How to invest in Share market
We need to think twice before investing money in share market. Share market is the place where ever one likes to earn money easily. But it all depends on the knowledge, luck, global issues, other country economical market, currency variations, and many other things. Share market is a place to get by watching on the system.
There are different types of sectors to invest in? the share market like Real Estate, Oil and Refinery, Steel and infrastructure, Food production companies, Finance, Information Technology, Jewelry, medical drugs companies, banks, insurance companies etc. You need to decide which company to invest by yourself. You can take some suggestions from the experts, but final decision is yours.
You can do the research by knowing about the companies or browsing on the internet. You can search for company back ground, how good returns people are getting in the companies, ups and downs etc. Always go for long term investments. If you go for the mid cap stocks that will not go worse in the future. If you go for large companies, either they may go up or come down drastically like any thing. You will be affected if you got loose in these investments.
You need to understand the market before investing in the stock market and other investment opportunities. If you decide to purchase shares you have two ways to go. You can register with any brokerage company and you can go for full service brokerage and you can leave it in their hands. If money is consideration for you, you can go with a discount brokerage. Here you won?t get all the services like experts suggestions etc; they don?t offer the assistance like full service brokerages.
If you have more money in your saving account. It is better to go and invest your money in share market, because your money can be increased by a substantial amount. You will get very less amount for saving account (i.e. up to 2.5 %). If you invest in the share market, you may get annual returns up to 10 % or more than that.
There is always risk in anything you do. You need to more concentrate on the share market, before buying shares of any company.
You need to understand some basics when you invest in share market .
1) Learn more about stocks and you need to know why companies issue them to us.
2) You need to know all the risks which you need to take in the future? It all depends
on many factors like currency trading, foreign company investments, etc.
3) How much you are going to invest and how long you want to invest this money.
4) If you invest money in the share market, you can reduce your tax amount.
Note: Please take your Financial Adviser Suggestion before you take any decision.