The Indian equity market has been an attraction for foreign institutional investors throughout 2023 which gave strength to Indian stock exchanges NSE’s Nifty 50 and BSE’s Sensex 30 indices and taking them to their life time highs of 20000 & 67000 respectively. This remarkable rally is continued in September as well, backed by PSU sector, financial institutions, Auto as well as FMCG.
Market is in good mood of giving returns to its investors but here many experts are warning that after hitting the all time highs, the Indian stock market may witness some profit booking and range bound movements in near term. Experts are also suggesting the Indian market investors to be cautious while selecting the stocks for investors because market is trading at high valuations and may face resistance at higher levels.
An investor can achieve their short term of long term goals by investing in share markets by diversifying their investment in different sectors within stock market like Auto, pharma, BFSI, PSU & private banks, I.T sector, FMCG etc to stay safer during profit booking period.
You can create a corpus for your children's education and retire with the help of stock market investing.
One of the main reasons why people invest is to meet their life goals. These are objectives that we have set for ourselves. There are various financial instruments that people can use to achieve these goals. One of these is stocks.
This article will discuss the various goals you can achieve through stock market investing.
1. Long Term Goals Like children Education
India's education inflation rate is among the highest in the world. According to reports, the country's top management schools have raised their fees by 5% to 17% for the upcoming academic year. This means that students will have to pay around 80,000 to 2 Lakh more.
To meet the rising cost of education, it is important that you invest in inflation-fighting instruments like stocks. This can help you accumulate the necessary expenses for your children's education.
2. Retirement Planning
One of the most important factors you should consider when preparing for retirement is having a sufficient buffer to cover your post-employment needs. Having a large enough retirement corpus can help you sustain yourself during this period.
While creating a retirement corpus, it is also important that you consider investing in inflation-fighting instruments. This can help you build a larger pool of funds for your retirement needs.
3. Contingency Plans
Unlike other types of financial instruments, stocks can be easily liquidated. If you are a believer in fundamentally sound stocks, you can sell your assets whenever you need to. However, it's important to note that the companies that you invest in must have strong fundamentals.
Preparing for emergencies is also important because they can happen anytime. A sufficient emergency fund can help you manage your finances in an unexpected crisis.
4. Make a Corpus for Short-term Requirements
One of the most critical short-term goals people can achieve is buying a car or going on a vacation. With the help of stock market investing, they can build a fund for these goals.
It's also important to remember that the stock market is a cyclical market and that volatility can happen at any time. However, it's important to remain patient and not panic when it comes to investing.
All these goals can be achieved with the help of experts who use modern tools and technology to understand and predict market movements.
Aim Capital Financial Pvt Ltd is one such institution that helps its clients in building long term wealth by investing in various financial products available in India.
Talk to our consultants today by sharing your details at: info@aimcapitalfinancial.in
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