Benfits of investing in your future self

Investing is something everyone must do. There’s no point in earning money if you are not investing it. If you are looking to build wealth and financial stability in this hypercompetitive world then making smart investments is the way to go. There are many instances in this world where no investments have made people go from riches to rag. Sushil Kumar, winner of KBS won Rs 5 crore in Kaun Banega Crorepati in 2011. People who knew him had anticipated that he must be living a comfortable life as he won such a enormous amount. But instead, he went bankrupt due to poor management of money. Let’s find out further how investing benefits can reap you long-term benefits:                               

1.     You stay ahead of inflation

      Inflation is the general annual increase in prices and the decrease in the buying power of your money. Although the rate of inflation can vary significantly, historically it has averaged approximately 3%. If you don’t invest your money then inflation catches you up and you lose all the money you have earned. To keep up with the inflation rate you must invest in stocks, mutual funds, and other investment instruments. Don’t let inflation suppress your wealth.

2.     Save for retirement

      You need to start saving money for retirement while you are working. Invest your retirement funds in a diverse range of assets, including equities, bonds, mutual funds, real estate, companies, and precious metals. Once you reach retirement age, you may continue to live off the income from these investments. 

3.     Higher rate of return 

      Investing in stocks and mutual fund yield a higher rate of returns as compared to FD and RD. Your money has to be invested in a place where it can generate a high rate of return if you want to build wealth. You will make more money as the rate of return is higher. As a result, you should consider investing your money in stocks and mutual funds if you want the possibility to get a better return.

4.     Schemes for every financial goal    

      The best part of stocks and mutual funds is that they require a minimum investment of Rs. 500 and the maximum can be as much as the investor wants to put up. Before investing, one should take into account their goals for investing, risk tolerance, and income. Therefore, regardless of income, anyone from any background can invest in the stock market.

5.     Safety and transparency 

      With the introduction of SEBI guidelines, investing in stocks has become a safe option. There is a colour coding for all Mutual Fund plans. Hence, the entire investing process is transparent and secure and aids the investor in determining the risk level of his investment.

Long-term money growth can only be seen by investing in the stock market, but many individuals still don't invest in stocks due to the risks involved. However, in a developing country like India, investments and investor sentiment as a whole has become crucial factor in the expansion of the economy. You must understand the risks you confront and your degree of risk tolerance. It can help you as a potential investor and overcome your fear of investing in stocks and earn attractive returns.