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Equity | May 14, 2019

Myths That You Must Know About Equity Investment

The term ‘equity investment’ is the trading of cash for a business share. This enables you to get assets for your business without bringing about any obligation. Selling equity funds means taking on investors.

There are several companies in India that raise capital by offering equity shares in the market to acquire investors to influence their business to succeed and receive a return on investment.

Before making an investment in equity, one must be aware about the following myths of equity trading in India:

Myth 1. You Need to Be Rich

You don’t have to be a rich business person to buy stocks in the Indian share market. You simply need to begin early and after that continue to invest over time to create wealth.

Myth 2. You Need to Be A Market Expert

You don`t need to be a market master to invest in equities. In case, if you don't think a lot about the business sectors, but you know enough to acknowledge that then you are on track to be a successful investor in your life. There’s no level of expertise is needed when it comes to investing in the stock market.

Myth 3. Can’t Invest At the Age of 40+

As you grow older you diminish your exposure to equities, but you don't have to avoid equities collectively. Yes, you can get exposed to stocks in your 40s to lead a major improvement in your future quality of life. In this way, you can figure out how to invest in equity shares.

Myth 4. More Risk Means More Returns

More the risks more the returns, however, that does not mean more risk will prompt more returns. True that investing in the stock market is all about measuring and setting your risk factor. But, don't think that as you may finish up losing up all your funds. It doesn't work that way.

Myth 5. Saving the stock on every dip

Purchasing good stocks on dips is a smart idea yet purchasing bad stocks on dips is an impractical notion. How to invest in the stock market is all about knowing the basic distinction. You should save the cyclical stocks just when the cycle is appearing of a bounce. Great stocks can be included on dips, however, unstable and theoretical stocks can’t.

So, this was all about myths regarding equity investment. Are we missing anything important? Or, you have any query to ask about? Then, write to us in the comments section given below.

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