Investment in Share Market
Share market is very uncertain because of excessive price fluctuations in both up and down directions. This fluctuation of the price of share depends on the economic condition of the country, domestic & foreign policies of government, growth prospects of particular industry and financial condition of the company.
If you are going to invest in the share market then care about the following things:
- Analyse the fundamentals of the company: Before buying the share of any company you should gather the basic information about that company. The basic information could be product or service of that company, past 2-3 years ups and downs of the company’s share price, expected future growth of the company and corporate governance of that company.
- Choose the company share for the investment on the basic of its past years growth not on the basic of its low or high price.
- Define the true value of the share and if its present value is greater than its true value then it is the right time to book your profit.
- Make diversified portfolio: As different industry perform differently in a particular condition so make your portfolio with the stocks of different industry.
- Don’t invest into a company share because others are also investing in it.
- Take a look on your portfolio of share regularly to the monitor the growth of shares and take the required action at right time.
- Trade or invest in the share according to your risk-bearing capacity as there is no guaranteed returns on investment in the stock market