Why it is important to invest in Share market in Nepal ?

 Investing in stocks is a good way to grow your money over time. By owning a piece of different companies, you can benefit from their success and see your savings grow. This can help protect your money from inflation and taxes, and increase your income. However, it's important to understand that becoming rich from stocks takes time and patience, as stock values can take years to increase significantly.

Benefits of investing in stocks:

 1.  The potential to earn higher returns

People invest in stocks because of the higher potential returns compared to other options such as bank CDs, gold, or government bonds. Historically, the stock market has produced more return per year, while bonds have only returned less than stock market. This is why many people choose to invest in stocks over these alternatives.

     2.  The ability to protect your wealth from inflation

Investing in stocks can help beat inflation. Over the long term, the stock market has provided returns that are much higher than the average rate of inflation. Stocks have been a good way to protect your money from losing value due to inflation. In comparison, stocks have historically produced double-digit returns each year.

    3.  The ability to earn regular passive income

Many companies pay a share of their profits to investors in the form of dividends. This is paid out regularly, usually quarterly, and some companies even pay monthly. This income from dividends can help add extra money to your paycheck or retirement income.

    4.The pride of ownership

When you buy a stock, you own a small part of the company. This means that you have a fractional ownership in the company and can benefit from its success. By investing in a company whose products or services you like, you can own a piece of it

    5.   Liquidity

Most stocks can be easily bought and sold on major stock exchanges. This makes them a more flexible investment option compared to others, such as real estate, which can be difficult to quickly sell. Stocks are more liquid, which means you can easily buy or sell them as needed.

    6.  Diversification

By investing in stocks, you can create a well-rounded investment portfolio that includes a variety of industries. This diversity helps reduce your overall investment risk and can lead to improved returns. A stock-based portfolio can be combined with other investments, such as real estate, bonds, and cryptocurrency, to further diversify and strengthen your investment strategy.

     7.  The ability to start small

In share market you can start buying shares from 100 rupees. You can fill IPO from 1000 rupees and you don’t have to pay brokerage fees too. And you can also buy mutual funds if you find hard to choose particular stocks.

 Is there any Risks of investing in Sharemarket ?

Investing in stocks has its benefits, but also has drawbacks to consider. The main drawback is the stock market's tendency to be volatile, with declines of 10% or more occurring regularly. If you can't handle this kind of fluctuation, stocks may not be right for you. Additionally, if you need the money soon, have high-interest debt, or don't have enough cash in an emergency fund, stocks may not be the best investment option. If you're retired or nearing retirement and need a steady income, stocks may not be the best fit for you either. Lastly, if you don't have the time or interest to research stocks, it's better to consider other investment options.

It is not suitable to Investing in stocks if:

·        You're uneasy with the possibility of your investment losing value

·        You need the money soon for a big purchase

·        You're retired and need a steady income

There are also other factors that may not make stocks a good option for you, such as having high-interest debt, lacking an emergency fund, or not having the time or interest to research stocks.

Should I start investing ASAP ?

Investing in stocks, even when the market is at an all-time high, is a good idea for most people as the potential benefits outweigh the risks. The timing of buying stocks is not as important as the length of time invested in the market. Not buying stocks right away because of market conditions may lead to missing out on gains. Stocks tend to recover from corrections quickly and the longer you are invested, the lower the chance of losing money.

Best time to buy shares is right now!

Investing in stocks can earn you high returns if you have money you won't need for a while. It's better to invest now than wait, as waiting can negatively impact returns. Investing in stocks can be a good idea if you have money you won't need for a few years, as it has the potential to earn the highest returns. Don't wait to invest as this could lower your returns instead of increasing them.  The best time to buy good company stocks is usually now.