Let’s dive in and see how the stock market can help you and your better half build wealth together!
Getting married is such a special experience – it’s like two separate lives joining together as one, like a company merger!
The newly married tag feels special, but after the wedding buzz subsides, it’s time to start thinking about settling into your new life together. And what better way to do that than by planning your investments for a brighter future?
Last week, we discussed investment options for couples, today we will focus on one particular investment option that has worked wonders for many. Yes, we are talking about the stock market.
Let’s dive in and see how it can help you and your better half build wealth together.
Why Stock Market Can Be Your Ideal Investment as a Couple?
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Exponential Growth Potential
Have you ever wondered why so many people are fascinated by the stock market? One reason is that we have all heard inspiring stories of individuals who started with a small amount and created enormous wealth, like Vijay Kedia and Rakesh Jhunjhunwala. These success stories are often linked to the stock market.
Over time, the stock market has proven to provide inflation-beating returns. However, it’s essential to be patient and wait for the right entry and exit levels. Short-term volatility can be disturbing, and hence you must practice patience and believe in your investments for the long term.
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Diversification
Diversification is critical to reducing the risk of your portfolio. To diversify our investments, we invest in various asset classes. But did you know you can also diversify your portfolio while investing in the stock market itself? This can be done by investing across companies of different sectors. This means that your entire portfolio will not be affected if one company or sector experiences a downturn. For example, during COVID-19, the aviation sector took a hit, but IT and healthcare performed well.
Additionally, you can diversify your investment among large-cap, mid-cap, and small-cap companies and in different asset classes like bonds and real estate investment trusts (REITs). This can help you diversify your portfolio further and reduce risk.
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Invest in Small Amounts
Unlike other investment options, such as real estate, which needs a huge ticket size investment, you can start investing in the stock market with small capital. You can also start an SIP in a mutual fund for as low as Rs 500.
So, investing and liquidating your investment from the stock market is cheap and easy.
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Flexibility
Our financial goals change over time, so we hop from one investment option to another. But, within the stock market, various investment vehicles are available to investors that you can choose as per your risk appetite.
If you have a medium risk appetite, you can invest in hybrid mutual funds, which invest in equity, debt and other asset classes depending on the investment objective of the scheme.
Lastly, you can also opt for Exchange-Traded Funds (ETFs) whose performance is linked to the underlying asset like gold or a benchmark index.
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Passive Income
Every couple must create a source of passive income, and the best way to get it done is by investing in the stock market.
Investing in the stock market can help you generate dividend income. When companies make profit, they may choose to distribute dividends. This can provide a steady income stream for couples.
In conclusion, investing in the stock market can be a wise decision for couples looking to secure their financial future. By investing together, couples can build a diversified portfolio that generates long-term returns and allows them to achieve their financial goals.
Couples can make the most of their stock market investments with careful planning and a commitment towards a long-term goal
We offer a simple solution for investing in the complex world of finance through Teji Mandi portfolios. Teji Mandi is a Sebi-Registered Research Analyst you can trust for your stock market investment requirements.
Click to explore Teji Mandi Flagship and Multiplier Portfolios.
