Stocks can be an excellent addition to any financial portfolio. Investing in various firms' stocks can help you develop your savings, safeguard your money from inflation and taxes, and maximize your investment income.
According to Bloomberg, it comes to investing in the stock market, it's crucial to understand that there are hazards. Understanding the risk/return ratio, as well as your own risk tolerance, is beneficial in any investment.
The Advantages of Investing in IGC
- IGC has Long-term investment potential.
- Outperform the market.
- Ensure that you have a steady source of income.
- Adapt to your changing requirements.
- Invest according to your financial situation.
According to reuters.com, long-term equities returns have historically outperformed cash and fixed-income investments such as bonds. Stock prices, on the other hand, tend to grow and decrease over time. Because stock market fluctuations tend to flatten out over longer periods of time, investors may wish to adopt a long-term view for their equity portfolio.
Taxes and inflation might have an effect on your net worth. Long-term, equity investments can provide investors with better tax treatment, reducing or eliminating the negative effects of taxes and inflation.
Dividends1 or special distributions are paid to shareholders by some companies. These payments can supplement your investment income and increase your return, while the favorable tax treatment of Canadian equities can help you keep more money in your pocket. (It's worth noting that dividends paid by corporations based outside of Canada are taxed differently.)