| 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
Myth 2. You Need to Be A Market
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
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
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.