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Equity | May 14
Myths That You Must Know About Equity Investment

The term ‘equity investment’ is the trading of cash for a business share. This enables you to get assets for your business without bringing about any obligation. Selling equity funds means taking on investors.

There are several companies in India that raise capital by offering equity shares in the marketto acquire investors to influence their business to succeed and receive a return on investment.

Before making an investment in equity, one must be aware about the popular myths about equity trading in India

 

Myth 1. You Need to Be Rich

You don’t have to be a rich businessperson to buy stocks in the markets. You simply need to begin early and after that continue to invest over time to create wealth.

 

Myth 2. You Need to Be A Market Expert

You don`t need to be a market master to invest in equities. In case, if you don''''t think a lot about the business sectors, but you know enough to acknowledge that then you are on track to be a successful investor in your life. There’s no level of expertise is needed when it comes to investing in the stock market.

 

Myth 3. Can’t Invest At the Age of 40+

As you grow older you diminish your exposure to equities, but you don''''t have to avoid equities collectively. Yes, you can get exposed to stocks in your 40s to lead a major improvement in your future quality of life. In this way, you can figure out how to invest in equity shares.

 

Myth 4. More Risk Means More Returns

More the risks more the returns, however, that does not mean more risk will prompt more returns. True that investing in the stock market is all about measuring and setting your risk factor. But, don''''t think that as you may finish up losing up all your funds. It doesn''''t work that way.

 

Myth 5. Saving the stock on every dip

Purchasing good stocks on dips is a smart idea yet purchasing bad stocks on dips is an impractical notion. How to invest in the stock market is all about knowing the basic distinction. You should save the cyclical stocks just when the cycle is appearing of a bounce. Great stocks can be included on dips, however, unstable and theoretical stocks can’t.

 

So, this was all about myths regarding equity investment. Are we missing anything important? Or, you have any query to ask about? Then, write to us in the comments section given below.

 

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Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

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