Why invest in stocks?

We need to invest in stocks because we want our money to earn good returns; returns that help us beat inflation and create wealth in the long run.

By investing in stocks, we want to protect our hard earned money & get returns! One can earn extraordinary returns too by speculating, but this involves higher risks of losing money. Hence, we say good returns, & not extraordinary returns.

ASSET CLASS	Returns in
	10 Years	5 Years
Stock Investment	20.0%	22.5%
Fixed Deposit	7.0%	6.5%
Bond Yield	8.9%	7.5%
Inflation	5.0%	5.8%

Figures as of July 2008; Database - Bloomberg

The table above clearly indicates that the returns are much higher with Stock Investment in comparison to Fixed Deposits or Bonds and much higher than inflation.

However, investing in stocks carries some risk. The biggest risk comes from being ignorant. Investing does not require a great IQ but not having a framework for investing & trusting others without knowledge will certainly expose you to risk that you cannot afford.

Warren Buffet, one of the world's richest men and most successful investor; has very well described this, as- "To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information."

As, India is a growing economy, investing in stocks is a great way to ensure you benefit from it. And MoneyWorks4me.com enables you to take charge of your investments, take the gamble out of stock investing and earn good returns.