Investment and risk management in equities
Investment and risk management in equities why I choose this content because it is an important thing has to know who want to invest in the stock market, so I thought I have to share some piece of knowledge with you about it. Most beginner investors have some doubts about equity investments and also the risks, first of all, you have to understand one thing that is if you are not ready to take any action in your investment that is the biggest risk, because if you want to invest in equities? Then here you need some period of time, equities are not short term money-making machine, you have to be a patient here, you can take an example a great investor warren buffert he was started his investment at 11 years old then but he becomes a millionaire at the age of 32, so here you can understand one thing is patience, patience is only one thing you have to learn from the stock market, but most of the peoples don’t have patience, let say the peoples are expecting overnight success, first of all, you have to understand one thing that is stock market not magical so if you enter into the market as an investor? then you have to be patient. If you want to improve your patience level? then you must improve your financial knowledge, this is the only way to succeed here, so try to improve your financial knowledge through the books and also through the free courses, elearnmarkets provides a free course, I will share the link at the end of this blog you can use it for improving your financial knowledge.
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What are the things
have to consider before going to invest in equities?
What are the things have to consider before going to
invest in equities this is important one thing have to know every beginner
investor in the stock market most of the peoples are don’t try to consider
these things this is the major drawback of these kinds of peoples so try to be
an aggressive investor try to know all the basic things in the stock market?
here you need to improve your Financial knowledge this is the only way to
succeed here. try to spend our valuable time on valuable things, if you are a
full-time employee? Then try to find some evening time for reading at all.
Asset classification
Asset classification is
the most important one thing most of the peoples are making more mistakes here,
so as an investor you have to know where you have to invest, which asset class
will grow your investing amount. most art students are studying financial
management subject but they considering as the subject, this is also one of the
major mistakes has done most of the students. If you are studying any subject
in your course you have to apply that in your life, you have to think
different compare to others. The asset class is one of the major part of investing
which will give you some economic inflow so you can choose equities, bonds,
real estate, gold, commodities etc.
Bank F.D or equity?
Bank F.D or equity?
This is one of the major doubts of most beginner investors, here you have to
understand one thing that is inflation because bank F.D interests almost 6% at
the same the inflation rate is around 6% but in the equity, you will get 9- 10%
depends on market condition. And also, the tax will be deducted from your bank
f.d returns but in equities, you don’t want to pay the tax after one year. So you
have to decide bank F.D or equities, or bonds.
Risks involve in
equities
Equities have
advantages and disadvantages also so you have to consider both things, but you
can avoid the maximum chance of loss by using your intelligence or by using
your investing strategy. Before going to invest in companies you have to do the
fundamental analysis, this is one of the major important things have to know for every beginner investor, here you have to consider a company's past and present
performance you have to the swot analysis your chosen company. Before going to
invest in the share market, you must consider the economic condition this is
also a part of the fundamental analysis, so when you do gambling in the
share market that is the biggest risk you have to understand that first.
Summary
Investment and risk
management in equities if you wants to know how to manage your risk from your
investing? then you have to improve your financial knowledge day by day, and
you have to consider some important things before going to invest to share
market like - Asset classification, investment decision, risks in equities etc.
so I have to say with you one thing that is – before investing into the share
market, try to invest your valuable time for improving your financial knowledge
and don’t take bad advice from failed peoples in the stock market.
I hope this content was
useful.
How to Invest in Shares with Only Rs 5000 Learn to invest in the stock market with just Rs 5000 by understanding the basic terminologies, trading platform, and selecting the right brokerage.
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