• Setup menu at Appearance » Menus and assign menu to Top Bar Navigation
Tuesday, July 5, 2022
Business System Guide
Advertisement
  • Retail
  • Wealth
  • Cryptocurrency
  • HealthCare
No Result
View All Result
Business System Guide
  • Retail
  • Wealth
  • Cryptocurrency
  • HealthCare
No Result
View All Result
Business System Guide
No Result
View All Result
Home Business

Is It Wise To Take A Personal Loan To Invest In Stock Market?

by Nala Samir
2 years ago
in Business
0
Is It Wise To Take A Personal Loan To Invest In Stock Market?
154
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Planning to make your debut in stock market investment but don’t yet have sufficient funds for it? If you’re considering taking a personal loan to finance your investment, think twice because experts say it is not for the faint-hearted. It is highly advisable to take these loans only when you have necessary big purchases or cost-intensive plans like international trips.

Here’s why taking a personal loan for stock market investment is not the safest decision:

  • Personal loan interest rates are usually more or less between 15-18%. If you apply for a loan to invest in the stock market, this means you will need a solid return of more than 15% to make a profit on that investment.
  • Getting such returns every year for a significant period can be hard given the volatility of the market.
  • Experts say that it can be extremely risky to invest in the stock market for the short term as investments need time to gain momentum and increase in value.

As much as the stock market is for investors with a very higher risk appetite, the returns are observed to be so attractive that they often convince people to go all out. And if you have made up your mind on taking a loan for investing in the stock market, consider the following pointers.

Consider the interest rate

  • The process of availing a loan to invest in shares is known as gearing or leveraging.
  • Investing in the stock market is burdened with risks and you should only opt for it when you have a considerable risk appetite, enough funds to cover a loss, and an extensive knowledge of stock markets.
  • Increase your credibility by paying off your bills, clearing the credit card dues, and eliminating any old debts. This will improve your eligibility.
  • Improved personal loan eligibility and a good credit score can significantly lower the interest rates.
  • In case you have taken a loan with a highinterest rate, it means you will have to shell out considerably more in terms of EMIs. This can damage your monthly budget.
  • Calculate all your fixed monthly expenses and then accommodate the EMIs to see if the math checks out.

Learn all about investing

  • Jumping into the investment pool without knowing about it can drown you into debt.
  • You must read up and research on how the markets work before investing.
  • Investing in the equity market is all about knowing how and why a stock is performing, this knowledge can assist you in predicting future trends in the market.
  • While eyeing a specific stock in the market and considering borrowing for investing in it, make sure you know everything that is to know about the stock.
  • You could lose money if you’re not cautious and if you know the game well enough, you might just win it.

Taking out a loan to invest in the stock market is not an idea that you can just reject. If you are careful with your investment, have done your homework, accommodated the financial risks in your current budget, then opting for a personal loan for stock market investment can be fruitful. With reasonable interest rates, your loan can give you a good amount to invest and you can create a diverse portfolio for yourself.

Related Posts

The Role of Text Analysis in Research
Business

The Role of Text Analysis in Research

June 30, 2022
How Much Is the Cost of Direct Deposit Payroll?
Business

How Much Is the Cost of Direct Deposit Payroll?

June 30, 2022
Hard Money Loans 101- Everything You Need to Know
Business

Hard Money Loans 101- Everything You Need to Know

June 29, 2022
Business

6 Rules Of Success For New Businesses

June 29, 2022
Interior Design Advice For Reopening Your Office
Business

Interior Design Advice For Reopening Your Office

June 24, 2022
Three ways to reduce the company’s TCO 
Business

Three ways to reduce the company’s TCO 

June 30, 2022

Recent Posts

  • The Role of Text Analysis in Research June 30, 2022
  • How Much Is the Cost of Direct Deposit Payroll? June 30, 2022
  • Hard Money Loans 101- Everything You Need to Know June 29, 2022
  • 6 Rules Of Success For New Businesses June 29, 2022
  • Interior Design Advice For Reopening Your Office June 24, 2022
  • Using CMMS Technology to Bridge Workforce Gaps June 23, 2022
  • Three ways to reduce the company’s TCO  June 23, 2022
  • HR Issues in Outsourcing June 23, 2022
No Result
View All Result

2022

  • + June (18)
  • + May (8)
  • + April (16)
  • + March (32)
  • + February (14)
  • + January (23)

2021

  • + December (13)
  • + November (17)
  • + October (12)
  • + September (17)
  • + August (16)
  • + July (23)
  • + June (32)
  • + May (18)
  • + April (18)
  • + March (17)
  • + February (22)
  • + January (17)

2020

  • + December (22)
  • + November (19)
  • + October (20)
  • + September (31)
  • + August (26)
  • + July (20)
  • + June (25)
  • + May (15)
  • + April (18)
  • + March (21)
  • + February (23)
  • + January (24)

2019

  • + December (2)
  • + November (24)
  • + October (3)
  • + September (2)
  • + August (2)
  • + July (4)
  • + June (2)
  • + April (1)
  • + March (1)

2017

  • + March (1)

Tags

Amazon Keywords Champions Academy coding classes Competitor Analysis cost-effective development company Development Team Building Ecommerce hiring an extended development team IHC IQIP noise mitigation printer toner from Toner Bee Short film competition short film contest platforms South Point Casino

Recent Posts

  • The Role of Text Analysis in Research
  • How Much Is the Cost of Direct Deposit Payroll?
  • Hard Money Loans 101- Everything You Need to Know
  • 6 Rules Of Success For New Businesses
  • Interior Design Advice For Reopening Your Office
July 2022
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Jun    

Site Navigation

  • Home
  • Business
  • Companies
  • Economic
  • Management
  • Marketing
  • Partnerships
  • Services
No Result
View All Result
Business

The Role of Text Analysis in Research

There are many types of text analysis. These techniques include a thematic summary, interaction analysis, and automated textual analysis. This article ...

June 30, 2022
Business

How Much Is the Cost of Direct Deposit Payroll?

If you're thinking about setting up direct deposit payroll, you may wonder how much it costs. Most banks charge a ...

June 30, 2022
Business

Hard Money Loans 101- Everything You Need to Know

If your first thought was "scam," you're unfortunately not alone. Nowadays, getting financing for a real estate deal can be ...

June 29, 2022
Business

6 Rules Of Success For New Businesses

There is often a great deal of excitement within the operation of new businesses. Those at the helm are likely ...

June 29, 2022
Business

Interior Design Advice For Reopening Your Office

We have consulted interior designers at Buster + Punch to give you the best expert advice possible on transforming your ...

June 24, 2022
  • Retail
  • Wealth
  • Cryptocurrency
  • HealthCare

© 2020 Business System Guide. All Rights Reserved.

No Result
View All Result

© 2020 Business System Guide. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In