During college, I did not ever dream of having an 8-to-5 job. I always thought there was another way to accumulate wealth faster than anyone else. I felt that I can do more. As I came across different books and online materials about successful people, I began to realize the importance of financial literacy. Also, I noticed that most of the richest personalities in the world have one thing in common—they are into the financial markets, particularly the stock market.

In the Philippines, investing in stocks has always been regarded as something that only the rich can do. While stock investing has been too sophisticated for newbies, modern financial technologies and tools are now available to provide you with relevant information that you can leverage to make winning investment decisions.

Are you interested in investing in the stock market, but are not yet fully convinced that this is a great idea? Here are five reasons to give it a go.

1. Investing in the stock market can give you good returns and stay ahead of inflation.

Compared to investing in government bonds or using traditional bank deposit where it is nearly impossible to have a visible return rate that will cover inflation, investing in stocks historically involves a better annual return rate than the average annual inflation rate. Furthermore, there are a lot of effective strategies in stock investing that could provide you with an acceptable risk/reward tradeoff.

2. You can invest even with little fund.

It is possible to invest in stocks and earn attractive returns even if you don’t have a huge amount to invest. You can use leverage to invest more in a particular instrument using borrowed funds. This is available in your margin accounts through your broker. If you don’t have sufficient funds to build a full-size stock portfolio, microfinance services can also help you buy a share of share.

3. Investing in the stock market is relatively simple.

For many years, complicated charts and trading platforms are only comprehensible for professional traders and brokers. However, nowadays, the usability of trading platforms became easier to understand for the average filipino and free educational materials and tutorials on stock market investing became more accessible online. Also, you can now gain access to trading signals and sell or buy a stock with just a few clicks on your computer or taps on your mobile device.

4. Investing in the stock market offers better transparency.

When you invest in hedge funds, you don’t really know what they are doing with your money. However, when you invest in the stock market on your own, you can monitor your progress and be in charge of all the crucial processes involved; thereby offering better transparency.

5. Investing in the stocks of a company can make you earn dividends on a regular basis.

Dividends are basically a distribution of the earnings of a company among its shareholders. There are many companies which offer dividend payments on a regular basis. You can easily search for those which have healthy dividend yields and attractive annual total returns for the past couple of years. Obtaining returns from this dividend strategy could be an effective, yet non time-consuming way to earn in the stock market.

Final Thoughts

We have just discussed five of the best reasons to invest in the stock market. In the Philippines, you can already open an account for as low as PhP 5,000 with www.colfinancial.com and start investing in the stock market.  Have you been wanting to try out your hand at the stock market?  Make your money work for you!!  Don’t delay, the best time to start is now!

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