Diwali is also seen as the beginning of a new financial year in the Hindu calendar. It is believed that investments made during this period will yield benefits. Apart from buying gold and other precious metals, people also invest in stocks on this day. Every year on Diwali, stock exchanges open for a one-hour session, known as Muhurta. This is different from the normal market hours. If you want to start investing then not only trading but you can start your financial journey through investing on auspicious day. This is your perfect “muhurta”.
Investment broking apps and websites have made it easy to enter the capital market. Emerging fintech platforms have simplified the investment process for tech-savvy millennials and GenZ. All you need is a smartphone and an internet connection to open your demat account and start investing in the stock market. On the day of Muhurta, let us see how investing in the stock market is beneficial.
Strong returns potential over the long term
Good returns are expected from investing in the stock market. Stocks offer higher returns over a longer period of time as compared to other asset classes like bonds and fixed deposits. The returns remain high even after tax deductions. The important thing is that stocks have a track record of higher returns than other asset classes in comparison to inflation. Apart from this, most companies pay dividends to investors every year. Think of it as an added benefit that you can get while investing in stocks.
high liquidity
One of the most important aspects of investing in the stock market is its high liquidity. The shares can be sold at any time and the money gets credited to your account. The two major stock exchanges in India – National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) – trade in high volumes every day, thus maintaining high liquidity in the stock market. As a result, new age investors can buy and sell stocks knowing they can redeem them whenever they want, with just the click of a button.
flexibility in investment
Investors also get the facility of investing in the stock market through SIP. This is especially helpful for those who are just starting their investment journey in the capital market. Most of the people look for small investments keeping in mind the initial risk factors. This is where stock markets provide flexibility. If you are looking to invest, your stockbroker can help you choose stocks according to your budget and preferences by using advanced technology like artificial intelligence and machine learning. Also investing in the stock market is not a time bound commitment. You can do this at your own pace and convenience, buying on the downside and selling on the rise.
The economy benefits from speed
By investing in the stock market, you can directly get the benefits of a fast growing economy, because the revenue of companies increases manifold over time. As an investor, you get the benefit of this. As a result, the value of your investment in the stock market also increases.
profit margin for investors
Investing in the stock market gives long term returns. It is safe and transparent. More importantly, when it comes to a targeted investment plan, its use proves helpful in beating inflation. Emerging tech-enabled platforms make it easy to discover investment opportunities, trade and invest, and track capital market trends, even for beginners. It is never considered too late to start investing. This year the stock market will open for Muhurta trading on November 4 from 6.15 pm to 7.15 pm. So, get ready and start your investment journey this festive season.
(Article: Prabhakar Tiwari, Chief Growth Officer, Angel One Ltd )
(Investing in the stock market carries risk. Please consult your financial advisor before investing. Financial Express cannot be held responsible for the author’s views.)
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