Saturday, October 30, 2010

How To Invest In Share Market ?

Share Market

 
Share Market is a place where everyone take bath in order to taste the money. But it purely depends on the fundamentals, luck, global cues, behavior of other country markets, currency rate, Forex rates, currency trading etc. Trading is done in terms of the shares. These shares are the name of the companies which gets listed, generally. Also the share price varies time to time even second by second, if the variation graph is critical.

Types Of Sectors

There are various sectors in the share market. Some of the known sectors are Oil, Reality meaning RealEstate, Construction, Finance, Telecommunication, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewelery, Packing, Consumer Goods etc. The best sector to invest is the decision taken by the investors understanding the fundamentals of the company, turnover, volumes traded, balance sheet and so on.

Identify the Best Sector

As we saw above there are lot of sectors available in front of the investors. But which sector one should choose that will give good returns in short term and long term investments. If the economy is weak and the world is facing a financial pressure or crisis then it is tough to identify the sector as every sector would get affected.

So it is better to pick up the mid cap stocks that will not go worse in near future. Because large cap stocks will plunge and surge drastically like anything. If you were caught at the peak say January 2009. then it is tough to get to that level.

How To Invest ?

This is the first question a person asks himself and approaches others when he wants to invest in sharemarket. Basically you should have a clear vision when you want to reap the benefits that is the returns.

If you want to pullout the invested money in short term, you should choose the critical moving sectors and shares and also don't act blindly on the third party suggestions. If you want to have the investment to be taken by your generation, then you can go for Long Term investment.

In long term investment one should analyze the pure fundamentals of the company, the dividend amount it pays to the share holders,the capital and the percentage of share ratio between the company and the public.

Terms Of Investment

Basically investors should go for two types of investments, short term and long term.
Short term investments are one that an investor will buy stocks and keep in his portfolio for at least 3-6 months. Gain must me kept in mind and thus the selection of stocks plays vital role here. Equity advisor consultancy is recommended.

Long term investments are one that an investor will buy stocks and keep in his portfolio for more than 6 months and for years. Here portfolio management is very important as many tax free income flashes the eye like Dividend, investment duration etc.

Share Trading Houses

Generally shares are traded electronically today and these process is done through the brokerage houses and from exchanges like Bombay Stock Exchange BSE and National Stock Exchange NSE.

Some of the well known brokerage houses are ICIC Direct, Reliance money, Sharekhan, HDFC Securities, India Infoline, Mangal Traders etc.
Share Tips, trading tips are provided by these houses to their customers regularly.

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