When you invest in a company, you get the shares in return that are known as the “Equity”. And you, as an investor, ultimately become the partial owner of the company by purchasing the equities of the company. In simple terms, in the long run, you are eligible to receive the amount of money that you invested with the addition of current Market Price if any.
Furthermore, you are also eligible for the right to vote in the company you have invested in. Equity Investment in India captivates a lot of people, the reason being it provides a high value of returns.
Tip:- When you tend to invest in an equity share, it is highly recommended to initially research the equity stocks.
Investing in the Equity Stock does not guarantee you with the fixed returns. The consequences rely on the Share Market status in India or the underlying asset performance. The investments in Equity is broadly categorized as below:-
Traded through the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE), the Shares are the equities you tend to receive when invested in a company by tagging yourself as a partial owner. However, the potential returns that you think of obtaining from the shares can also simultaneously bring along a lot of risks.
Note:- You need to check for the shares before investing, whether they are listed on BSE & NSE or no.
Mutual Funds are the investments wherein capital from variant investors is collected and invested in further debts and equity instruments. Although, with 60% of the total asset, the Equity Mutual Funds are invested in other various companies.
The Equity Shares are further bifurcated in the below sections with the calculation on the Market Capitalization of the company.
These funds are well-established in the large-cap companies with the potential to deliver its investors with stable returns at low risk.
Ideal with the balanced tag for risk & reward, these funds are appreciated in the mid-cap companies that are capable of allowing its investors to make the most of them.
Compared to the other categories of diversified funds, these mutual funds are the perfect investments for small market capitalization.
Portrays you with liberalized investments in various sectors & Market Capitalisation. It covers Equity Futures, Equity Options, and Arbitrage Schemes.
The companies initially issuing its shares or IPO (Initial Public Offer) to the people before listing on the exchanges, are considered as Primary Shares that are dealt with in the Primary Share Market Investments. As the company is listed on the Stock Exchanges, the shares turn out to be tagged as Secondary Shares also traded in the Secondary Market. Besides, one can also opt for the Private Shares that a company offers however, the same is still private and not listed over the Exchanges. Hence to trade in any of the either Stock Markets or Stock Exchanges, an investor needs to have a Demat Account & Trading Account, and here at Lakshmishree Investment & Securities, both are offered with minimal cost and ultimate service.
As an equity shareholder of any company, you have the right to attend the company meetings and put forth your opinions concerning the company executive decisions. But being not able to attend every meeting organised by the company, the activities are then further carried by the Board Of Directors that are ultimately elected by the shareholders.
Owning company equity shares will let you acquire the returns that are credited post dividend is paid to the Preference Shareholders. Furthermore, if, unfortunately, the company is out of profits, then the Equity Shareholders might not be able to earn any. In simple terms, if the company manages to yield more profits, the shareholders are the most benefited ones. And if the company is in loss, the shareholders get to face the loss on investments.
Shareholders being the company's real owners get to discount the benefit of limited liability. More in simple terms, when the company turns out to liquidation, the loss incurred by the shareholders limits up to the capital that they have invested.
The company’s each equity shareholder has the right to claim on the company’s assets. But at the time of liquidation, the preference shareholders stand before equity shareholders to credit their claims.
No doubt investing in Equity Shares will surely lead you to satisfaction returns carrying a lot of benefits along...
The earnings for shareholders are not just straight up to earning dividends, but it comes with the addition of Capital Appreciation too.
Investing in Equity Shares will let you earn potentially higher returns, further permitting hedge against inflation.
Hire the best Stock Broker in India or an expert Financial Planner that can guide you for better investments to invest through various Stock Exchanges in the country. With the immediate access of the Demat & Trading Account, you can transact your trades irrespective of the Stock Exchange.
Debts may not lead you towards higher returns. Therefore, investing in equity shares in India will let you diversify your portfolio by broadening the gates of returns.
Implied with the rule of nature, every single thing has drawbacks. The same goes for investing in Equities. Here are some...
Equities can undoubtedly offer you higher returns, but at the same time, it can also risk your investments in Equity Shares.
The investments in Equities based on the market might sometimes not reach up to the expectations of the investors and impact the Stocks fall.
Regardless of the reason, be it the risk that arises from Social or Political changes, if the company is unable to manage the debt, then the same is bound to meet liquidity. And here, the investors might not even be able to recover the capital invested.
Based on the Market, if the inflation is in the plus points, however, it is also on the unfavorable pages of investing in equities. The rising inflation may consequently downgrade your shares by not generating any further profits.
-- Equity is basically the shares of the company which are either already listed or are about to be list on the Trading Stock Exchanges. One can deal in the buying and selling of the stocks through Primary Markets i.e. IPO (Initial Public Offer) or Secondary Markets. The Equities are prominently considered one of the best long-term investment options as the market volatility, and the resultant risk of losses are mitigated by the general upward momentum of the economy in the long run.
-- Shares define the portion of investments an investor has made in a particular company at a given price. The holders of such shares are members of the company and have voting rights too.
-- The nominal or stated amount (in Rs.) assigned to a security by the issuer. We can see the original cost of the shares on the certificate. Basically, the face value for an equity share is a minimal amount (Rs. 5, Rs. 10) and is a small contributor to the price of shares, that may quote higher in the markets, at Rs. 100 or Rs. 1000 or other prices.
-- The full form of IPO is Initial Public Offer.
-- Attributed as Initial Public Offer, the IPOs are the first-hand shares of an unlisted company that makes either a fresh issue of securities or offer its existing shares or subsequently issues both to the public for the first time.
-- Periodic payments to shareholders made out of the company's profits are termed as dividends. The company decides the amount in a board meeting based on the performance and surplus.
-- Saving is a way to invest. Investing is what you do with savings you have planned if you are looking to generate a return on your money that is greater than what is already available to you through your savings instruments.
-- There is no such thing as a 100% safe saving scheme or investment scheme. If anybody tells you different, do not believe them! Not even government-backed bonds are 100% secure. For that matter, ask anybody who had money invested in various Latin American debt instruments in the 1970s and 1980s. Even governments can go out of business!
-- The answer to this question is a definite yes. It has been seen that over the years, there has been no financial instrument that has given returns as high as the stock markets. The only important factor to be kept in mind is that investment should always be accomplished with an objective in mind, and we should not be too carnivorous while investing. On the other hand, as inflation has been falling over the last couple of decades, so have the returns from basic savings accounts. Much instant access accounts no longer keep pace with inflation at all.
-- Opening a Demat account is as simple as opening a bank account. One can open a depository account with any DP by filling up the account opening form, which is available with the DP. Sign the DP-client agreement that defines the rights and duties of the DP and the person wishing to open the account. Receive your client account number (client ID) that will further assist you in generating Unique Identification in the Depository System.
How To Invest In Share Market ??
