Is It Worth to Invest in Stock Market Rather Than Bank FD

Most of the people get confused investing money in Stock Market is it worthy than Bank Fixed Deposit. This confusion prevents one to think whether to go for FD or to invest in Share Market.

In India people prefer to go with Bank FDs because they think the money will get double in longer locking period and it is safe compare to money market. In stock market it is risky and chances are higher to loose capital.

These are the approach we hear from the people whom we meet in a discussion for investing in the stock market. But i try educate retired person, youth and different category earning individual regarding financial market.

If we compare Stock Returns against Bank FD we found it is much higher capital appreciation done in longer period than Bank Deposits. So, to enter into any new segment you need a basic training before you dive into the depth of the market.

Lets begin with:

What is Nifty Index?

A Nifty Index is an instrument which gives a direction and tells you the real sentiments of the stock market. Nifty Indices moves up and down according with the support of the top corporate stock listed in its Nifty Segment group.

In Nifty 50, Indias top 50 corporate stock listed in it. Nifty Bank, all the top performing Banking stock listed in it. Nifty MidCap, not larger nor smaller a good fundamental and have a bright future growth corporate stock listed in this.

Now the fact is to invest money in share market is a risk and what risk rewards can be get out of it. Let me explain our Indian economy growth depends on the top companies like Reliance Industries Ltd, Tata Group of Company, Banking Sector, Oil Sector companies etc.

If such above group of companies decline in operating business then our economy will affect drastically in which unemployment, poverty in nation can be seen at every corner. But business is the only platform if the operations and management of the organization do’s well then there is a lesser chance to collapse.

The above quotes gives us an enough sense that investing in a good fundamentally sound company gives a higher returns in longer run and risk to reward ratio is lesser. Well, in the stock market Bull and Bear run is a common to see.

Bull run is a positive growth run where the investment start giving profits and Bear run is a negative growth run where the investment value comes down and the capital get depreciate. Adding to it stock market runs in sentiment across the globe.

For beginners there is an ample of study books available online for stock market investment strategy. Or you can touch with us for better guidance in all prospect whether in Stock Market, Mutual Fund, Insurance etc.

Stay tune with us for more live updates in Equity Financial market.

admin

Hi i am Samiran Debnath Admin of this website. I am Financial Advisor by profession build client portfolio in stock market and Mutual Fund. I help people to dematerilise physical shares into electronic mode opening demat account. Help clients to choose best insurance policy for them. I love sharing my views on stock market and the benefits investing in SIP and Mutual Funds.

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1 Response

  1. April 25, 2020

    […] market can give a higher returns than Bank FD. You can check my earlier articles comparison between Bank FD vs Shares Returns in longer […]

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