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Showing posts from May, 2023

RISK MANAGEMENT - Learn Before Enter in Stock Market

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 RISK MANAGEMENT - Learn Before Enter in Stock Market              Risk management is a crucial aspect of investing in the share market. It involves strategies and techniques to minimize potential losses and protect your capital. Here are some key principles of risk management in the share market: Diversification: Diversify your portfolio by investing in a variety of stocks or other securities across different sectors, industries, and regions. This helps to reduce the impact of any individual stock or sector's performance on your overall portfolio. Asset Allocation: Allocate your investment capital across different asset classes, such as stocks, bonds, cash, and other instruments, based on your risk tolerance and investment goals. This can help balance risk and potential returns. Stop-Loss Orders: Implement stop-loss orders to automatically sell a stock if it reaches a predetermined price level. This helps limit potential losses by exiting a po...

History of Indian Share Market / Stock Exchange

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History of Indian Share Market / Stock Exchange.            The history of the Indian share market can be traced back to the 19th century during the British colonial period. Here is a more detailed overview of the key milestones and developments in the Indian share market history: Early Beginnings: The roots of the Indian share market can be traced back to the 1850s when trading in shares and securities began in Mumbai. The trading activities primarily took place in open spaces such as under the banyan tree opposite the Town Hall, where stockbrokers would gather to conduct transactions. Formation of Stock Exchanges: The first formal stock exchange in India, the Bombay Stock Exchange (BSE), was established in 1875 as "The Native Share and Stock Brokers' Association." It provided a regulated platform for trading stocks and shares. The BSE is the oldest stock exchange in Asia. Stock Market Regulation: In 1956, the Government of India passed the Securities...

SIP Vs. LUMSUM Wich Is Better Option For Mutual Fund Investment.

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SIP Vs. LUMSUM Wich Is Better Option For Mutual Fund Investment. SIP (Systematic Investment Plan) and Lump Sum are two common investment strategies used by individuals in the financial markets. Let's understand the differences between SIP and Lump Sum: SIP: A SIP is an investment strategy where you invest a fixed amount of money at regular intervals, usually monthly, in a mutual fund or any other investment instrument. With a SIP, you can invest a smaller amount regularly, which helps in averaging out the cost of your investments over time. It allows you to invest in a disciplined manner without worrying about market timing. Lump Sum: Lump Sum refers to investing a significant amount of money in one go, rather than spreading it over regular intervals. In this approach, you invest a larger sum upfront into a mutual fund or other investment vehicle. Benefits of SIP: Rupee Cost Averaging: Since you invest a fixed amount regularly, you buy more units when prices are low and ...

Benefits of SIP (Systematic Investment Plan)

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Benefits of SIP (Systematic Investment Plan)             Systematic Investment Plan (SIP) is an investment strategy that allows individuals to invest a fixed amount regularly in mutual funds over a period of time. SIP offers several benefits to investors, including: Rupee cost averaging: SIP allows investors to benefit from rupee cost averaging. Since a fixed amount is invested at regular intervals, investors automatically buy more units when the market is down and fewer units when the market is up. This helps in reducing the average cost per unit over time. Disciplined investing: SIP promotes disciplined investing habits as it requires regular investments. By investing a fixed amount at predefined intervals, investors develop a habit of saving and investing, which can lead to long-term wealth creation. Flexibility: SIPs offer flexibility to investors in terms of investment amounts and intervals. Investors can choose the amount they want to invest a...

How to Grow Your Investment With MUTUAL FUND

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 How to Grow Your Investment With MUTUAL FUND To grow your money in mutual funds, here are some strategies and considerations: 1. Goal Setting: Determine your financial goals and the time horizon for each goal. This will help you choose the appropriate mutual funds that align with your objectives, whether it's long-term wealth accumulation, retirement planning, or short-term savings. 2. Asset Allocation: Allocate your investments across different asset classes, such as stocks, bonds, and cash equivalents, based on your risk tolerance and time horizon. Asset allocation helps diversify your portfolio and manage risk. Consider your risk appetite and understand the potential risks associated with each asset class. 3. Research and Selection: Conduct thorough research on mutual funds before investing. Look for funds with a consistent track record, experienced fund managers, and a strong investment philosophy. Analyze the fund's historical performance, expense ratio, risk measures,...

Power of compounding in mutual fund

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  Power of compounding in mutual fund The power of compounding is a fundamental concept in investing and can have a significant impact on the growth of investments in mutual funds over time. Compounding refers to the process of reinvesting earnings or returns generated by an investment, which then generates additional earnings or returns in subsequent periods. Here's how the power of compounding works in the context of mutual funds: Reinvestment of Returns : Mutual funds typically generate returns in the form of capital appreciation (increase in the fund's net asset value) and income (dividends or interest payments). When these returns are reinvested back into the fund, they purchase additional shares or units, which increases the overall investment. Growth of Investment : As the investment grows, the potential for generating higher returns also increases. With compounding, not only is the initial investment growing, but the subsequent returns are also generatin...

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