Simple answer “ To Get Good Returns “
- If you deposit your money in FD, hardly you’ll get around 5 to 6 % return. Where as in stock market , one can expect a minimum return of 12 % . ( And from 2020 to 2021 Some stocks has given a return of more than 1000% – Imagine if you had invested 10,00,000 in such stock, your return would have been 1,00,00,000 )
- And if you are salaried employee, one can save tax under 80 C mutual fund ELSS scheme upto 1,50,000. which has a locking period of 3 years. ( where as in Bank locking period will be 5 years). Here one can expect good returns as well as can save tax.
Also I would suggest you to Invest, rather than to trade.
The Power of compounding .
Imagine Mr. A has invested 1 lac rupees at the age of 20.
He shall have to wait for 18 Years (Age -38 years) to see 7 digit amount. i.e 10 Lac. ( assuming 15 % return in an year )
And now you see the power of compounding,
He’ll get next 10 Lac only in 5 Years ( Age – 43 ) – ( again assuming 15 % return)
and another 10 Lac in next 3 Years only. ( 15% return in an year )
At the age of 58, His one lac investment will become 1.76 Crore. ( 15% return every year)
Warren Buffet tasted his first billion only at the age of 56. Buffet started investing at the age of 11 !.
Now Imagine the Mr . B has started his first investment (1 Lac ) at the age of 30 Year. ( Only 10 Years later)
At his 58 years of age he’ll end up having only 43.53 Lac ( assuming 15 % return every year )
Start investing as early as possible.
And below pic will give some more idea.