Investing For The First Time? Here's What You Should Know
Nifty, Sensex, Nifty Junior, Standard & Poor’s 500 and Systematic Investment Plans are some of the passive mutual funds which are the best and secure funds to be invested so that you can test your ability to hold the equities in a declining market.
# Large Cap Stocks: There are two ways of accessing the stock market: directly and indirectly. Direct investment means buying the shares in a single company and becoming the stake holder. For beginner who is interested to be involved with individual share must restrict their investments mostly to the quality, large cap stocks. Stick to the top 100 stocks by market capitalization because of its high liquidity.
# Long Term Investments: Investments made for long terms will be a better idea for the beginners. You must put at least five years of horizon in your mind if you hope to make money. Investments made only into stocks create wealth. So, expert often encourage investors for long term investments trends. However, you will need to fully understand each company, from their businesses to their risks. If you plan on investing in only stocks, make sure to spread the funds across different sectors such as healthcare, technology, small cap and big cap.
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