Equity trading is the buying and selling of company shares or stocks, also known as equities, on the financial market. There are a few ways in which you can invest in equities. Most equity trading refers to the buying and selling of public company shares through a stock exchange or as over-the-counter products.
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Trading in equities is rewarding but risky. Those who loves to take risk can try their hands on it.
A mutual fund is an investment vehicle where many investors pool their money to earn returns on their capital over a period. This corpus of funds is managed by an investment professional known as a fund manager or portfolio manager. The gains (or losses) on the investment are shared collectively by the investors in proportion to their contribution to the fund.
Why to Invest in Mutual funds -
By investing in Mutual Funds what you get is:
- Increase in diversification.
- Liquidity on a daily basis.
- Professional investment management.
- Capacity to participate in investments that may be available only for larger investors.
- Convenience as well as service.
- Government oversight.
- Easier comparison
You can customize your choice based on your needs. The options available are:
Growth funds - The main objective of growth funds is capital appreciation. These funds put a significant portion of the money in stocks. These funds can be relatively more risky due to high exposure to equity and hence it is good to invest in them for the long-term. But if you are nearing your goal, for example, you may want to avoid these funds.
Income funds - As the name suggests, income funds try to provide investors with a stable income. These are debt funds that invest mostly in bonds, government securities and certificate of deposits, etc. They are suitable for different -term goals and for investors with a lower-risk appetite.
Liquid funds - Liquid funds put money in short-term money market instruments like treasury bills, Certificate of Deposits (CDs), term deposits, commercial papers and so on. Liquid funds help to park your surplus money for a few days to a few months or create an emergency fund.
Tax saving funds - Tax saving funds offer you tax benefits under Section 80C of the Income Tax Act. When you invest in these funds, you can claim deductions up to Rs 1.5 Lac each year. Equity Linked Saving Scheme (ELSS) are an example of tax saving funds.
If you don’t want to lock your funds in one stretch you can choose a Systematic Investment Plan (SIP).
What is SIP!!!!
SIP is a method of investing in mutual funds where you invest a specific amount at fixed intervals. This way, you can avoid timing the market and increase your wealth steadily
One of the best features about investing in mutual funds is that you don’t need a large amount of money to start investing. Most fund houses in the country allow investors to begin investing with as little as Rs. 500 (some start at Rs. 100) per month through Systematic Investment Plans (SIPs). Now, this might seem like a tiny amount to begin your investment journey, but when you invest consistently over a considerable period, you can achieve a substantial sum.
A fixed deposit (FD) is a financial instrument provided by banks or NBFCs which provides investors a may or may not require the creation of a separate account. All leading banks have the facility to open Term/Fixed Deposit. Higher rate of interest than a regular savings account, until the given maturity date.
If you wish to have a low risk and a moderate return, then you can opt for Fixed Deposits.
Institutions offering Fixed Deposits
- Financial Institutions.
- Non-Banking Finance Companies (NBFCs).
- Manufacturing Companies
- Housing Finance Companies
- Government Companies
Portfolio Management Services (PMS) refers to an investment portfolio in equities, fixed income, cash, debt structured products and other individual assets that is managed by a professional money manager and can be adjusted to fit specific investment objectives. Unlike in mutual funds where investor owns units of the fund, when you invest in PMS funds, you own individual securities. You have the suppleness to customize your portfolio to meet your specific requirements and objectives.
The National Pension Scheme is a social security initiative for the people of India by the Central Government. The scheme is open to all whether they are employed, self-employed and even the unorganized sectors except those from the armed forces. This scheme is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA).The scheme encourages people to invest in a pension account at regular intervals during the course of their employment. After retirement, the subscribers can take out a certain percentage of the corpus. As an NPS account holder, you will receive the remaining amount as a monthly pension post your retirement. The scheme is voluntary, portable across jobs and locations, with tax benefits under Section80CCD (1B) over and above the limits of section 80C i.e. Rs. 1,50,000/-
