Investment: Long term plan

Once we have decided for long term investment plan, do no change it. Keep the plan unchanged for a very long period of time, if our selection is good and correct. Review the investment portfolio regularly and make necessary changes in the portfolio and continue as planned.

Except the investments giving the fixed return, all others are subject to market risks. The market will be volatile and accordingly the portfolio would give positive or negative return in the short term. But in the long term, the return would be in favour of investors.

The investments like gold and equity shares can be transferred to next generation too. 

Investment: An asset

Is investment an asset?
Yes,  if we are investing for a long time. If it is not consumed too early, our investments are the assets. Like land and house are hold for a long time.

Investments like shares, mutual funds, gold,  bonds, retirement savings are assets. These assets can be held for the longer time. The ownership of these assets can be transferred from generation to generation till they are sold to change the ownership.

These assets are such that if one does not own it,  another will own it.

So we must hold our investments as long as we can and enjoy the growth our assets. 

Investment: Shareholder and dividend, bonus and split of shares

When we invest in a company and buy a share from the share market, we become a shareholder for the company.

We are then entitled to a share of the profit or loss of the company. The management of company can declare dividend, bonus share or split of share to reward its shareholders.

Share price moves up and down during the trading session and varies according to the performance of the company. Price appreciation is also the return against the investment for the investors. The shareholders can book the profit against the investments anytime or continue to hold the share for a longer time. 

Investment: Shares & ETF

Investors have the option to invest in company shares or index exchange traded funds (ETFs).

We can invest in the shares of the companies listed on BSE and NSE. Index ETFs like Nifty ETF, Sensex ETF and Nifty bank ETF are also available for the investors who do not have knowledge about the share market. Other ETFs are also available for investors to diversify their portfolio.

Investment: Investing in Share Market

Before investing in share market, we must open Trading and Demat account.

Trading account is used to buy and sell the shares while Demat account is for storing the shares. Trading account is opened with a SEBI registered broker.

Once the trading and demat account is opened, we can place an order after transferring an amount in the trading account from a linked bank account. A buy order or a sell order is placed to buy or sell shares.

Day trading is buying the shares for a single day. The shares are sold before the close of the trading session of the day. And a delivery is buying the shares to hold them for a time period. The shares are sold when the shareholder places a sell order.

Investment: Share Market

After mutual fund, it is now the time to understand share market. This is the most risky investment. Investing in equity will give a good return in short and long period. We need to be careful in investing in share market or else we will lose our money.

Share market is a place where shares are bought and sold. The shares are traded in two major stock exchanges: Bombay stock exchange (BSE) and National stock exchange (NSE).

The shares of the listed companies are available for trading in the stock exchanges. The top 30 companies in BSE is Sensex. Similarly, the top 50 companies in NSE form the index named Nifty.

These exchanges are regulated by the Securities and Exchange Board of India (SEBI).