Investing in Stock Markets

Investing your money for future or for a short period now a days is what every youth think of. But what maximum people in India suggest are the traditional and risk free ways to invest, that is our Fixed Deposits, Real Estate, PPF, etc. But now there are many other ways of investing, where if you have proper knowledge guidance you get good returns, better than traditional ways of investing. One suck way is investing in Stock Market.

Stock Market is all about Equity Shares, Preference Shares, Debentures, and Mutual Funds and so on. Above mentioned are the mains where even a new investor can also start through. Before trading or investing in Stock Market one should remember to get proper knowledge about it and invest according to proper norms and rules that one needs to follow, created by SEBI (Securities Exchange Board Of India). Today we’ll see why one should invest in Stock Markets. Below are some points I came across-

• Beats Inflation: Prices of stocks depend on the market buyers and sellers, where the rates of interest on debentures depend on company profits and so does dividend paid.
• Diversification: Stocks of companies purchased can be of different sector altogether which in turn helps in optimizing allocation of assets properly and divides risk accordingly.
• Partnering in the Nation’s Prosperity: India being one of the emerging markets, stocks that exist here has a good growth in future for investors who would like to invest and opportunity to be a part of India’s Growth Story.
• Well Regulated and Transparent Framework: Regulated by SEBI, it keeps a proper check on companies that register to be issued under BSE or NSE markets.
• There is an opportunity to invest in any company globally.

Thank You

 Regards

Nidhi Malde

IBS Mumbai