investment plans

What is stock market & Scope in our life –

What is stock market & Scope in our life

Meaning of Stock market – Stock Market is a combination of Stock & Market. First we will understand Stock then will understand about the market.

Stock: A bunch of shares is called stock (Capital of company is divided into a small part. Each part is

called shares).

Market: We all heard very well that market is that place where no. of buyers & sellers are exists for buy

& sell.

So, A that place where shares are BUY & SEll is called stock market.

Scope in our life: Now a day’s people wants to invest their funds in form of F.D, Mutual Fund,

Bonds, Stocks Real Estate etc. Here we are discuss about stock market.

· Basically stock market is that place where people are invested in Shares of companies, which are

Listed in Stock exchange like NSE & BSE.

· Shares prices change every time (exception in circuit) when market is opened, if people get shares in a low price & sell at a high price ,then he get profit & vice-versa he get loss.

· It makes profit very rapidly if investments are make wisely & obtaining information continuously.

Types of Trade in stock market :

· Trade for investments

· Trade for Intraday

Trade for Investments: In that case investors are invest their money in stocks for a certain

period i.e. for six months or one year or any other period a investor want and hold the stock, unless investor get profit. In that case the possibilities of gaining are much higher than trading but in that case fund will be blocked.

Trade for trading : In this case investors are invest their money for a day & tomorrow for BTST or STBT.In this case profit possibilities are low than investments but Fund will be free.

                              Components of stock market

Basically stock market has four components for Trading/Investing.

· Equity

· Future/Option

· Commodity

· Currency

Equity: Basically trading in equity i.e. trading in shares of a company for intraday or on margin or for delivery E.g Reliance Wipro TCS etc.

Future/Option: In this segment we will buy a unit of index (Nifty/Banknifty) or shares, whose price are generally at premium sometimes at discount also. These are not stocks these are basically a contract which expires on last Thursday of every month.  In this Segment risk is very high. In future/option trading required a plenty of technical knowledge as well as fundamental knowledge.

Commodity: In this segments trading in Gas Crude Oil Gold, Silver etc. In this category

 Trades take places only through futures contract.

Currency : In this segments Trading in currency whether any country currency

Merits & Demerits of share market


· It makes profit very rapidly

· Safety against inflation

· High liquidity

· Full Transparency

· Flexibility

· Ownership

· It provides Financial freedom

  • Dividend


· It required a plenty of knowledge regarding companies & entire things e.g. like Laws Taxations which are required to trading

· It have a very high risk

· No regularity to earning profit

· Everyone become Avaricious that is harmful · Sometimes market is very volatile, everyone can’t survive in that particular volatility

What is the difference between Investing & Saving

What is the difference between Investing & Saving

Investing:    First we will understand of investment prior to meaning of Investing. “Investments refers to a period where we deploy our funds for a return in that particular period“. 

Saving   :  Saving refers to that accumulated fund which is saved after all the expenses. Investment is applied in daily life by any person, his point of view he did investing.

Investing Vs Saving  –

  1. Investing is new concept, saving is old concept
  2. Investing have many opportunities but saving have less
  3. Investing manages to inflation but saving is not managed to inflation.
  4. Investing could not be done by any person but saving can be done by everyone. Because investing required knowledge but saving is not.
  5.   Investment give more return than saving
  6. Investing are varying I;e it depends on goals but in saving no variation
  7. Investment can be done by different ways e.g. Mutual fund (Tax saving fund, hybrid fund, multicap fund etc.), Stock Market, Real Estate FDs Etc.
  8. In Investing a little risk is exists buy in saving there is no risk .it gives surety to customers.

“A penny saved is a penny earned” —- Benjamin Franklin

Fundamental Money Tips to Save, Earn, Protect

  1. Create an emergency fund:  As we all know life is a journey full of unexpected twists and turns hence you should always have an emergency fund. Saving money is really important, and it’s something we all can do, but in reality, most of us don’t actually save money for emergency.
  2. Buy Insurance : Basically insurance is helping in risk management. As we all know there is always some unexpected events occurs in our life
    to manage all these unexpected events and having a balanced life we have an insurance.
  3. Create a Second source of Income :  If you are depend on a single source of income you are just a step away from poverty. If there’s one thing this pandemic taught us, it is that you can lose your job in a blink of an eye. You can have a passive income that could be rental income side business etc. Be aware that creating multiple sources of income is a marathon, not a sprint.
  4. Create a diversify portfolio :  As we all read a famous quote that never put all your egg in one basket. You should always have a diversify portfolio to manage your risks. A portfolio of multiple assets (diversified) will result in greater returns without a higher level of risk.

Common Mistakes an Investors make

  • 1. Lack of proper investment goals
  • 2. Hoarding cash and bonds during inflation – earning negative returns
  • 3. Buying only companies that you ‘like
  • 4. Not having an emergency fund
  • 5. Failure to diversify
  • 6. Relying solely on top performing assets :
  • 7. Lack of research
  • 8. Investing in businesses you have no idea about