The stock market is an excellent opportunity for investors to gradually increase their money. The stock market can offer considerable returns and help individuals in reaching their financial objectives with the appropriate strategy. ITC Limited, a well-known Indian conglomerate with operations in a several industries including FMCG, hotels, and cigarettes, is one business worth taking into consideration for investment. The ITC share price in September 2021 was about INR 200.
ITC shares and other stock investments can be wise choices for the following reasons:
- Potential for significant returns: Over the long run, investing in the stock market may offer considerable profits. In the past, stocks have outperformed the majority of other asset classes, such as bonds and gold. Investing in reputable businesses with sound fundamentals and long-term growth prospects might boost the likelihood of success even though there is no assurance of returns.
- Diversification: Investors can diversify their portfolios across multiple sectors and industries by investing in the stock market. This serves as a risk-reduction measure and a buffer against economic downturns. ITC is a multi-sector conglomerate with a diverse business model, making it a solid investment choice for anyone wishing to diversify their holdings.
- Passive Income: Dividends from stock market assets are another source of passive income. Many businesses, including ITC, give shareholders a percentage of their profits in the form of dividends. For retirees and anyone seeking passive income sources, this can be a reliable source of income.
- Liquidity: Since the stock market is quite liquid, investors can easily and swiftly acquire and sell their shares. This gives investors the freedom to modify their portfolios as necessary and seize market opportunities.
- Inflation protection: Investments in the stock market may offer protection from inflation. As the value of money decreases over time due to inflation, investing in equities can provide a hedge against the erosion of purchasing power.
Investing in the stock market, especially purchasing ITC shares, can result in large profits and assist investors in reaching their financial objectives. However, it’s crucial to keep in mind that investments made on the stock market are subject to market volatility. Before making any investment decisions, investors should do their homework and consult with a financial counselor. Leading online stockbroker 5paisa provides a selection of investment options as well as research insights to assist investors in making knowledgeable financial selections. The platform and research team at 5paisa can assist you in navigating the stock market and making profitable investments, whether you are a beginner or an experienced investor.