Submitted by: Vaibhav Bhadange
In the equity market, stock tips are aplenty. Everyone believes themselves to be an expert just because they have a Trading and Demat account and have made some investment in the equity market! Therefore it is very important to have some basic knowledge about share market before you start investing in stocks according to share tips.
There are more than 6000 shares listed in India. But, broadly they can be categorized into four types:
Growth stocks: They are companies which grow faster than its industry or the market. Growth shares do not believe in paying dividends but reinvest profits for expansion and growth. They are marked by high P/E ratio and are always in demand due to potential price appreciation.
Value stocks: They are companies which have good fundamentals but are underpriced as they are temporarily out of favour. Value shares are great picks as they have a greater potential of growth. They have a low P/E ratio and low PBV ratio.
Income stocks: They are companies which regularly pay high dividends. These shares are often less volatile and may limited growth options. Profit from these stocks is in the form of regular dividends declared by the company. They are marked with higher dividend paying ratio.
Penny stocks: They are stocks with low price and low market capitalization. These shares are easy to manipulate because of low volumes. Investing in penny shares is extremely risky as these are extremely speculative in nature, illiquid and marked with volatile movements.
Investing in Indian stock market is the best way to build wealth. However, many people are wary of the stock market as they think stock investment is a risky investment. Stock investments are risky, but if investment is made in the right stocks and in a proper manner, it is the only way to build wealth and beat inflation.
There are two types of investors. If you are a short-term investor, you can make money with intraday trading in Indian stock market. However, this is a more risky form of investment and requires superior trading skills and practice. If you are a long-term investor, you can buy value stocks, growth stocks and dividend stocks which will give you good returns in long term. This is the best strategy for stock market investments as in the long term, the risk factor decreases significantly.
To make stock market investment in Indian stock market, you can buy large-cap stocks like Reliance Industries, Infosys, SBI, ICICI Bank, Mahindra & Mahindra, SBI, BHEL, L&T, Reliance Communication, ACC, Bharti Airtel, Sterlite, TCS, Tata Steel, HUL, Hindalco, Jindal Steel, Cipla, Hero Honda, Reliance Infra, ITC, DLF, Tata Motors, JP Associates, HDFC Bank, Tata Power, Maruti Suzuki, ONGC, NTPC, Wipro and HDFC.
You can also buy shares of mid-cap companies which can be mutlibagger stocks in share market. India has largecap stocks which were midcap stocks in the past. So it is better to watch out for these potential stocks which can garner good returns in the future.
Stock trading in India is simple and hassle-free. You need a demat and trading account for stock market India. You can open an online stock trading account with any online stock broking company in India. By opening an online trading account you can avail of different investment avenues for investing online: stock market, mutual funds, commodities, IPO, futures and options, currency trading and more.
Angel Broking is one of the top stock brokers in India offering online stock trading in Indian stock market. You can also invest in mutual funds, commodity trading, futures trading, online IPOs, currency trading with Angel Broking. Angel Broking has three online trading platforms for online stock trading in Indian stock Market Angel Investor, Angel Trade and Angel Diet.
Angel Broking also offers various tools and applications for online stock trading. Angel Market Watch is a free desktop application which helps you keep track of favourite stocks. Angel Portfolio Manager keeps track of all your investments and gives you a real-time picture of your portfolio. Angel Broking s mobile application, M-Connect help you stay in touch with stock market anytime, anywhere. You can check latest Indian stock price on your mobile, get latest stock market news and access you demat account and trading account information online. You also get instant trade confirmation on your mobile with Angel Broking s SMS services.
Angel Broking also offers Portfolio Management Services and Advisory services to investors and guide them to make stock investment in Indian stock market.
About the Author: Angel Broking is one of the best stock broking and wealth management companies in India. Angel Broking offers various products and services to Indian investors including online stock trading, mutual funds, derivatives trading,IPO, PMS and investment advisory services.
angelbroking.com
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