Friday, March 5, 2010

Equity

A common man who works for whole day and struggle for his hardearned money and gets some money at the end of the month thinking he should now invest this money to grow at a higher rate. By this he looks at different options available in the market and see from where he can raise his money at a higher rate and that too in less time. So the first thing comes to his mind is Share Market. Yes BSE and NSE and those blue chips and big companies shares from which he can raise money at a higher rate. Assuming that investers earn money from this place, he also invest and you can say that he invest in companies which are giving higher returns. So what now investing in share market will obviously give you higher return than your bankdeposits and PPF and other investments. But these investments made by common men (less knowledge about financial market and how it runs) are not smrt investments and therefore most of the time they suffer loss and bblame share market. Yes share markets are very volatile in nature but for those who play safe and smart, its the best place to invest in and make huge profit from it.
In share market we play with equities. these equities are just like your assests. And that is what people does not understand. We all think that share market makes money and in less time but that perception gets you the loss most of the time. It definitely makes money but u have to treat these equities jus like your assets. Don't play with your shares for short time, (took a short ride and move on), but play with it for long time. And that is the right way you can judge any script's performance. Taking example of human beings, we can't perform in a same manner everyday, likewise shares also moves up and down daily.
There comes smart investers, who treats share as asset, keeps them for long time and earn huge profit from them. so each and every invester should understand the concept of making money from share market in an easy and safe manner. It is safest way because shares movement are not much in long period and they always perform good and give higher return than your expectation.
Hence i would like to end my this blog saying that-always be a smart invester and while investing in share market, always keep your share for lnger period, that lowers your investment risk and enjoy higher returns.