By: RAVI HARI, Senior Writer
An investor often thinks whether investing his/her money in a savings scheme/FD, or investing in Stocks would give better returns. An interest rate between 5.00% and 7.5% could be expected on Fixed Deposits, NSC, PPF, and other such schemes. Although these options are safer compared with investments in Stocks, the returns are low. The returns further go down after the tax deduction. During inflation, there is no good return on the money that one invested in these schemes.
If one is looking to get higher returns - in the range of 10% to 13% - for investments, one needs to take some amount of risk, and can consider buying stocks of companies. If money is invested in companies that are stable and are doing good in the market, there is every chance to earn profit and grow your money.
What are the advantages and disadvantages of investing in Stocks:
Pros:
- There is no bar on amount that could be invested
- A person can invest any amount
- Money can be withdrawn as and when one needs
- Stocks can be bought at low prices, and can be sold when prices are high
- One gets ownership of shares in a company
- Can overcome inflation due to its high returns factor
Cons:
- Shares offer a variable return
- Returns can be expected if investment is done for a long period of time
- Less stable securities due to market fluctuations
Logically, one should start investing only little money initially. The details of the company you are investing in should be checked. Study the stocks that have a strong potential for growth, because returns on your investment in shares depend on the performance of the company.
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
