- By investing in listed shares, you become a share holder in the company – with an idea of riding the potential growth of the company. But there can be downside risks too by which you may incur capital loss. If you are willing to take on risk and invest in ‘GOOD’ companies, then investing in shares is a way to profit from stock prices going up and dividend payments. There are two ways to earn a return on investment from the company shares you own: Share price appreciation & Income from dividend – both being passive income. If you can estimate the risk – reward ratio, and you stay invested for the long haul – in a good company – you may gain.
- Initial Public Offer is the day when a company offers shares to public. Post an IPO the shares usually get listed on a stock exchange and starts trading. Any investor can participate in an IPO.
- You can buy shares of a company even before they are listed. While the liquidity may be a issue for private equity investors, you may gain when the shares get listed.
- An exchange-traded fund (ETF) is an investment fund that holds a basket of securities (like stocks or bonds) and trades on a stock exchange, similar to individual stocks. ETFs offer investors diversification and can be bought and sold throughout the trading day, experiencing price changes based on market activity. While ETF’s are popular worldwide, they are gaining popularity in India. Here is a short video on ETF’s Watch Video
- Gold is India’s favourite investments. It is said that the Indian household investments in Gold is more than the total reserves of Top 10 Central banks in the world. Traditionally many of us invest in physical gold and keep them in locker. But now we have option to buy Gold and Silver in electronic format – as ETF’s. You get price transparency, safety and convenience – all at lower cost.
