Is investing in the Stock Market the Right Thing to do for the Middle Classes?

By 10paisa.com

This is a bit of an odd question. It is like asking, whether the middle classes have the right to create enough wealth to live a comfortable life.  A contrarian would then counter question-do the middle classes have the right to face financial ruin? As somebody who has seen the stock market both create wealth and cause ruination in the lives of investors from both the middle classes and the moneyed ones, I would say that the question is not the right one to ask.
Anyone who invests in the stock market needs to study it well and exercise due caution before investing in it. This is especially true, in light of the fact that there are other competing investment options like mutual funds, property, investing in a business, lending money and so on.
One’s decision to invest in the stock market, or anywhere else depends upon one’s desire for a certain return on investment and the willingness to accept the risks associated with it. It has nothing to do with whether one is a middle class college professor, the scion of a business family or an actor.
If investing in the stock market can help a middle class person create much desired wealth for oneself on account of his or her excellent understanding of the dynamics of the stock market or as is more likely, because of the fine professional investment advice one is getting, they should surely go ahead and do it.  Besides, investing in the stock market might provide certain advantages they may not obtain elsewhere.
The Returns Can Be Really Good
Investing in stocks, if done right can be the means to earn extremely lucrative returns by the middle classes, helping them fulfil many of their deepest aspirations. Of course. investing in shares carries risks, but then when did anyone obtain anything substantial without an element of risk in it?
Stocks Provide Instant Liquidity
One can cash in on stocks at will, unlike other forms of investment that may be difficult to dispose of.  This can be a life saver in crunch situations, when one needs money. This could be for emergency medical expenses or to fund the education of one’s children.
Stocks Provide a Dual Source of Income
Stock investment yields regular returns in the form of dividend if declared by the company in question as well as the sale of shares at an appreciated price. That again makes them an attractive investment option for middle class investors.
Stocks Can Come to Your Rescue in Tough Situations
This is not only on account of the fact that you can sell your stocks anytime to raise the required money, but also that you can borrow against them. So even if your cash reserves are very low, you have something to bank upon.
It is really nobody’s case that stock market investment is best left to the super rich and the leading industrialists. If that were the case then a number of veteran investors, who hail from middle class families, would not have become the billionaire investors that they are.