Investing in Shares

Investing in Stocks (Shares)

A Stock is not just a piece of paper or a ticker symbol on the stock exchange. But a Stock is the ownership interest in the Company. A Stock is a Piece of the ownership of a Company. So you should invest in shares for the ownership purpose of the company and not just for the price fluctuations.

Why to Invest in Stocks?

The commonest people most of the people ask is, why they should invest in stocks? There are several other asset classes available in the market than why to invest in Stocks? Well, this is because Equity is the only Asset class which gives you the highest return than any other Asset class (Gold, Debt, Real Estate) in the long run.

Stocks are for Capital Gains and the Growth of your Capital. If you want to achieve your Financial Goals than Equity is MUST. Stocks appreciate much more than any other asset class in the world.

How to Invest in Stocks?

People ask me that, How they can Invest in Stocks? Well, there are 2 ways to invest in stocks. One is the direct method in which you learn how to invest in the stock market and later on choose the stocks for you directly.

While in the other method, you divert your money to the Mutual Fund and the fund manager will invest your money in the stock market on behalf of you. Once you divert your money towards a reputed mutual fund, your job is over. Your fund manager will look after everything.

How to Analyze Stocks?

There are basically 2 methods of analyzing the stocks.

01) Technical Analysis
02) Fundamental Analysis

In the Technical analysis, we see the past price movement of the stock and take the Investment decision while in case of Fundamental Analysis, we analyze the fundamentals of the Company and after that we Invest.

Any Portfolio should have Equity Allocation according to the age group of it’s owner. It is a MUST Asset Class for the Financial Freedom.