Should I use the Stock Market to Create a Retirement Corpus

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Share markets hold quite a lot of potential to make someone rich enough. One can invest in a variety of assets to make huge profits. Share markets give access to a variety of financial instruments. Every financial asset is unique with its own set of characteristics. Different types of securities widen the scope of our investments. We can invest in an asset that suits our financial position and goals. So, the stock market becomes a good option for all investors. If we have sound knowledge and invest wisely, we can indeed create a sizable corpus of funds. This is true even if you are planning for your retirement. You can generate considerable profits and secure your post-retirement life.

Many people have, in fact, altered their fortunes by investing in the share market. We have several examples from the past where investors successfully made significant returns, thereby securing their future. Proper planning for one’s share market investment can lead to your destination. The share market allows you to invest in financial instruments like equities, which are known to provide excellent returns. Such assets usually outperform even the highest levels of inflation. Except in bleak economic conditions, the returns from equity investments go below the existing inflation rates. In addition, equities also outperform several other financial assets like fixed deposits, recurring deposits, or real estate investments. Let’s look at the advantages of share market investments.

Benefits of investing in the stock market

Higher Returns

Among all the asset classes, share market investment can give you the highest returns. As already mentioned, securities like equities provide considerably higher returns than other assets. They may be a little risker, but if dealt with smartly, one can maximize their potential. Since you basically aim to plan for your retirement, you will have sufficient time to get good returns. Most experts believe that stock investments yield much better results in the longer run.

Diversification

You can make a share market investment in several types of assets. So, you can exploit the opportunities presented by various assets. For example, you can make a share market investment in stocks, bonds, exchange-traded funds (ETFs), index funds, etc. Investors need not worry too much about the risks of losing money from a share market investment. If one invests in different kinds of assets, the risks get lowered. Even if some of the assets may not perform as expected, others can balance them out. Hence, if you hold a proper mix of fundamentally strong assets, you will mainly emerge profitable.

Tax benefits

A share market investment also provides tax benefits. Investors get long-term capital gains for investments held for 12 months or above. Investing in some assets offers short-term capital gains for investments of less than a year. Further, you can offset or carry forward any loss for up to eight years. So, a share market investment will help you save on taxes, too. This can boost your overall wealth.

How Much Should You Invest

It is difficult to give an exact estimation. However, as we know, the stock market does provide excellent returns, and we can follow some strategies to maximize our chances. The first thing to keep in mind is their financial strength. You should decide the amount of your share market investment based on your income and monthly expenditures. The next aspect is how much risk you can afford. Accordingly, choose how much funds you can allocate for stock market investments. Finally, consider your financial objectives. You can adjust the amount of money set aside for investments based on your requirements. You can also take the assistance of a financial advisor to invest more efficiently. They will help you with your investments.

It is wise to invest in the stock market with well-known financial services firms that have a reputation for providing excellent advisory services. Kotak Securities is one such firm with vast experience in providing financial services. The leading organization has several offerings for investors. In its journey spanning over two decades, it played a vital role in achieving the goals of numerous investors. They provide demat and trading accounts as well as assist in investing in the share market. Kotak Securities also provides the best mobile trading app. You can support it quickly as it contains several useful features. Watchlist, trading tools, advanced indicators, and charts. You can start investing right away and begin your journey for a secured retirement.

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