Four good reasons why you should invest in shares

Julie Brownlee, Fsp Invest, 29 Oct. 2015

Tags: shares, invest in shares, investing, investing in shares, why invest in shares, reasons to invest,

Investing in shares may be something you want to try, but you haven’t got round to actually committing to.

The chance of losing money on the stock market can put many people off, but there are very good reasons why you should consider investing in shares…

Reason to invest in shares #1: Make money

This is probably the primary reason which drives most investors to invest in shares. By taking the risk of putting your money to work on the stock market, you have the chance of making money.

You can reduce the risks of investing in shares by doing a number of things. For example, investing in solid companies that have a good track record and by managing your risk by using strategies such as stop losses.

Instead of investing in individual shares, you can remove this company-specific risk by investing in exchange traded funds (ETFs) or unit trusts that track the performance of an index.

Reason to invest in shares #2: Create an income

By investing in companies that pay dividends, you can also secure an income from your investments.

If you’re looking to invest in these sorts of shares, you want to stick to the best quality companies that have a record of increasing their dividend payments over time.

Again, you don’t have to pick individual shares for this. You could invest in ETFs and unit trusts that focus on dividends.

Reason to invest in shares #3: Add to your retirement pot

By investing in shares for the long-term, you can also grow your invested money for retirement. This gives you an additional source of income or capital when you reach retirement.

Reason to invest in shares #4: A new interest

Once you start investing in shares, you’ll find it hard not to read the financial press on a daily basis and check how your shares are performing.

Many people enjoy investing on the stock market, watching its ups and downs.

So there you have it. Four good reasons why you should invest in shares.

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