stocks, you will be able to purchase ownership for the company, thereby contributing to its growth. Shares are listed in the exchange market, and these are usually a long-term investment. 

● Mutual Funds
Mutual funds can be considered to be one of the oldest forms of investment, but it is in recent times only that mutual funds got game. Mutual funds are like a pool of different investors, thereby helping you reach optimum returns. Based on the type of security required, you may prefer investing in mutual funds. Since these are flexible investments, you have the total liability to purchase and sell whenever as per your convenience. 

● Recurring deposit
Recurring deposit is a type of fixed tenure investment. Banks and post offices usually offer this type of investment. You will need to put in a certain amount of money for a pre-defined period and keep depositing money each month. Through recurring deposits, the people will get capital protection and would need to invest money in small chunks. 

● National Pension system
This is a new type of investment that helps you save tax. Through this system, investors can collect tax and get higher returns as compared to PPF and EPF. It is not entirely tax-free, but a part of it goes on to buy an annuity, thereby helping you get a regular pension. 

How should you plan your investment?

Well, a lot of factors have an impact on deciding whether you should invest or not. Whether you are planning to get quick returns or not, you should be careful with it. If you are planning to invest, you will need to take a lot of factors into consideration. Some of the prominent ones include the following.

● Before choosing whether to invest, you will need to conduct thorough research for a better idea. 
● A lot of people will come to you explaining how quickly you can get back the money, but don't you ever fall for these buy-and-sell schemes. 
● Keep a check on the rates of the commodity in which you have invested. 
● Whatever you are earning from the investments, make sure to keep a check on the tax. 
● Investment can get complicated if not taken care of properly. As a result, you must be careful with it and keep it simple. 


Why should you invest in the stock market?

If you are interested in the Indian stock market, the first thing you should be doing is conducting thorough research. If you want to invest, you need to know how the stock market works. The market is very different from the general one, which is why you should be careful with it. Various factors are influencing the shares and stocks. Thus, before you invest, you need to ensure that you have researched thoroughly and know where to invest. 

Often you might feel that you are losing money in the stock market, but then it can be useful if you are determined. If you ever feel confused, make sure that you do not lose confidence. If you do not have an accurate idea about the stock market, it is better that you know the market and then invest in it. If you analyze the market, you will easily be able to invest in profitable sticks. 

But if you are still confused about "why should I invest in the stock market?" let us just help you decide. 

Invest and grow your money

This has to be one of the best and simplest reasons why you should be investing in the stock market. It is for this reason that most of the people purchase and invest in stocks. Reports found out that investing in stocks can help you grow your investment somewhere between 7-10% per annum for the long term. 

While many people prefer investing in stocks for the long term, most of them invest in options trading too. Options trading can help you save a significant sum of money daily. However, you must have high capital so that you can better return. 

Studies show that regularly investing in the stock market can help you earn thousands to lakhs in no time. 

Stocks are growing

Comparatively, stocks have shown consistent and long growth over the past few years. Although there have been specific bad experiences such as negative pullback, cash crashing, and more, then stocks are ever-growing, but they have shown consistent growth. 

The positive growth of stocks has only gone upwards according to global economies. Experts suggest that over the years, stocks have only gone up. So, if you had invested some 30 to 59 years ago, you would have made a lot of money by now. 
 
Most people prefer investing in stocks as compared to others, as the odds are in their favor. So, if the market keeps going up, they will be able to make a significant sum of money. 

Stocks provide more than other investments

Investing in the Indian stock market is extremely helpful because, as far as history goes, it only shows the positive impact of shares. If you look back, you will find that most people are rich today by the investments they made through shares as compared to others. 

Buying stocks can be more beneficial than other commodities such as bonds, homes, and more. Both small stocks and large stocks can leave behind bills and other investment options. However, before investing, you need to ensure that you conduct the research thoroughly for a better idea. 

Easiest Investment

One of the main reasons why you should be investing in the stock market is that it is the most comfortable form of investment. If you have savings and want to spend, then you may consider a lot of options, but nothing can be better than the stock market. If you plan to invest in the stock market, all you need to do is sign up with any online trading broker and start your work. 

There are different trading platforms available online. Thus, before you invest in any one of the following, you need to conduct thorough research about it. Comparatively, stocks can turn in cash in no time, and it is for this reason, it is also referred to as a liquid asset. One of the main reasons why people are investing in stocks is that they feel that they may get back their money anytime they want. 

Learn From Stock Market Investing

Investing in stocks is all about learning and having fun. Honestly, investing in stocks can give you several valuable life lessons. Investing in the stock market will provide you with an idea about how the companies work, what products are to be launched, and the factors responsible for their success and failure. 

Similar to learning, with stocks, you can have an idea about the company, its CEO, future leaders, and how it might have an impact on your finances. There is nothing more fun than purchasing stocks and selling it only when it starts going up. You may begin with Rs.10,000 today, and if you are investing it right, after some time, the investment may go up for more than 1lac. 
 
Steady income

A lot of people are under the misconception that investing in stocks does not bring them enough and regular income. However, this is entirely wrong because investing in dividend stocks can help you get real cash on a monthly basis. However, the amount you receive depends entirely on how much you have been spending per annum.

Tax-Free Profit

If you sell Equity shares within one year of purchase then any gain or loss will be counted as short term gain or loss . irrespective of your tax slab, short term capital gain is taxable at 15%.But if you are invested for more than one year in equity shares , then it will be long term capital gain and it is taxfree upto limit of 1 Lakhs. Above 1 lakhs you will be taxed at 10% for equity-based mutual fund gain or gain from selling equity shares.

Making money through stocks is easy. Although the Indian stock market is volatile, you can make a decision that can help you on an overall basis to reap all the benefits.