Know The Market (Session-1)

Basics of Stock market investing-



  • Stock market investing is very popular or interesting for many years. Basically there is a bull-run people are more interested about stock marketing. But it is not like as normal people think. It is just like a unpredictable thing. Ex- you can make lot of  money and at the end you loss lots of money.
  • you can play the game very carefully unless until you know the market very well but you always try to know the market. Because market is everything for you.
  • There is a number of investing strategies like bank FD, mutual fund's, Gold, PPF, Real-estate but why you need to invest in stock? Here we discuss some of the points why we need to know about stocks.

Q- Why to invest in Shares?
Ans- 
  • The outperformed of every other asset class in long run it is more profitable as compare as compare to other investments.
  • Best Hedge to inflation.(i.e. atleast you ensure that your investment is at secure place at any time you get the money in liquidity as compare to other investments.)
  • Returns range between 15% to 25% annually.(Sometime it is possible to get higher return of your investment if market is good. It is sometime not every time.)
  • It has the tax advantage in India.(You can get the tax saving policy under this process.)
  • India considered as an Emerging market. It gives the lot of opportunity to equity investors to invest in shares.
Benefits of investing in Shares-

Return from investments in shares come in two forms
  • Capital appreciation
  • Dividend


Capital Appreciation : 
  • This takes place when there is an increase in the price of the shares over a period of time.
  • Eg- If you buy 1 share of SpLearn ltd. for Rs-1000/- and after one year its price is Rs-1500/-, there is a capital appreciation of Rs-500/-. This is referred as capital appreciation.
  • In India long term capital gains i.e. where investments are made for a period exceeding 12 months is not taxable.

Dividend : Most companies pay periodic dividends. An investor in entitled to receive dividend from the company.
  • When you hold the shares of a company in a periodic interval of time and when the company declare the dividend then you have get the dividend.
  • It is usually expressed as a percentage of the face value of the shares or in rupees per share.
  • You need small amount of investment to start investing. It can be as small as Rs- 1000/-.
  • Dividends are tax free and long term capital is exempt from tax.
Best Asset Class-
  • Compared to any other asset class equity has proved that it is the best mode for investment, wherein returns have been in the range of 15% over the past 10 years.
  • This is much higher than any other asset class if stay invested for a reasonably long period of time.
  • Probably the only asset class that has the potential to beat the inflation.
Liquidity refers to quickness with which one can convert an asset into cash. When you want to convert your shares into money you can do it quickly, it can be loss or profitable is the secondary thing but you can convert the shares into cash very easily as compare to other asset.
  • The shares of the company which are listed on the stock exchanges, actively traded can be liquidated any time.
  • Liquidity ensures safety of capital because it enables you to convert shares into cash at the slightest fear or hint of a capital loss.
  • When you feel that your investment is in wrong place or investment is in danger then you can easily liquidate.

---Thank You---

1. Know The Market - Session-1
2. Know The Market - Session-2
3. Know The Market - Session-3
4. Know The Market-  Session-4
5. Know The Market-  Session-5
6. Know The Market-  Session-6
7. Know The Market-  Session-7
8. Know The Market-  Session-8

Comments

Post a Comment

Popular posts from this blog

Communication Skills

What is C# ?

Know The Market(Session-11)