Direct & Indirect Investment Option
You can invest in the share market through two ways
- Direct investment (through its own account)
- Indirect investment (through the mutual fund and insurance companies)
Direct investment is good for the people who know the market conditions & its risk factor very well; take the news of different sectors from different TV Channels & newspaper or who are the professionals. Investment in stock market gives higher return if investment is done in good companies.
Risk factor in this market is very high and it may happen that it will give you a higher profit or it may also give you a bigger loss.
It is also said that higher the risk higher the return and we all know that investment in equity is the most risky among all investment alternatives.
Indirect investment: – If you are a naïve investor, you do not know about the market condition and its risk factors then it should be better for you to choose the Mutual Fund companies. MFs invest your money with the help of professionals and in this way risk factor is reduced.
You can also choose Unique Linked Insurance Plans of the insurance companies. These products give you the insurance + investment benefits.