Stock Market is a very big financial market. A lot of money can be made from the market and there are many ways to make money in it but for this you must have a very good knowledge of the Share Market and we have stock markets like CRUDE OIL, GOLD & USD DOLLAR Everything related to should be known. Only then we can earn good money from Share Market and can always earn money.
Every investor wants to earn big money from the Share Market irrespective of his or her experience but to make good money with the safety of your money a good strategy is necessary. Along with prudence understanding and strategy endurance is very important for investing in the stock market. The key to good earning lies in these things. These things not only have the ability to give excellent returns but also save your money from drowning.
10 Ways You Can Make Money By Investing In The Stock Market
1. BUY STOCK FOR LONG TERM / LONG TERM INVESTMENT
When you buy shares of a company for a long time such as 1 year or more and later when the price of that share increases when you sell it then such profit is called LONG TERM INVESTMENT.The most important is that such investments are of low risk but the returns from them are very high.If you make undisciplined investments in the stock market and by keeping an eye on the market keeping in mind both the fundamental and technical aspects of the future economy by choosing good stocks you will make a very good long-term profit.
For long term investing we have to do fundamental analysis of stocks first so if you want to take advantage of long term investment then you have to understand fundamental analysis very well. So that you can benefit from this way of making money from big investors.
BENEFITS OF LONG TERM INVESTMENT
- These are low risk investment.
- They are invested for a long time.
- Long return investment provides high return.
- They serve long term objectives.
- More investment can be made in the long term.
2. PROFIT FROM DIVIDEND
Dividend is a part of a company’s Net Profit given by a company to its shareholder After making tax and all other types of Adjustment the Net Profit is distributed equally among the shareholder of the company and the person who holds the shares, Gets the benefit of dividend in the same proportion
It is worth noting whether to give the dividend or not it depends entirely on the board of directors of the company if the board of directors even if the company declares the dividend.The decision to pay the dividend is made by the board of directors at the company’s Annual General Meeting (AGM).It is to be noted that – Most of the companies which are new in the market or who run on the policy that they will increase the business further by putting the profit back into the business, such company gives very little or no dividend.
Example : If you hold TCS shares you become a shareholder of Reliance and if Reliance Per Share decides to give a dividend of Rs 100 and you have 500 of TCS then you get a dividend of Rs 50,000.
Benefit Of Dividend
- The dividend is TAX FREE INCOME, so if you get the dividend on a stock / share / mutual fund then there is no tax on the dividend,
- Dividend is a fully PASSIVE INCOME and what is included is dividend income in a balanced investment portfolio.
- The share price in a company’s market does not make any difference to its dividend if the company wants to pay the dividend, then it gives it at the face value of the share.
- Dividend is like a fixed income big established and years old company often gives dividend at fixed time
3. IPO INVESTMENT
When a company lists its shares in the stock market for the first time it has to sell its shares to the public through an IPO and in such a situation the shares of the company are often very low at the time of the IPO but as soon as the company There is a list in the stock market So according to the public demand the share price of that company increases a lot and this helps the investors investing in IPO.
When a company needs additional capital, it issues an IPO. This IPO company can issue even when it is short of funds it is better to raise money from the IPO than to borrow from the market. This is the expansion plan of any company. After being listed on the stock market, the company can invest its shares in other schemes.
How to invest in IPO
you want to invest in IPO of a company as an Investor then for your convenience the Corporate Ministry of India and SEBI have laid down some rules and guidelines that need to be kept in mind.
If you want to invest in ipo then for that you have to open a demat or trading account. To invest under IPO you must have a bank account demat account and PAN number. After this, take the Prospectus and Application Form of the company you have selected. After that, properly fill the form with the demand draft of the specified amount and submit it to the designated bank.
Benefit of IPO
The capital invested by the investor goes directly to the company. However in case of disinvestment, the capital received from the IPO goes directly to the government. Once allowed to trade their shares, then they can be bought and sold yes one thing must be remembered that the investor will be responsible for the profit and loss of buying and selling the shares.
4. BENEFITS FROM BONUS SHARE AND STOCK SPLIT
Note that when the company gives its share holders in exchange for the shares they hold, and additional shares as profit it is called bonus share.
Example – If you have 1000 shares of a company and the company decides to give a bonus of one share on 2 shares then you will get 500 shares in exchange for 1000 shares and after getting the bonus shares you will get 1500 shares
Benefit OF BONUS SHARE
- Increase in the number of shares: Suppose you bought 100 shares of ABC company at the rate of Rs. 500 per share. If the company has given you 1: 1 i.e. an additional share in lieu of one share as a bonus then your total number of shares will be (100 x 2 = 200).
- Dividend benefit: Increase in the number of shares is expected to benefit dividend too. Like- Suppose you had 100 shares of ABC company after getting the bonus, whose number has increased to 200 shares. Now if the company ever declares a dividend in the future i.e. the company gives a dividend of Rs. 10 per share, then you will get a total profit (200 × 10 = Rs. 2000) in DIVIDEND i.e. you will get an additional dividend of Rs. 1000.
- Help is available in tax planning.
- Advantage of Liquidity: With the addition of additional shares in the market, the liquidity of that stock increases. That is, trading in the stock becomes more.
- Benefits to common investors due to lower share price: Due to lower share price it becomes easier for common investors to invest. For example the share price of Reliance company was Rs 1000 per share. After the issue of X-Bonus, the share price decreases to Rs 500.
5. BUYBACK OF SHARE
BUY BACK SHARE MEANS :Often the company sells its shares which it has sold to the public it decides to buy back the shares with a good price.That is called BUYBACK Share
The board of the company passes and approves a proposal for share buyback. The company then announces the buyback. In this, the record date and time period of buyback i.e. when the buyback will be done is described. What is a record date? It is a record debt that investors who hold shares of the company till that time can give their shares in buyback.
What does the investor mean
Should you sell your shares in buybacks or not.This question is in the mind of many investors. Experts say that if you have invested for a long period then you should not sell your shares just to earn some money in buyback. Take part in buyback only if you feel that the company’s share price is overvalued. And you also feel that the company does not have much growth opportunities.
6. BOND & DEBENTURES INVESTMENT
Bond / Debenture is similar to a loan.When the company needs money for a project, either they can take a loan from the bank or they take a loan from the public and issue Bonds / Debentures to the public.Whose repayment they have to do in due time
Companies pay interest at the rate fixed on Bonds / Debentures and after the completion of the bond period they repatriate the bonds back.Bonds / Debenture is a Secure Investment Option for any investor compared to Shares.
Benefits Of Bond Investment
- A bond is a debt security under which the bond holder gives a loan to the issuer and is also obliged to repay the principal before the due date after repaying the interest of the bond based on the terms of the bond.
- Bonds are generally liquid in that it is often very easy for any entity to sell bonds without affecting the price.
- Bonds are also of many types as per different choice of investors.
- The volatility of a bond is less than that of the stock market and is therefore generally considered safer than stocks.
- In many countries, bond holders have legal protection according to which even if a company is declared insolvent, the bond holders will still get some money.
7. MUTUAL FUNDS INVESTMENT
Mutual Funds are Indirect Investment in one type of Shares and Bonds.Mutual funds are a type of institution or trust that issues its own shares (shares) which people buy and invest in mutual funds.
The invested funds are invested in a wide range of shares and other securities by the professional manager of mutual funds based on their knowledge experience understanding and analysis.
The Benefit of Investment in Mutual Fund is that Professional Fund Manager tries to invest all the collected funds in the best way based on their knowledge in return they charge some fees.
Benefits of Mutual Fund
1. Professional Management
The money you invest in mutual funds is managed by mutual funds experts with their experience and skills.
The basic mantra of safe investment is that instead of putting your money in one place distribute it in many places and invest in many places. Every mutual fund invests money in different places.
There is something for every kind of person in Mutual Funds today. All types of funds are available for those who want high returns for those who want high returns maximum secured funds for those who want maximum safe investment.
You can easily invest in Mutual Funds. You can also withdraw funds from funds as easily. To invest you have to fill a form that you can fill from both online or offline or anywhere.
The share price of big companies is very high. Many times you want to invest in those companies but you are unable to do so because of your low budget. While a lot of people have money together in Mutual Funds your money is invested in big companies.
8. DELIVERY BASED INVESTMENT
This is the best way to invest in Share Bazar. In this, after purchasing the shares of a company you can keep a deposit in your demat account as long as you want. Any company sees its profit it is well known that if you are investing your money in a company then in two to three years it may be that the value of that company’s share is higher than before. Increase then you sell the shares of that company then you will profit. There is more brokerage in this.
Benefit Of Delivery Based Investment
- Since there is a time involved when the market is not good you can keep the shares and sell them when the price is suitable for you.
- Some banks and finance companies give loans based on your shares. Therefore when you are going through a difficult time your shares come in handy.
- If you see that a company is making a profit you can declare a dividend per share. Then, by holding shares of these companies you will get a dividend on each share.
- When you keep your money in a bank you get a maximum interest of 9% or 10%. However if you invest the same money in buying shares of growing companies you can get returns starting at least 15%. Some stocks may even give you 30 to 40% returns in a year. The best stock market advantage is when you trade for a long time.
- If a company makes a big profit it can declare bonus shares. If they declare 1: 1 it means that you can get one share free with your shares.
9. COMPANY FIXED DEPOSIT INVESTMENT (CORPORATE FD)
The company’s Fixed Deposit and Bank’s Fixed Deposit are the better investment options. Company Fixed Deposit earns a good rate of interest and Bank Fixed Deposit has a low interest rate. Because of this most investors invest more in the company Fixed Deposit. For this you should invest in a good track record company which will give you good investment returns
Benefit Of Company Fixed Deposit
Government and private sector banks offer up to 6% interest on FD. While small finance banks offer up to 9% interest. The rate of interest for senior citizens in bank FDs is higher than those under 60 years of age. Companies that have high ratings offer 9.25% – 10.75% interest on various periods of corporate FDs. Fixed deposit is the right option for those who want regular income and are in lower limit of income tax.
10. INVEST IN GOLD
Gold is something that has been done for centuries. In olden times gold was used for currency around the world. In addition, gold investment has proved to be a solid long-term investment and a valuable addition to one’s portfolio especially in a bear market. Since ages the traditional method was to purchase physical gold in the form of jewelry or coins. But over time gold investment has evolved into many other forms such as gold mutual funds and gold ETFs. Gold ETF (Exchange Traded Fund) is a device that is based on the price of gold or invests in gold. It trades on major stock exchanges and gold ETFs track gold bullion performance.
Benefits Of Gold ETF Investment
- Gold ETF units can be bought like shares in it.
- Delivery option is also available in Physical Gold
- The price of gold ETF is also very transparent as it is real time.
- You can invest in small amounts of gold
- Your portfolio also becomes diversified
- The cost of storage is saved i.e. the cost of the bank locker is saved.
- There is no need to worry about the purity of gold.
- You can also invest in a unit in it
- There is no wealth tax to be paid.
- Interms of tax they are cheaper than physical gold