stock market tips

Difference between the ROI You Earn from Investing in Stock Market and Fixed Deposits

Stock Market

If you invest in online share market, then you will get the return of approximately 12 – 18 % per year. However, if you invest in savings in banks then you will get the return of only 4–6% per year. While if you invest in fixed deposit then you will get 6–8% per year and mutual funds will give you return of approximately 10–15% per year. Thus, you can clearly see stocks have the highest potential to beat inflation. Inflation is about 5 to 7% per year. You can make money in Indian stock market.

However, stock trading is an unpredictable game, in which returns are not guaranteed to investors/traders. Before investing in the stock market, it is good to understand the risk of the stock. Because of the lack of strategy and knowledge investors can lose 100% of the money they invested. In some cases, they may also lose more than they have invested. Investors must have the clear mind to bear the loss in trading.

One must invest in the share market to make their money grow at the fastest pace. One should choose his investment mode or method in such a way that it gives best returns possible over a period of time, say a year or five years or 10 years or more. All investment do rise or fall over a short period of time. That is there is up and down periods in each investment. Saving is to set aside a portion of your present earnings for future use and investing is to use that saving, in such a way that it grows over a period of time so as to beat inflation. Many young people avoid investing in stocks for a long period. They only say that they are still young and have a lot of time on hand for investing. They don’t understand the value of early investing and compounding.

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