Is it good to invest in Stock Market? Need Stock Investment Book?

Table of Contents

Introduction

Stock Market is a market where various financial instruments are transacted like Shares, bonds, mutual funds and other financial assets. Investing in the stock market can be a profitable way to grow your wealth over time. If we check the progress of the Indian Stock market then we can astonish by the growth of its speedy run of this market in the recent past. Within the span of 549 sessions, the sensex ( Stock market sensitivity index) rises from 60000 to 70000. Sensex is a popular market index which denotes the results of those stocks which are listed on the Bombay Stock Exchange.

Why Invest in the Stock Market?

Nowadays if we compare the return from the Secured sector like Bank, Post offices and other government financial institutions with the stock market return then we can easily check that in terms of returns the former cannot compete with the latter, is because yearly an investor can earn hardly maximum 8 per cent interest from any government financial institution whereas, after proper analysis of the market and the stock, for any long term investment on a recognised share an investor generally earns at least 20 %. In the case of stock investment, the most effective words are known as the more the risk more return. It means, unlike Government investment instruments the stock market has several options for investment into securities with a different range of risk factors. An investor needs to identify such risk factors when he needs big money from the stock market against his investment of money. Therefore, anybody who needs to increase their money through the stock market should have proper knowledge about the market as well as stocks listed on the stock exchange. Otherwise, it is hardly found that without having any knowledge about the stock market a person earns huge returns from stock-investment.

Preliminaries

If you feel interested in the investment in the Shares you need to plan first. When you start to do something new you need good planning. For instance, when you want to visit abroad alone you need to do little homework about the destination where you want to go. Regarding the stock market, you should have basic knowledge of the following factors. These are :

Set financial goals. What is your purpose for investment? search for the answer.
Do you want short-term gains or long-term gains?
For better returns are you ready to take bigger risk?
What kind of buyer you are? conservative, moderate, or aggressive?
Read all the investment options like stocks, mutual funds, ETFs, Bonds etc.
Look into the current economic market in India.
Plan to invest in any single stock or to purchase diversified financial instruments.
Take education about taxation matters against share investments.
Take the record of the history of your chosen stocks where you intend to invest.

How to educate yourself to know more about the Stock market?

Here is some great news for you to know about a book that really can guide you related to trading in the Stock market where you can make worthwhile investments that will yield expected returns in future. This book is nothing but a Bible of investment information where a reader can get a classic guide about the market. The name of the book is ” The little Book of Common Sense Investing” written by John C Bogle.

Click on the link below to purchase this wonderful book to learn about Stock investment.

Stock Investment Book

About the Book

“The Little Book of Common Sense Investing” is the classic guide to making wise financial decisions. John C. Bogle, a trailblazing mutual fund pioneer, reveals the secret to successful investing: choosing inexpensive index funds. His method promotes the easiest and most effective way to build wealth over the long run: buy a mutual fund that closely resembles an index of the entire stock market, such as the S&P 500, and hold onto it for as little cost as possible. Bogle adds two new chapters to this version, one on asset allocation and the other on retirement investment, to better assist investors. Warren Buffett extols the virtues of Bogle’s contributions, saying, “If a statue is ever erected to honour the person who has done the most for American investors, the hands-down choice should be Jack Bogle.”

Significant Facts on this Book based on Index Fund

Putting money into an index fund-heavy portfolio ensures that stock market returns will be distributed fairly. In fact, millions of investors have benefited from Bogle’s support of extremely low-cost index funds by achieving higher returns on their savings. Indian investors also find it valuable when they want to gather knowledge about how to enter the stock market. Bogle explains how to use index investing to achieve your financial goals. In this connection, certain measures are explained in this book. These are

Create a low-cost, widely diversified portfolio free from the rigours of sector rotation, management selection, or individual stock risk.
Put a stop to fads and marketing hype and concentrate on practical strategies that yield outcomes.
To create reasonable expectations for future returns, understand the factors that influence stock returns, such as dividend yield, earnings growth, and shifts in market value.
Recognise that, in the end, market aspirations are surpassed by commercial realities.
Avoid the traps of compounding costs and learn the power of compounding profits.

The useful advice in this book is supported by a wealth of historical facts in addition to being firmly grounded in sound financial theory. Bogle provides enough evidence to support his claims, showing how investing in low-cost index funds is a simple process that has consistently beaten most actively managed funds.

Chapters – Insights about Mutual Fund, Passive Investment,

This is the definitive manual for understanding the mutual fund industry. It provides excellent information about the benefits of index funds. The book’s clarity in answering queries and providing answers is what most strikes me about it. It’s normal to have doubts and questions when you’re reading a book. Answers to these can be found here in a matter of pages, in later chapters, and most definitely before the end of the book.

This book stands out for its unwavering commitment to the long-term, passive investing tenets. Bogle skillfully undermines the appeal of day trading and speculative short-term investing while praising long-term index investing. In addition to cutting costs and taxes, his support for investing in cheap, broad-market index funds that track the performance of the entire market provides the best chances for steady, market-beating gains over an extended period of time.

Chapters – Clarity in complex financial issues

This book stands out for its extraordinary clarity. Bogle cuts through the clutter with a directness that is both inspiring and informative, and his writing is refreshingly short. He makes complex financial ideas understandable to both novice and experienced investors.

Chapters – Importance of Discipline for Investment

The book also emphasises how important patience and discipline are. In support of the idea that successful investing is a marathon, Bogle exhorts investors to maintain their commitment, avoid responding hastily to short-term market swings, and give priority to their long-term objectives of building wealth and securing their financial future.