Equity

-
Equity Investment in Equities involves buying shares of publicly listed companies. The shares are traded both on the Bombay Stock Exchange (BSE), and the National Stock Exchange (NSE). When an investor invests in equity, unlike a fixed income instrument there is no capital guarantee. However as a trade off, the returns from equity investment can be extremely attractive. Indian Equities have generated returns close to 14% – 15% CAGR (compound annual growth rate) over the past 15 years. Investing in some of the best and well run Indian companies has yielded over 20% CAGR in the long term. Identifying such investments opportunities requires skill, hard work and patience. You may also be interested to know that the returns generated over a long term period (above 365 days, also called long term capital gain) are completely exempted from personal income tax. This is an added attraction to investing in equities.

Comments

Post a Comment

Popular posts from this blog

What kind of trading is possible in the stock market?

-
  What kind of trading is possible in the stock market? There are several types of trading that can take place in the stock market, including: 1.Day trading: buying and selling shares within the same trading day. 2.Swing trading: buying and selling shares within a few days to a few weeks. 3.Position trading: holding shares for a longer period of time, such as several months or years. 4.Scalping: a type of day trading where the trader aims to make small profits on a large number of trades. 5.Options trading: buying and selling options contracts, which give the buyer the right but not the obligation to buy or sell a stock at a specific price on or before a certain date. 6.Short selling: selling shares that the trader does not own, in the hopes of buying them back at a lower price and making a profit. It's important to note that each type of trading carries its own level of risk and requires different strategies, so it's important to do your own research and understand the basics ...
Read more

What is the use of indicators like RSI and MACD? || आरएसआई और एमएसीडी जैसे संकेतकों का क्या उपयोग है?

-
Image
 What is the use of indicators like RSI and MACD? A good question! RSI and MACD are the two popular momentum indicators in the trading community. RSI - The RSI calculates average price gains and losses over a given period of time. Usually, default time period is set to14 periods. RSI values are plotted on a scale from 0 to 100. MACD - The MACD is primarily used to gauge the strength of the stock price movement. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows. I have not explored much on MACD. However, I have studied RSI for many years. Hence, I will explain only RSI from a practical applic...
Read more

What is the concept of market share? || बाजार हिस्सेदारी की अवधारणा क्या है?

-
  What is the concept of market share? Market share is a concept that measures a company's sales or revenue as a percentage of the total sales or revenue generated in a particular market. It represents the portion or proportion of a market that a specific company controls or captures. Market share is typically calculated by dividing a company's sales, units sold, or revenue by the total sales, units sold, or revenue of the entire market and multiplying the result by 100 to express it as a percentage. For example, if Company A sells $10 million worth of smartphones in a market that has a total sales value of $100 million, Company A's market share would be 10% (10 million divided by 100 million, multiplied by 100). Market share is a key metric used to assess a company's competitiveness and performance relative to its competitors. It provides insights into a company's position in the market and its ability to attract and retain customers compared to other players in th...
Read more