4 ADVANTAGES OF INVESTING IN STOCKS
Have you thought about investing in stocks?
The first thing you need to know is that Stock Investing is one of the types of variable income investment, that is, within variable income there are several types of assets. And variable income assets are those whose remuneration or return on capital cannot be calculated at the time of application, and may vary positively or negatively, according to market expectations.
If you have never invested your money before, you need to have some knowledge about the market and know what you are doing. If you have already invested in other types of investments before and want to increase their profitability and have more security, then you need to invest in stocks!
Here we will show you 4 advantages of investing in shares.
Fixed income only protects from inflation
The role of fixed income is to keep your money over time. However, if you really want to increase your equity and make money from investments, then Stock Investing is advisable to you.
You win twice with the shares
If you invest in stocks, you will win at two different times. When the stock price increases (in this case, it appreciates), you gain from it. In addition, you also earn from the company’s dividends, which are a part of the company’s profits distributed among the company’s shareholders.
When you receive this amount, the money will fall directly into your account at the brokerage. There, you decide what you want to do with it. You can keep the money and do what you want or you can invest that amount in another investment.
Protect your investments with stocks
If you invest only in fixed income, be careful! It is very exposed to inflation and the country’s interest rate. In the case of variable income, this risk decreases considerably, because normally when the interest rate falls, the shares appreciate. Thus, by putting part of your money in shares and part in fixed income, you always win, both with low interest rates and high interest rates.
In addition, you make your investments safer. Because if you have a problem with fixed income, actions will help you and the opposite can also happen.
Good liquidity with shares
In some Stock Investing plan, your money will be held for 2 or 3 years until the security matures. If you need to use this money for an emergency or want to invest in another investment, you will have to look for other means, because this will not happen.
In variable income, you can sell your shares super-fast, and most of the time – between 2 or 3 days – you already have the money in your account at the brokerage.
For those who are already in the market investing and understand the subject, Stock Investing is a great option to have more profitability. You earn more money, in addition to being able to protect your investments.
For this reason, it is important to study finance and understand the market so that when something “bad” happens you will not be shaken and will be able to reverse the situation.