A WORD TO THE AUDIENCE

This blog is a startup guide for those who want to invest in stocks but don't know where to start. That is why this Blog has been named as “Dummies Guide to invest in Indian Bourse". There is no prerequisite of the subject on your part. You need not be a Economist, CA, or mathematician to invest in shares. All you need is some commonsense, eagerness to learn and willingness to spend some time.
Remember!!
"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it." -Peter Lynch(1995)

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Rajat Verma

Sunday, May 07, 2006

Why invest in Shares?

Goodness is the only investment that never fails.
-Henry David Thoreau (1817 - 1862), Walden: Higher Laws, 1854
  • You Capital appreciate quickly.

    Investment in shares can easily payback at least double of what is possible from Fixed Deposits in banks, if invested wisely.And this guide will help you do so.

  • You also get Income.

    Income in the form of Dividends is offered by the Bourse in addition to capital appreciation on the value of the Share. Dividend is a amount that the company distributes every year to its shareholders out of the profits it earns. As a rule of thumb, the amount likely to be received as dividend is around 1-2% of the market value of your shares.

  • No Speculation.

    Yes, you got it right. Investing in shares is not speculation, which is a very common cliché. Some people even call it Gambling. This is simply not true. If a share is bought after proper assessment of the company and the market, the risk is minimal and limited. It's the degree of risk that you are willing to take that will decide, whether it is Speculation or Investment.

  • Liquid Investment.

    A liquid investment is one which can be easily converted into Cash. They are much easier to buy and sell online than others forms of investment, say, Real Estate or Fixed Deposits. But be chary in selecting Stocks of companies, since all shares are not equally liquid. Companies that are traded frequently only allows great liquidity.

  • Easy to manage.

    Investment in shares are easy to manage and control than other forms of investment. These days, generally, the brokerage firm helps you to manage them easily.

  • You don't need a lot of money to start.

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