Last Updated on May 25, 2022 by Neera Bhardwaj

Are you finding it difficult to speak to your partner about investments? If your answer is yes, you’re in the right place. Here’s what you could do, begin by making them understand the primary objective of investing – to meet their future financial goals. Investing in stocks is not the only option as there are others like Systematic Investment Plan (SIP), mutual funds and ETFs. All of which can help in accumulating corpus over time. 

Having said that, make sure they realise that they can enjoy the benefits only if they’ve done their homework and researched beforehand. And if they don’t want to do it themselves, there are financial advisors to help them in this process. 

Anyway, this article speaks of some pointers you can use on your dating partners and convince them to get married to the idea of investing. Without further ado, let’s get to it.


Invest with smaller amounts

Start by making them understand that investment doesn’t always have to be massive. Your partner can start investing in the stock market by putting in small amounts. There are small-cap and mid-cap companies in which they can invest by purchasing smaller units. 

To top that, an added advantage of directly investing in stocks is that they can buy them as per their choice. Inform them to check back in the future and see how that small amount invested has grown in time. But one thing you need to imbibe in them is to thoroughly research a company and its performance before they invest in it. 

Benefit of liquidity

Investing in stocks has another advantage, which is the benefit of liquidating them. Stocks are considered liquid assets because they can readily be exchanged for cash. They also have a high number of buyers at any given moment. Unlike assets like real estate, which are difficult to sell, the same is not the case with stocks. 

Educate them on the workings of liquidity. If the average volume of transactions is high, it means there are multiple buyers and sellers for that particular stock. And one of the essential advantages of the stock market is its liquidity because this process never ends. 

Power of compounding

Now, you bring out the powerful tool, which is the power of compounding! Firstly, if your dating partner is not aware then sit them down and make them understand what compounding is – the process where interest is credited to an existing principal amount as well as interest that has previously been paid. This refers to their total profit from capital gains and dividends in stock investment. If they start investing early, they will reap the fruit of compounding. The longer they leave their money without disturbing it, the more it grows with the help of compounding.

To make it easy for you to convince, give them this example – If they invest Rs. 1 lakh at a 10% compounding rate, their future investment value will be about Rs. 2.70 lakh in 10 yrs. And the same amount left uninterrupted will become Rs. 7.32 lakh in 20 yrs! This is the power of compounding. 

Benefits of dividend

Here’s another benefit of investing you can use to convince them. It’s the dividend your partner gets from the companies. A dividend is a source of additional income for investors that some companies payout once a year. Not only is there a possibility of them earning profits from their investments, but they also have the added benefit of getting extra through dividends! 


Versatility 

Speaking of versatility, advise them that the stock market offers a variety of financial instruments. These include stocks, mutual funds, bonds, and derivatives. It gives them a diverse range of options for investing their money. So, they have the liberty to choose where they want to invest.

Also, if they haven’t heard of this before, enlighten them that there’s an advantage of profiting from this flexibility because it allows them to diversify their investment portfolios. Diversification can either be done with stocks from different sectors or with different financial instruments. This act, in turn, reduces the risks associated with investing.

Conclusion

In closing, help your partner in making a list of their financial resolutions. And include investment in it as well! Not going to lie, there are risks associated with investments, but what is life without a little bit of a risk? Just like Harshad Mehta spoke in Scam 1992, “risk hai toh ishq hai”. 

Anyway, now that you have your points ready to convince your partner, speak to them and help them to start their investment journey from now. However, if they feel lost and unsure as to where to start from, we’ve got you covered. Use tickertape as your tool! It’s never too late to start something new, so before anyone else tells them otherwise, nudge them that this is their sign to begin investing. Now go on, push them to check out tickertape and take their first step!

Manonmayi
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55,00,000+ users trust Tickertape for Investment Analysis!
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