Is it the right time to invest in stock market instead of banks when the rate of interest is really good?

Question

Is it the right time to invest in stock market instead of banks when the rate of interest is really good?
is it the right time to invest in stock market instead of banks when the rate of interest is really good like 9%..

secondly would you call it a wise invetsmnt to shift from a fixed return scheme to stock market..?

Answer 1

That is up to you, the level of risk you are willing to tolerate, and how old/close to retirement you are. Bear in mind, the stock market can fluctuate WILDLY. Yes, the anual interest rates average about 9%, but some years you will lose money. For example, the dow and s&p are only now returning to their 2000 levels, some 6-7 years later.



A good rule to always follow is to have at LEAST 3 and preferably 6 months worth of ALL living expenses on hand (in a bank) at all times.



Before you invest in the stock market, thorough research is required. Beware of brokers, as they gain their living off of commission, meaning they may offer advice that isn't completely in your best interest. I have been investing in the market for about 6 months now, do it online through one of the online brokerages, and have been VERY pleased.



Only you can answer the question you posed for yourself, but if you decide to invest, research, research, research, or you stand a very good chance of losing, rather than making money.

Answer 2

For investing in Stock market all time is right time if and only if u r informed investor. In banks no risk 9% return in Market High risk and can be 9% return in an Hr.



Source

http://finance.tipz.in

Answer 3

Well, investing in the stock market can be very good, and very bad. It can be very good because you can make much more money that way, but bad because you can also lose a lot of money that way. If I were you, I would contact a financial adviser and ask them to give you some advice, since this probably isn't the best place to get advice on money investment.

Answer 4

Even bank give low interest it is more secure. For stock market risk is so high. so you calculate risk and invest a part in bank and other part in stock market. Entire investment in stock market is not advisible.