{"id":518,"date":"2019-10-15T11:44:19","date_gmt":"2019-10-15T11:44:19","guid":{"rendered":"https:\/\/www.technicalanalysisofstocks.in\/articles\/?p=518"},"modified":"2022-11-03T05:24:19","modified_gmt":"2022-11-03T05:24:19","slug":"what-are-the-benefits-of-investing-at-an-early-age-in-the-share-market","status":"publish","type":"post","link":"https:\/\/www.technicalanalysisofstocks.in\/articles\/what-are-the-benefits-of-investing-at-an-early-age-in-the-share-market\/","title":{"rendered":"What Are the Benefits of Investing at an Early Age in the Share Market?"},"content":{"rendered":"<div class=\"f5e6b27933b27206dd1e7c8ffd0cf440\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-4887266588189027\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- TA Blog Below Image -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-4887266588189027\"\r\n     data-ad-slot=\"2552137125\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n\n<p>India\u2019s vibrant economy provides ample opportunities for everyone to earn a decent living and earn <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/beginning-online-stock-trading-just-for-a-little-extra-income-you-can-do-it\/\">extra income<\/a> through various investment options. The topmost and fastest way to earn this extra income is by investing at an early age in the <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/anticipation-trait-of-share-market\/\">share market<\/a> or the stock market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Invest in Share Market?<\/h2>\n\n\n\n<p>Understandably, stock markets in India- <a href=\"https:\/\/www.bseindia.com\/\">Bombay Stock Exchange<\/a> and <a href=\"https:\/\/www1.nseindia.com\/\">National Stock Exchange<\/a> witness frequent bullish and bearish trends. Meaning, <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/how-pr-affects-stock-prices\/\">stock prices<\/a> can rise or fall without any prior warning. And these bullish and bearish trends make investments in the share market more exciting while providing opportunities to make some really huge amount of money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Superb Stock Exchanges of India<\/h2>\n\n\n\n<p>The share market in India offers multiple choices for investors. For example, stocks of over 5,000 companies are listed on the BSE- which is the highest number for any share market in the world. The NSE, which is relatively new, lists more than 2,000 stocks. These shares are in the large cap, <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/why-to-invest-in-mid-cap-stocks-over-large-cap-stocks\/\">middle cap<\/a> and various segments of the small cap companies. Hence, the sheer choice that an investor has can we well imagined.<\/p>\n\n\n\n<p>And finally, the BSE and NSE operate under strict rules and regulations of the Securities &amp; Exchange Board of India or SEBI. Before any stock gets listed on the share bazaar, the company has to comply with complex and stringent requirements of SEBI and various other departments of the Indian government. Hence, chances of <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/reducing-stock-market-risks\/\">stock market<\/a> scams such as the ones that occurred in 1992-1993 are now almost negligible.<\/p>\n\n\n\n<p>These\nconditions are favorable for anyone to invest in the share market. Moreover, any adult can <a href=\"https:\/\/surejob.in\/how-to-invest-in-the-share-market.html\">invest in the\nshare market and earn a lot of money<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Invest at Early Age in Share Market<\/h2>\n\n\n\n<p>As I mention\nearlier, people of any age can invest in the share market. However, there\u2019re\nseveral benefits when you start investing at an early age in the share market.\nSounds interesting? Continue reading.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Starting with Low Investments<\/h3>\n\n\n\n<p>There\u2019re no\nspecific lower limits for investing in the share market. This makes it ideal\nfor investing at an early age. You can start by buying just a few stocks every\nmonth and build a portfolio over a number of years, when you begin investing at\nan early age. <\/p>\n\n\n\n<p>This means,\nby the time you reach retirement age, you would have enough stocks that would\nbe giving you excellent dividends to cover your golden years when you don\u2019t\nhave active income. Putting aside even Rs.1, 000 per month and buying stocks\nwould be enough for a beginner at early age. You can step up investments as you\ngo along.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Excellent ETFs in Share Market<\/h3>\n\n\n\n<p>Maybe you\u2019re unaware of this option. The Indian share markets also lists <a href=\"https:\/\/www.investopedia.com\/terms\/e\/etf.asp\">Exchange Traded Funds<\/a> or ETFs. Basically, an ETF is a type of Mutual Fund. However, it is different from a Mutual Fund because you can buy and sell ETFs on the <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/what-is-stock-market-purpose-and-pull\/\">stock market<\/a> whenever you want. ETFs allow you to diversify your investment portfolio. <\/p>\n\n\n\n<p>Usually, large Asset Management Companies or AMCs launch New Fund Offers for ETFs. This means, an ETF has a face value of Rs.10 only. And the AMC adds a premium to the ETF. Therefore, buying an ETF during the New Fund Offer works out much cheaper than buying in the secondary <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/benefits-of-investing-in-stock-market\/\">market or from the stock market<\/a>. The price of ETFs rises exponentially over the years. Hence, whatever you invest on an ETF NFO will give you extremely high returns in future.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stocks Are Highly Liquid<\/h3>\n\n\n\n<p>When you start investing with small amounts at early age in the share market, you\u2019re also building a sort of corpus fund or saving for emergencies. You can sell the shares you\u2019re holding while <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/does-stock-market-technical-analysis-work\/\">stock markets are working<\/a> from Monday to Friday except national holidays and festivals. And the money goes into your bank account or trading account within a few hours. This eliminates the need to take loans or borrow money from relatives and friends.<\/p>\n\n\n\n<p>Furthermore, some <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/how-large-shareholders-manipulate-the-stock-price\/\">stocks whose prices<\/a> are high will fetch you much more money than any savings account or Mutual Funds when the share market is on the upswing. Therefore, you can cover costs such as buying a home or marriage, medical treatment for some family member or any other unexpected expense. Selling the stock you own is better than taking loans. Because a loan can lower your credit ratings. Selling stocks doesn\u2019t hurt your credit score.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buying Stocks during IPOs<\/h3>\n\n\n\n<p>Another\nbenefit of investing at an early age in share market are the Initial Public\nOfferings or IPOs. You can buy stocks during IPOs and maintain them in your\nportfolio till they start paying rich dividends. All dividends can be utilized\nfor more investments. Therefore, it is genuinely advisable to start investing\nat an early age in the share market.<\/p>\n\n\n\n<p>Stocks during an IPO also come with a premium. However, prices of a right stock you invest upon will soar when it starts <a href=\"https:\/\/www.technicalanalysisofstocks.in\/articles\/stock-market-trading\/\">trading on the share market<\/a>. The dividends and price rise gives you an additional benefit. Often companies also announce bonus shares for shareholders. Hence your portfolio of holdings grows bigger without investing more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">In Conclusion<\/h2>\n\n\n\n<p>These four\nbenefits of investing at an early age might prompt you to consider share market\nnow. And it would be an excellent decision too. Buying shares for the long term\nis an excellent idea to build wealth. The sooner you start- the better.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>India\u2019s vibrant economy provides ample opportunities for everyone to earn a decent living and earn extra income through various investment options. The topmost and fastest way to earn this extra income is by investing at an early age in the share market or the stock market. Why Invest in Share Market? Understandably, stock markets in India- Bombay Stock Exchange and National Stock Exchange witness frequent bullish and bearish trends. Meaning, stock prices can rise or fall without any prior warning. And these bullish and bearish trends make investments in the share market more exciting while providing opportunities to make some <\/p>\n","protected":false},"author":3,"featured_media":537,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Benefits of Investing at an Early Age in the Share Market?","_seopress_titles_desc":"India\u2019s vibrant economy provides ample opportunities for everyone to earn a decent living and earn extra income through various investment options. 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