What is Equity Market and How do one start investing in the Indian stock market?
An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and firms in anticipation of income from dividends and capital gains, as the value of the stock rises.
One has taken a smart decision to invest in Equity, popularly called as shares. Indian GDP is growing at 6%-7% per annum and as thumb-rule equities deliver return which is equal to GDP growth + Inflation. Equities are best asset class for investing to beat inflation.
Welcome to a new world of Shares. Investing in equities is considered risky because it is subjected to market fluctuations, but if invested prudently and wisely, equities are relatively best options to invest, because of the high returns it offers to the investor.
Investing in equities is easy done than said. SEBI, a regulator of financial services industry, has already simplified the process. However, most of us are unaware of this process of investing in equities. We have tried out detail out the process in a simple manner which can guide a layman investor to start investing in Mutual funds-
Risk profile depends on following two factors:
Generally higher the age and financial obligations lower the risk profile. However, one can learn risk profiling through various free online tools. Knowing the risk profile helps in knowing the products one should not invest in.
The below helps to understand the basic categories of profiles and meaning-
It takes a lot of time to learn about investing. Instead, one can follow Market Guru’s who are long-term investors and propagate long-term investing rather than speculation.
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