Equity
Any beginner in the stock market should start with blue-chip stocks as the risk is lower for such stocks, compared to mid-cap or small-cap companies. Understand the business of the firm whose stock you plan to buy in the market If the stock is undervalued but has good growth prospects, invest in that stock Start with blue-chip stocks as they are less susceptible to market volatility Keep an exit plan ready both for when the stock is moving upwards and when it is moving downwards Diversify your investment portfolio to reduce the impact of market volatility
Top 10 Golden Rules
- Focus On The Long Term
- Do Your Homework
- Buy And Sell At The Right Price
- Diversify
- Stay Away From Tips And Rumour
- Understand Business Models Of Companies That You Invest In
- Do Not Make Rash Decisions
- Never Take Loans To Invest In The Stock Market
- Invest Small And Regular
- Always Monitor Your Investments
Mutual fund
Many of us dread the thought of managing our own investments. With a professional fund management company, people are put in charge of various functions based on their education, experience and skills Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types mutual funds.
- Equity or Growth Funds
- Income or Bond or Fixed Income Funds
- Hybrid Funds
Why Should Investment
One should never invest in Mutual Funds, but should invest through them.
To elaborate, we invest in various investment avenues based on our requirements, e.g. for capital growth - we invest in equity shares, for safety of capital and regular income - we buy fixed income products.
Fixed Income
Fixed income is linked to capital preservation and income generation, and includes investments like government and corporate bonds, CDs and money market funds. Fixed income is a safer alternative to stocks because it is a steady income stream with less risk.
Fixed income can provide some benefits
- Risk diversification from the stock market
- Preserving capital
- Generating income
- Return on investment
IPO Financing
IPO Financing, as the name suggests, is providing finance for the purpose of subscribing to initial public offers done by companies. In case of IPO Financing, the exposure is based on the borrower, and the securities/ shares, if allotted, are taken as collateral for securing the obligations under the loan.
