1 / 8

The online share market and its important features

Investmentz.com has a range of baskets in which you can invest. Each basket comprises stocks of up to 12 different companies covering different sectors, which you can buy every month.

Rahul_Patil_Investor
Download Presentation

The online share market and its important features

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The online share market and its important features in India

  2. Introduction • When we think of investments, the first thing that comes to our minds is the share market. Be it domestic or NRI investments, the online share market in India offers a huge platform for potential investors to conduct share transactions with the motive of generating or maximizing wealth. The buying and selling of shares usually take place during the fixed trading hours recognized by reputed stock exchange organizations like the National Stock Exchange or the Bombay Stock exchange. The investor invests according to the demand and volatility of a particular stock. • However, a lot depends on the investor’s ability to predict the profitability of a certain stock and if it at all shows any promise of lucrative returns after a long term. Since everyone can access the online share market nowadays, all you need to begin with the trading process is a Demat and trading account.

  3. The opportunities for investment in the financial market are truly diverse. With a variety of asset classes available, it is up to the investor to choose the most suitable and profitable option based on his income and financial goals.

  4. When it comes to asset classes, equity shares are one of the most popular choices. It primarily consists of vehicles like IPO, stocks, Equity Linked Savings Scheme (ELSS), mutual funds, etc. When you invest in equity, you immediately become a part-owner of the respective company. • This part ownership also entails certain voting rights within the company. Equity shares are extremely profitable but also equally volatile. Hence, you need the necessary skills to properly manoeuvre the risk factor in equity. Only after going through several thorough assessments of annual company performances should you invest your money into such holdings.

  5. On the other hand, you may be looking for ventures with much milder levels of risk. In this case, you may opt for investment tools like bonds, debentures, New Fund Offers (NFO), Certificates of Deposits, etc. which are all part of fixed income assets. Unlike equity, there is an element of certainty in fixed income asset classes. No matter which asset class you end up selecting, always remember that they should fulfil your long-term financial objectives. In this regard, they should have the potential to direct you towards your financial goals faster.

  6. Apart from the process of investing, there are a few other fundamental differences between fixed assets and equity shares. For instance, if you decide to invest in the latter, you will be rewarded with dividends which are basically a part of the company’s total profit amount. In fixed income classes, however, investments generate profit in the form of interests which the company pays you in exchange for the money you ‘lend out’ to them. • Of course, dividends tend to be much higher than interests, owing to the fact that it is directly derived from the company’s profit. There is also a chance of gaining bonus shares and stock dividends under equity in the event that a company decides to turn their profit reserve into capital stock. Hence, if you play your cards right, equity investments can lead you towards earning superlative returns in the online share market.

  7. The certificates issued under the online share market transactions get reflected in your Demat and trading account, thereby helping you to protect and keep a constant check on your investments. The net investment holding also gets modified according to the sequence of credits and debts that take place in your account.

  8. But before you start trading, make sure that you identify where your skills lie and if at all stock trading is your forte. Since different asset classes have different levels of risk, it ultimately depends on your risk profile and how you wish to allocate your money for maximum returns. If you want to be more balanced, you can also opt for a portfolio that will contain both equity and fixed assets. This will restrict any extreme amount of risk and also simultaneously generate impressive returns throughout your investment tenure.

More Related