Why invest in stocks!

Out there are many ways where to invest your money. So why choose stocks? It's simple because socks are the best bet. Since its inception, the stock market has consistently delivered the best overall returns when compared with the returns of investments like real estate. Since the purpose of investing is to watch your money grow, the logical choice is to place your money where it has the best chance of doing that.

There are, however, several investing options that are attractive to investors like

# Bonds
# Cash
# Mutual funds

Let's compare all three of them with stocks

Stocks vs. Bonds

The big difference here is that you can make more money with stocks than bonds because in stock market there are no limit how large your investment may grow, no limit can likewise be placed on how small investment may shrink, that means if you want lower risk and more safety then bods will be your choice
In other words stocks have the potential to provide higher returns than bonds, however, bonds offer a higher degree of security for the principal amount invested

Bond vs. Cash

Cash, in financial terms, refers to any type of investment that is extremely liquid. A money market account, for example, is considered cash because the account holder can withdraw his or her money with relative ease, including drawing on the account with a personal check. Cash can also refer to the money in your checking and savings accounts or the money under your mattress.
The big problem with cash is that it makes no or very little profit. And in this case investing in stocks will almost definitely provide a higher return than allowing your money to remain in cash or investing it in a cash investment. However cash has a ddegree of liquidity not offered by stock.

Stocks vs Mutual Funds

Recently mutual funds have raised their popularity. In fact mutual funds are a good place for investment, but stocks are still better.

A mutual fund is a mass portfolio that has been collected by a mutual fund manager and is professionally managed for its owners or shareholders.

But this system has one black whole. Let's say that you want to invest your money in companies that are environment friendly, to find a mutual fund which is made from environment friendly companies is almost impossible due to diversification.

Stocks by default provide higher returns than mutual funds since management fees are not levied on stock owners. Mutual funds, however, offer a higher degree of diversification.

To make the list short

# Different investment options carry risks particular to them and may complicate comparison to stocks.

# Stocks provide the highest returns over cash investments but cash investments are most secure.

# Stocks historically provide higher returns than bonds but investment in bonds in more secure

# Stocks can provide higher returns than mutual funds but lack in their diversification

# As an investment's ability to produce higher gains grows, so, too, does the risk of loosing your money