To expand its business, a company, at some point, needs to raise money. To do this, it can either borrow by taking a loan or raise funds by offering prospective investors a stake in the company...
There are more than 6,000 companies listed on our stock exchanges. Selecting companies whose equity shares you should invest in, becomes difficult due to this wide choice. To narrow down your choice,
Any financial educator will tell you about the importance of the well-informed investor. Investment in equity needs proper study and research before putting your money on the line. Use the following s
There are various methods and strategies one can adopt while investing in equity. Some of the popular ones are enumerated below:
There are broadly two kinds of risks associated with investing in equity: Systemic risks & Non-systemic risks
Once you have made your investment in shares of the companies you have selected, you cannot afford to simply forget about your investments
In the past, investing in equity involved a high cost (high brokerage charges of about 2 per cent of the transaction value) and a number of hassles
You will need to incur the following costs for investing in equity:
Once you sell your shareholding, you should compute the returns you have earned on your investment.
Investing in equity brings with it two streams of cash inflows – dividend income and capital appreciation (sale of shares at a profit). The tax impact on both these cash inflows is indicated below: