What is Investing
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What is Investing?
Investing is putting your money in a ‘Financial Instrument’ with a view of earning a desired return or income in the future. For example- Stocks, Real Estate, Bonds etc.
The mechanism of investment works with the simple concept of trade, where one exchanges money for asset classes, which in future generate wealth.
For Example- An individual buys one share of company ABC for Rs. 100 and after five years the price of one share becomes Rs.500. So, the profit generated here is Rs. 400 which is a 400% return on the investment.
Let’s dive deeper into investing. Risk and Return are the two pillars of any investment. For any investment higher the risk higher the return and vice-versa. Risk is defined as the uncertainty linked to the investment, in layman terms it is the opposite of what is expected to happen. On the other hand, return is the key attractive factor towards any asset class. It is the change in the money value of the asset class over a period of time.
Types of investors on the basis of Risk-Reward profile-
- Moderately Aggressive
- Moderately Conservative
‘Aggressive’ being the high risk tolerant investor and ‘Conservative’ being more risk aversive.
To read more…https://helpdesk.swastika.co.in/portal/en/kb/articles/what-are-the-documents-required-to-open-a-demat-trading-account-with-swastika
Swastika has a hybrid model in which you can trade online and in a hassle-free way through our mobile app Justrade 2.0. You can also trade with the help of a dealer.
To get in touch with Swastika’s Experts you can call us @ 0120-4400789 or Visit our nearest branch.
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- What is Investing?
- Why to Invest ?
- The Do’s and Don'ts before starting to Invest ?
- How to invest?
- What can I invest in?
- What is a stock market?
- What is a stock?
- How to buy a stock?
- What is a stock exchange?
- What are Indices?
- What is a portfolio?
- What are dividends?
- What is an IPO?
- What is a circuit?
- What is a stock split?
- Bear and Bull markets?
- Stock market Jargons?
- Clearing and settlement processes?
- Key events and impacts on stock markets?