Stock Broking
Features of Investing in equity
An investor who buys a particular company's stock essentially means getting an ownership stake in that specific company. Thus, it will give the investors a feeling of ownership after purchasing stocks. Having ownership means that they will become shareholders and play a vital role in a company's decision. Investors will also have the power to vote in decisions taken by the company.
Diversification:Investors who put their hard-earned money into multiple types of investment, a stock market investment delivers a major advantage by providing diversification.
Dividend Benefits:A dividend refers to a reward which the company gives to its investors. In simple words, it is an additional income of the company for investors that is paid yearly by every company.
Investment Gains:One of the major benefits of investing in the stock market is that investors get the chance to earn more returns. Over time, if the stock market rises in value, the prices of a particular stock can rise or fall.
Liquidity:Stocks are generally known as liquid assets because they can be easily converted to cash that consists of several buyers at any given point in time. However, when compared to other assets, it’s more difficult to look for a buyer for some assets like property.
They are well protected by SEBI:The stock market of India is regulated by the Security Exchange Board of India (SEBI). Security Exchange Board of India (SEBI) is majorly responsible for regulating the stock exchanges, their developments and mainly protecting the rights of all the investors.
Flexibility to Invest in Smaller Amounts:An investor is looking to enter the stock market can start their small investments in the stock market by purchasing stocks of small-cap or mid-cap companies but in smaller units.
It Allows You to Take Advantage of the Growing Economy:Corporate earnings usually tend to increase as there is growth in an economy. This is usually due to several factors like increased job creation, leading to an increase in income and sales.
Easy Process of Buying and Selling:The process of buying and selling in the stock market is simple and easy for all investors. Buying of stocks is done with the help of a broker, financial planner, or online mode.
The following guidelines offered by us, ensures to take care of the risk factor involved:
- It is always good to diversify across 10 to 20 major economic/industry sectors
- Allocate equal amounts to each sector
- Review portfolio at least once in three months, consult professionals for the same
- Identify your objectives in congruence to needs, life stages and resources
- Stay abreast with company's performance by evaluating ROE (Return on equity)