In 1500 words describe the reasons for investing in the stock market with an emphasis on stocks,...

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In1500 words describe the reasons for investing in the stock marketwith an emphasis on stocks, mutual funds and bonds. Compareadvantages and disadvantages of each of these options (stocks,mutual funds and bonds).

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In 1500 words describe the reasons for investing in the stock market with an emphasis on stocks mutual funds and bonds Compare advantages and disadvantages of each of these options stocks mutual funds and bonds Any rational investor invests in various instruments primarily to earn from dividend or capital appreciation on investment over a period of time The objective may be profit maximization which is short term or wealth maximization which is long term in nature Investments are made to beat inflation and to maintain a certain standard of life style If cash is kept idle in bank accounts then it will earn only nominal rate of interest which will not help to beat inflation hence the Investors look for alternate investments where they can get higher returns In principal higher the risk higher is the Expected Return There are numerous avenues and financial products available for an investor according to his risk appetite Debt Funds Equity Commodities Real Estate are some of the lucrative investment options It is well known fact that power of compounding works wonder A simple investment of 1000 per month for 10 years would grow on to 191250 at 10 return The idea behind investment is that your money should work harder than you Although it is well accepted fact that investment and returns help to uplift ones standard of living and full fill the life aspirations with regards to money matters but it is also true that investments are risky too Hence it is important to invest to 1 Fight Inflation 2 Create Wealth By investing one can aim to have a better corpus by the end of the defined time period 3Meet lifes financial aspiration childrens education marriage house purchase retirement holidays etc 4 Fight contingencies and emergencies Stock Investment implies directly investing in the shares or stocks of the company and becoming the owner of the See Answer

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