Today, we have to talk about the share market, should we invest in the share market or not? The share market was born as Unit Trust of India on 1st February 1964 and today it has reached above Rs 473 lakh crore (September 2024). As some people still see the stock market as a form of speculation, but in recent years, it has given a good return to the people which is much higher than fixed deposits and any other government securities deposit scheme. Even today, many people in our country do not have good knowledge about the share market due to which they hesitate to invest in it. But at present there are many companies and banks of this type which invest people’s money in the share market through mutual funds and people having a lot of trust in them. Such as ICICI Bank, SBI Bank, PNB Bank, Tata Capital, Bajaj Finance, HDFC Bank and others.
Let us know through some points why we should invest in the share market.
Higher rate of return: – As we know that in recent years the share market has given good rates of return which is much higher than fixed deposits and any other type of security, today people are earning 30 to 40%. You can also get annual returns from the share market which is provided by some big and famous mutual fund companies like as- Quant Small Cap Fund Direct Plan-Growth- 67.91%, ICICI Prudential Technology Direct Plan-Growth- 51.73%, Tata Digital India Fund Direct-Growth- 37.81%, Adtiya Birla Sun Life Digital India Fund Direct-Growth- 40.10%, SBI Technology Opportunities Fund Direct-Growth- 36.75%. (This annual data is for the last 3 years. Source: – Policy Bazaar)
To Achieve the Financial Goal earlier: – Today everyone wants to get maximum returns by investing their money at the right place with security so that they can fulfill their financial needs as quickly as possible. By investing in shares of some good companies or by investing through good mutual funds, people can quickly fulfill their financial needs which are not possible through any other means.
For long term Growth or security: – Today everyone wants that when he retires from job or business after a long time, he should have a good bank balance so that he does not depend on anyone and can fulfill his needs. If we also invest monthly through SIP (systematic investment plan) in mutual funds, then after a long time of 20 to 30 years, we will get the money back with a good return which will also ensure future security.
New investor must go with mutual fund: – Any new investor should invest only in reputed mutual funds because an investor cannot analyze all types of companies shares, hence direct investment should be avoided, the reputed company should have a portfolio of mutual funds, and they can analyze from time to time. The portfolio contains shares of many different companies which can give good returns over a period of time.
Conclusion: – On behalf of this chapter, any investors should invest in mutual funds to increase their capital but first of all they should keep some things in mind,
1. In which type of mutual fund, they want to invest like Equity mutual fund, balance mutual fund or others.
2. How much risk can they bear?
3. Mutual funds and mutual fund companies should also be analyzed properly.
4. How much investment would be appropriate which will not burden them?
Assistant Professor of GNIOT Institute of Professional studies
SIDDHARTHA AGARWAL (B.COM DEPARTMENT)