Why are many people driven to invest in things other than themselves?

The immediate drawback that comes to mind is the inevitable volatility of the share market.

So why bother investing?1381892803_where-is-the-right-place-to-invest-your-money

The main reason though, is that this volatility actually provides for attractive dividends and growth rates. Rather than having a low fixed income, it is in a share market where there exists the potential for capital appreciation (a rise in the value of an asset based on a rise in market price).

Additionally, the overseas potential offers equity investors a varied and diverse pool of companies in which to invest- increasing the global scope. Moreover, since inflation can significantly reduce the value of cash savings held in banks, investors should consider other options and equities are a major option as share prices rise as many company profits grow at a faster rate than prices are increasing.


References: Investopedia & Telegraph