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Stock Market Success Stories in India
Top 5 Stock Market Success Stories in India There are many success stories in Indian stock market history, but only a few are exposed. Here are the top 5 people who succeeded in the Indian stock market and stand as role models for newcomers. 1. Radhakishan Damani: The founder of the retail chain DMaRead more
Top 5 Stock Market Success Stories in India
There are many success stories in Indian stock market history, but only a few are exposed.
Here are the top 5 people who succeeded in the Indian stock market and stand as role models for newcomers.
1. Radhakishan Damani:
The founder of the retail chain DMart, Radhakishan Damani is not only a successful businessman but also a clever investor. He is known for his value investing approach and conservative investment style.
His early investments in companies like VST Industries and Sundaram Finance have yielded significant returns over the years.
2. Rakesh Jhunjhunwala
Unfortunately, he expired on 14th August 2022. He was called the “Warren Buffett of India, “Rakesh Jhunjhunwala is one of the most successful investors in India.
Starting with a small investment (Rs. 5000/-), he built his wealth gradually in the Indian stock market.
His ability to identify undervalued stocks and hold them for the long term has earned him a net worth of billions of dollars.
Check the Net Worth of Rakesh Jhunjhunwala here.
3. Nemish Shah:
Founder of Enam Securities, Nemish Shah is a veteran investor who has consistently outperformed the market.
His disciplined investment approach, focused research, and ability to identify multi-bagger stocks have earned him a reputation as one of India’s top investors.
4. Vijay Kedia:
Vijay Kedia is a self-made investor who started his journey with just Rs. 35,000. Through sheer determination and a keen understanding of the market, he built a multi-crore portfolio.
He is known for his contrarian investment style and the ability to spot hidden gems in the market.
Check Vijay Kedia’s Portfolio in 2024 Here
5. Ramesh Damani:
Renowned investor and member of the Bombay Stock Exchange, Ramesh Damani has been a prominent figure in the Indian stock market for decades.
His investment philosophy revolves around identifying high-quality businesses with strong growth potential and holding them for the long term.
See lessCan I do Intraday Trading After 3 PM?
Best Time to do Intraday Trading in India Intraday trading occurs during regular market hours (9:15 AM to 3:30 PM), many traders wonder if they can continue trading after 3 PM and whether it is possible. Even though you have time till 3:30 PM to trade, there are some risks associated with that. I wiRead more
Best Time to do Intraday Trading in India
Intraday trading occurs during regular market hours (9:15 AM to 3:30 PM), many traders wonder if they can continue trading after 3 PM and whether it is possible.
Even though you have time till 3:30 PM to trade, there are some risks associated with that.
I will explain the pros and cons of doing intraday trading after 3 PM and also common questions and answers to help you make proper decisions in the market.
Intraday Timings in India:
Indian stock market operates through two primary exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The regular trading hours for both exchanges are from 9:15 AM to 3:30 PM, Monday to Friday, excluding market holidays.
This period is commonly referred to as the “trading window” and represents the time frame during which most intraday trading activities take place.
Can I Do Intraday Trading After 3 PM?
While the official trading hours end at 3:30 PM, it is important to note that certain activities related to intraday trading can still occur after 3 PM. However, there are some limitations and considerations to keep in mind:
Few brokers auto-square off the positions between 3:00 PM to 3:30 PM at market price.
So be careful while trading after 3:00 PM. It is best to square off the position before 3:00 PM.
Risks of Trading After 3 PM
Trading after 3 PM carries additional risks, including lower liquidity, wider bid-ask spreads, and increased price volatility.
Traders need to assess their risk tolerance and carefully consider the potential impact of trading after regular market hours.
Best Time to Do Intraday Trading:
The best time to engage in intraday trading depends on various factors, including market conditions, volatility, and personal trading preferences.
However, many experienced traders consider the first hour of trading, known as the “opening bell (9:15 to 10:15 AM),” and the last hour of trading, known as the “closing bell (2:30 to 3:30 PM),” as the most favorable times for intraday trading.
During these periods, volatility is high, resulting in increased trading opportunities and liquidity.
Closing Auction Trading:
After 3:30 PM, exchanges conduct a closing auction session, also known as the “closing bell,” to determine the closing prices of stocks.
During this period, traders can place orders to buy or sell securities at the closing price, but these orders are executed at the end of the auction, typically around 3:40 PM.
After-Hours Trading:
Some brokers allow after-hours trading, also known as extended-hours trading, which allows investors to trade securities outside of regular trading hours.
However, after-hours trading usually has lower liquidity and higher volatility, making it riskier than regular market hours.
Derivative Contracts:
In India, derivative contracts such as futures and options have specific trading hours that may extend beyond regular market hours.
Want to know what are Futures & Options? Here are the Best YouTube channels to learn F&O.
You should be careful while trading after trading hours because the trading volumes and liquidity tend to be lower during extended trading hours.
FAQs:
Q1: Can I place intraday orders after 3:15 PM?
Ans: Yes, you can place intraday orders after 3:15 PM, but they may be auto-squared off by your broker. Try to close the positions before 3:00 pm, why risk your money at closing hours?
Q2: What is the Closing Auction Session?
Ans: The closing auction session is a period after regular trading hours during which exchanges determine the closing prices of securities through an auction process. Traders can place orders to buy or sell securities at the closing price during this session.
Q3: Is After-hours trading available in India?
Ans: Yes, some brokers in India offer after-hours trading, allowing investors to trade securities outside of regular trading hours. However, after-hours trading typically has lower liquidity and higher volatility than regular trading hours. It is not suggestible for beginners to trade at after-hours sessions.
Q4: Are derivative contracts traded after 3 PM?
Ans: Yes, derivative contracts such as futures and options may continue trading after 3 PM, but trading volumes and liquidity tend to be lower during extended trading hours.
Q5: What are the risks of trading after 3 PM?
Ans: Trading after 3 PM carries additional risks, including lower liquidity, wider bid-ask spreads, and increased price volatility. Traders should assess their risk tolerance and carefully consider the potential impact of trading after regular market hours.
Q6: Can I use technical analysis for intraday trading after 3 PM?
Ans: Yes, technical analysis can be used for intraday trading after 3 PM, but traders should adjust their strategies and risk management techniques to account for lower liquidity and increased volatility.
Q7: How do I place orders for after-hours trading?
Ans: To place orders for after-hours trading, you will need to use a broker account that offers this service. Contact the customer support executive to check whether this service is available or not.
Q8: Can I trade international markets after 3 PM?
Ans: Yes, some brokers allow us to trade international markets after 3 PM, depending on the market’s operating hours and the availability of after-hours trading
See lessWhat are the Best Penny Stocks to Invest in 2024?
Top 5 Multibagger Penny Stocks to Invest in 2024 S.No. Name CMP P/E Mar. Cap NP Qtr. Cr. ROCE % ROE 1 Pressure Sensitive Systems 9.97 0.98 147.92 40.47 109.67 128.05 2 Franklin Industries Ltd 6.79 3.50 24.55 3.45 70.73 52.63 3 Sobhagya Mercantile Ltd 18.80 0.04 0.45 2.16 43.94 35.51 4 Seacoast ShippRead more
Top 5 Multibagger Penny Stocks to Invest in 2024
CMP
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See lessHow to Make 3000 a Day Without Investing?
Earning Opportunities from Stock Market Courses Do you know that the people who teach the stock market are earning more than most traders? Yes, I can give you 100s of examples. In today's digital age, the internet has become a primary source of learning. With the rise of platforms like YouTube and URead more
Earning Opportunities from Stock Market Courses
Do you know that the people who teach the stock market are earning more than most traders?
Yes, I can give you 100s of examples.
In today’s digital age, the internet has become a primary source of learning. With the rise of platforms like YouTube and Udemy, people are interested in sharing knowledge that they have expertise in.
Stock market courses on YouTube and other online sources have become immensely popular, offering aspiring traders and investors valuable insights, strategies, and techniques to overcome the struggles in the stock market.
I will explain the various ways you can earn money from selling stock market courses on YouTube, websites, and other platforms.
Best Ways to Earn from Stock Market Courses:
Here are the 10 best ways to earn money from stock market courses without investing.
1. YouTube Ad Revenue:
If you create and upload your stock market courses on YouTube, you can earn revenue through ads displayed on your videos.
YouTube’s Partner Program allows content creators to monetize their videos by enabling ads, and you earn a portion of the ad revenue generated from your content.
Create A New YouTube Channel Here
2. YouTube Exclusive Content:
Offer exclusive content to your audience through membership-based models on YouTube.
This could include advanced courses, personalized coaching sessions for members, or access to exclusive content.
3. Affiliate Marketing:
Promote stock market books from e-commerce platforms like Amazon and Flipkart by providing the affiliate link in the description of your course. By including affiliate links in your course descriptions, video descriptions, or within the content itself, you can earn a commission for every sale made through your referral.
You can also promote other related courses in your course descriptions.
4. Sponsorships:
As your YouTube channel or online course gains popularity and attracts a decent audience, you may have the opportunity to get sponsorships from relevant brands/ websites or companies in the financial sector.
Sponsors will pay you to promote their products or services to your audience.
This revenue is far bigger than your YouTube ad revenue. But be loyal to your audience, and don’t promote illegal Apps/ Services with which you may lose your community over a period.
5. Conduct Live Workshops and Webinars:
Host live workshops, webinars, or online programs where participants pay a fee to attend and learn from your expertise.
These interactive sessions can provide additional value and generate revenue from ticket sales or registration fees.
But this is possible only after you get decent followers from your free classes/ courses.
6. Merchandise Sales:
CA Rachana Ranade ma’am, and a few other stock market trainers are selling merchandise (T-shirts, etc.,) on YouTube and websites.
Create and sell branded merchandise such as apparel, accessories, or educational materials related to your stock market courses.
Merchandise sales can serve as an additional revenue stream and help build brand awareness.
7. Consulting Services:
Sell your expertise in the stock market to individuals or businesses seeking guidance on investment strategies, portfolio management, or financial planning.
Charge fees for your consulting services based on your experience and expertise.
8. Write & Sell Books:
If you establish yourself as a credible authority in the field of stock market education, you may become an author.
Write and publish books, e-books, or other educational materials related to your area of expertise and earn from book sales.
9. Brand Partnerships:
Collaborate with brands or companies in the financial industry to create branded content or sponsored videos related to your audience’s interests.
Brands will pay you for product placements, endorsements, or sponsored content creation.
10. Premium Telegram Group:
Create a premium Telegram group where members pay a subscription fee for access to exclusive content, resources, and community forums.
Offer valuable insights, trading strategies, and ongoing support to your members in the group.
FAQs on Earning from Stock Market Courses:
Q1: Can I monetize stock market courses on YouTube if I’m not a certified financial advisor?
Ans: Yes, you can monetize your content based on your expertise, experience, and insights into the stock market. You should not copy the video or audio content from other online platforms.
If you publish genuine content and if you can attract viewers with your skills, your channel gets monetized.
Q2: How much can I Earn from ad Revenue on YouTube?
Ans: Ad revenue on YouTube varies based on factors such as the number of views, engagement rates, ad formats, and niche audience. As of my knowledge, if your channel gets 1 lakh views per day, your average monthly revenue will be around 3 to 5 lakhs.
Q3: What types of merchandise can I sell related to stock market courses?
Ans: You can sell a variety of merchandise related to stock market courses, including branded shirts, accessories (such as mugs or notebooks), educational materials (such as books, trading charts, and patterns), and digital products (such as online courses and e-books).
Q4: How can I attract sponsors for my stock market courses?
Ans: To attract sponsors for your stock market courses, focus on building a strong community, engaging with your audience, and providing valuable content. If you are popular enough, then the brands will approach you before you approach them.
Q5: What are some effective strategies for promoting my stock market courses and attracting an audience?
Ans: Creating high-quality & useful content, engaging with your audience through live streams or Q&A sessions, collaborating with influencers or industry experts, and optimizing your content for search engines are some of the best ways to grow your audience.
Q6: Can I offer free content alongside premium courses to attract an audience?
Ans: Yes, It is best to offer free content in the beginning. Offering free content can be an effective strategy to attract and engage your audience. Build trust with your audience, and encourage them to enroll in your premium courses for advanced strategies.
See lessHow to Learn Intraday Trading?
Best Books to Learn Intraday Trading in India There are many ways to learn intraday trading India like Watching YouTube channels Joining Free online courses Websites like Investing.com, IndianStox.com, Zerodha Varsity, etc., Books In this article, I have listed the Top 5 Books to Learn Intraday TradRead more
Best Books to Learn Intraday Trading in India
There are many ways to learn intraday trading India like
In this article, I have listed the Top 5 Books to Learn Intraday Trading to become a Professional.
Intraday Trading requires a deep understanding of market dynamics, technical analysis, and risk management strategies.
For an aspiring trader like you books can serve as invaluable resources.
Here is the list of the best-selling books on intraday trading authored by experts in the field.
Best-Seller Intraday Trading Books:
1. Day Trading and Swing Trading the Currency Market
Technical and Fundamental Strategies to Profit from Market Moves
Author: Kathy Lien (Director of Currency Research at GFT)
Amazon Price: 4,765/-
Amazon Rating: 4/5
Buy on Amazon
2. A Beginner’s Guide to Day Trading Online
2nd Edition
Author: Toni Turner (Author of A Beginner’s Guide to Short-Term Trading)
Amazon Price: 1,309/-
Amazon Rating: 4.4/5 (1447 Ratings)
Buy on Amazon
3. How to Day Trade for a Living
A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
Suitable for Beginners
Author: Andrew Aziz
Amazon Price: 398/- Including GST
Amazon Rating: 4.4/5 (441 Ratings)
Buy on Amazon
4. Mastering the Trade, Third Edition
Proven Techniques for Profiting from Intraday and Swing Trading Setups
Author: John F. Carter
Suitable for those who want to learn Swing Trading & Day Trading techniques.
Amazon Price: 4,680/- Including GST
Kindle Edition: Rs. 1,441/- Including GST
Amazon Rating: 4.6/5 (701 Ratings)
Buy on Amazon
5. The Complete Guide to Day Trading
A Practical Manual From a Professional Day Trading Coach
Author: Markus Heitkoetter
Amazon Price: 2,500/- Including GST
Amazon Rating: 4.0/5 (79 Ratings)
Buy on Amazon
FAQs on Intraday Trading:
Q1: What is Intraday Trading?
Ans: Intraday trading involves buying and selling of equity stocks within the same day, aiming to get profits from short-term price fluctuations.
Q2: Is Intraday Trading Risky?
Ans: Yes, intraday trading carries risks due to the volatile nature of short-term price movements. It requires disciplined risk management and thorough market analysis. You have to sell the stocks by the end of the same day even if your positions are in losses.
Q3: Do I need prior trading experience to start intraday trading?
Ans: Reading a few books and attending courses is not enough to earn profits in intraday, practice with virtual money on paper trading sites like TradingView.
Q4: What are some common intraday trading strategies?
Ans: Breakout Trading, Pivot Points, Price Action Trading are some of the high probability strategies for intraday traders..
Q5: How do I choose the right stocks for intraday trading?
Ans: Look for stocks with high liquidity, volatility, and volume, as they are good to earn profits.
Q6: What role does technical analysis play in intraday trading?
Ans: One who become pro in using technical analysis will definitely stays at profit side in intraday trading. Price action and breakout trading are must learn strategies in technical analysis.
Q7: How important is risk management in intraday trading?
Ans: Risk management is essential in intraday trading to protect capital and minimize losses. Setting stop-loss orders, position sizing, and adhering to risk-reward ratios are common risk management techniques.
Q8: Can I make a living from intraday trading?
Ans: It requires skill, discipline, and continuous learning. Do not enter stock market if you are not able to make your living from other source of income.
Q9: Should I rely solely on books for learning intraday trading?
Ans: Books are valuable resources for learning trading strategies and techniques, but practical experience and continuous learning through practice, mentorship, and real-time market observation are also crucial for success.
Q10: How can I manage emotions while intraday trading?
Ans: Emotions such as fear, greed, and anxiety can impact trading decisions. Developing a disciplined trading plan, practicing mindfulness techniques, and maintaining emotional balance are key to managing emotions in intraday trading.
See lessHow Does IPO Allotment Process Work?
Myth & Facts of IPO Allotment Process Understanding how the IPO allotment process works is essential for investors looking to participate in Upcoming IPOs in India. In the below lines, I will try to answer some of the most common myths regarding IPO Allotment process & some FAQs. Myth-1: AllRead more
Myth & Facts of IPO Allotment Process
Understanding how the IPO allotment process works is essential for investors looking to participate in Upcoming IPOs in India.
In the below lines, I will try to answer some of the most common myths regarding IPO Allotment process & some FAQs.
Myth-1: All Investors who Apply for an IPO Receive an Allocation
Fact: In oversubscribed IPOs, where demand exceeds supply, not all investors may get the allocation. The allotment process depends on various factors, including subscription levels and allotment criteria.
Myth-2: Institutional Investors get Preferential Allocations in IPO.
Fact: Institutional investors may receive larger allocations in some cases, retail investors also have opportunities to participate in IPOs. The allotment process aims to ensure fair distribution among all investor categories.
Myth-3: Applying for More Lots Increases the Chances of Receiving an Allocation.
Fact: Applying for more lots does not guarantee an allocation. In fact, it may lead to a smaller allocation or even rejection in oversubscribed IPOs.
Myth-4: The IPO Price Determines the Allotment Price.
Fact: The allotment price may differ from the IPO price, depending on various factors such as demand, market conditions, and bidding patterns.
Myth-5: Retail Investors Have no Control over the IPO Allotment Process.
Fact: Retail investors can influence their chances of receiving an allocation by carefully considering factors such as bid price, subscription levels, and allotment criteria. Few investors apply for an IPO from multiple demat accounts to increase the chances of allocation.
FAQs:
Q1: How is the IPO allotment process initiated?
Ans: The IPO allotment process begins after the IPO subscription period closes and the company finalizes the allocation criteria.
Q2: What factors determine IPO allotment?
Ans: Allocation criteria includes subscription levels, investor categories, bidding patterns, and allotment methodologies specified by regulatory authorities.
Q3: How are shares allocated in an oversubscribed IPO?
Ans: In oversubscribed IPOs, shares may be allocated proportionately or through a lottery system, depending on the company’s discretion and regulatory guidelines.
Q4: Can retail investors apply for shares in an IPO?
Ans: Yes, retail investors can participate in IPOs by applying for shares through brokerage firms or online platforms during the subscription period.
Q5: Is there a minimum investment requirement for participating in an IPO?
Ans: The minimum investment requirement varies depending on the company’s IPO size and the regulatory requirements of the stock exchange. The investors must at least bid for 1 lot of shares.
Q6: How to check the IPO Allotment Status?
Ans: Investors can check their IPO allotment status through various websites like BSE & NSE Official websites, linintime, kfintech, and also on your Demat account.
Q7: What Happens if I don’t receive an Allocation in an IPO?
Ans: If an investor does not receive an allocation in an IPO, the amount paid for the applied shares is refunded to the investor’s account. For this, you don’t have to submit any application, it is an automatic process.
Q8: Are there any risks associated with participating in IPOs?
Ans: Like any investment, participating in IPOs carries certain risks, including market volatility, pricing uncertainties, and regulatory changes.
Q9: Can investors modify or cancel their IPO applications after submission?
Ans: In most cases, investors can modify or cancel their IPO applications within the specified deadline before the subscription period closes.
Q10: How soon after the IPO allotment process can investors start trading their allocated shares?
Ans: Investors can start trading their allocated shares once the IPO is officially listed on the stock exchange, usually a few days after the allotment process is completed.
See lessIs SIP a Bad Investment?
Pros and Cons of SIP Investment Investing in Systematic Investment Plans (SIPs) is always a good strategy when you want to build wealth over the long term. By investing small amounts regularly (probably monthly), we can benefit from rupee cost averaging, diversification, flexibility, and the power oRead more
Pros and Cons of SIP Investment
Investing in Systematic Investment Plans (SIPs) is always a good strategy when you want to build wealth over the long term.
By investing small amounts regularly (probably monthly), we can benefit from rupee cost averaging, diversification, flexibility, and the power of compounding.
Before knowing whether SIP is bad or good, let us understand what actually the SIP Invest is?
What is SIP Investment?
SIP is a disciplined investment strategy and also the most popular scheme that allows individuals to invest a fixed amount of money regularly in mutual funds.
SIP Full Form
SIP stands for “Systematic Investment Plan“.
With SIPs, investors contribute small amounts at predefined intervals, typically monthly or quarterly. This approach helps build a habit of regular saving and investing while benefiting from rupee cost averaging and the power of compounding over the long term.
Step-Up SIP Investment
A step-up SIP investment is a type of Systematic Investment Plan where investors gradually increase their contribution amount gradually.
Unlike traditional SIPs where the investment amount remains constant, in a step-up SIP, investors have the flexibility to raise their investment amount periodically, usually annually or semi-annually.
Benefits of SIP Investment
Investing in Systematic Investment Plans (SIPs) offers several benefits that can help individuals achieve their financial goals. Unlike direct investment in stocks SIP gives a standard returns over a period of time.
Here are the 9 Benefits of Investing in SIPs.
1. Systematic Investing:
SIPs allow investors to contribute small amounts at regular intervals, such as monthly or quarterly.
This systematic approach encourages consistent saving and investing habits, regardless of market fluctuations.
2. Affordability:
With the option to start with minimal investment amounts, even individuals with limited monthly income can participate in the stock market and benefit from long-term wealth accumulation.
3. Rupee Cost Averaging:
SIPs utilise a strategy called rupee cost averaging, which helps mitigate the impact of market volatility. By investing a fixed amount at regular intervals, investors buy more units when prices are low and fewer units when prices are high, ultimately averaging out the purchase price over time.
4. Diversification:
SIPs offer the opportunity to invest in a diversified portfolio of securities through mutual funds. This diversification spreads risk across multiple sectors, and companies, reducing the impact of individual stock volatility on the overall investment portfolio.
5. Professional Management:
Mutual funds managed by experienced fund managers take the investment decisions in SIPs.
These professionals conduct in-depth research, analysis, and portfolio management to optimize returns and manage risks on behalf of investors.
6. Flexibility:
SIPs provide flexibility in terms of investment duration and frequency. Investors can choose the tenure and interval of contributions based on their financial goals.
7. Accessibility:
SIPs are easily accessible through various investment platforms, including online portals, mobile apps, and financial advisors. Investors can monitor their investments, track performance, and make adjustments conveniently from anywhere at any time.
You can also invest in SIPs through your broker’s website like Zerodha, Groww, Upstox, etc.,
If you haven’t opened your Demat account, here are the registration pages of popular discount brokers.
Zerodha User Registration
Upstox User Registration
8. Power of Compounding:
By consistently contributing to SIP plans, investors can benefit the power of compounding.
Over time, reinvested dividends and capital appreciation can exponentially grow the investment portfolio, leading to significant wealth accumulation in the long run.
9. Transparency:
SIPs offer transparency in terms of costs, performance, and portfolio holdings.
Investors receive periodic statements and reports detailing their investments’ progress, ensuring clarity and accountability from fund managers.
SIPs provide a convenient, disciplined, and effective approach to wealth creation, making them a popular choice for investors looking to build a secure financial future.
Myths and Facts:
SIP has become a popular investment option for individuals looking to grow their wealth over the long term.
Like any investment strategy, SIPs are often subject to misconceptions and myths.
We have identified some popular myths about SIPs and have come up with the actual facts.
This will give a clarity to the upcoming investors.
Myth-1: SIPs are only for small investors.
Fact: SIPs are suitable for investors of all income slabs. Whether you are starting with a small amount like 1000 rupees a month or have a substantial investment portfolio, SIPs offer a disciplined approach to investing that can benefit investors at any level.
Myth-2: SIP returns are guaranteed.
Fact: SIPs can give attractive returns over the long term, but they are subject to market risks. The returns from SIP investments depends on the performance of the underlying assets, such as stocks. SIPs won’t give guaranteed returns.
Myth-3: SIPs are not suitable when the market is in downtrend.
Fact: Market downtrends can give buying opportunities for SIP investors. By investing a fixed amount regularly, SIP investors benefit from rupee-cost averaging, buying more units when prices are low and fewer units when prices are high, potentially leading to higher returns over time. This was already discussed in our article.
Myth-4: SIPs require a large initial investment.
Fact: SIPs allow investors to start with small investment also. Many mutual fund companies offer SIPs with minimum investment amounts as low as Rs. 500 or even less, making them accessible to a wide range of investors.
In India, even a daily wager can invest in SIPs. It was very convenient to invest.
Myth-5: SIPs are only for equity investments.
Fact: SIPs are commonly associated with equity mutual funds, investors can also use SIPs to invest in other assets like debt funds and hybrid funds based on their risk tolerance and investment objectives.
Example
I will try to explain the Systematic investment plan with an example, so that even a beginner can understand easily.
Let us consider two investors, Shiva and Ramu, who each invest Rs. 5,000 per month in a mutual fund through SIP over a period of 10 years.
Let us assume the mutual fund generates an average annual return of 12%.
Shiva starts investing immediately, while Ramu waits for two years before starting their SIP.
Despite investing the same amount, Shiva’s investment grows to a significantly higher value compared to Ramu’s investment due to the power of compounding and the longer investment horizon.
This example illustrates the importance of starting early and staying invested in SIPs to maximize returns over time.
FAQs:
Q1: Is SIP a Safe Investment Option?
Ans: As we have discussed earlier, SIPs are subject to market risks, but by investing regularly over the long term, investors can potentially overcome risks and benefit from market fluctuations. We can say it is safer when you aim for long term approach, since the fluctuations won’t affect long-term investors.
Q2: Can I Change the Amount of my SIP Investment?
Ans: Yes, investors can typically increase, decrease, or stop their SIP investments at any time based on their income sources.
Q3: What Happens if I miss an SIP Payment?
Ans: Missing an SIP payment does not necessarily affect the investment itself, but it may disrupt the investment plan and impact the overall returns at the end of your tenure.
Q4: Do we Need to Pay Taxes for SIP Returns?
Ans: Yes, the returns earned from SIP Investments are taxable. SIP returns from equity mutual funds held for more than one year are subject to long-term capital gains tax, while returns from debt mutual funds are subject to tax based on the holding period and applicable tax rates.
Q5: Can I withdraw my SIP investment before the completion of the investment tenure?
Ans: SIPs are intended for long-term investing, investors can typically redeem their investments partially or fully at any time, subject to applicable terms and conditions.
See lessWhy Most of the People Fail in Stock Market?
6 Reasons Why Investors Fail in Stock Market Many people fail in the stock market due to greed, FOMO (Fear of Missing Out), and lack of discipline. There are a lot more reasons behind the failure in the stock market. I have listed out the common reasons why individuals may not succeed in the stock mRead more
6 Reasons Why Investors Fail in Stock Market
Many people fail in the stock market due to greed, FOMO (Fear of Missing Out), and lack of discipline.
There are a lot more reasons behind the failure in the stock market. I have listed out the common reasons why individuals may not succeed in the stock market:
Lack of Education:
Most traders hesitate to learn even ABCD in the stock market, but we want to take the IAS examination & we expect to succeed in that Examination. How Silly it is.
People jump into the stock market without knowing the basics of how it works. Successful traders/ investors spend time educating themselves and implementing what they learn.
Emotional Decision-Making:
Human Emotions like fear and greed often drive people to make compulsive decisions.
Fear may lead to selling stocks during market downturns, while greed can make them hold on to unrealistic profits. Emotional decisions can result in losses.
Overconfidence:
Overconfidence can lead to taking excessive risks more than what you afford to lose.
Believing that you can consistently beat the market without a solid strategy can result in significant losses.
It is essential to remain humble, acknowledge the unpredictability of the stock market, and maintain strict stop loss.
Lack of a Proper Strategy:
Some people enter the stock market without a trading strategy. Trading without a plan can lead to confusion.
Having a strategy and sticking to it is crucial for success. It is also important to implement the strategy in paper-trading websites.
Ignoring Risk Management:
Some investors put all the capital into a single stock without diversification, or neglect to use stop-loss orders.
Effective risk management is essential to protect your investments. Always try to diversify your portfolio between multiple sectors.
Short-Term Focus:
Many people focus on quick profits and engage in short-term trading without considering long-term goals.
Short-term trading can be riskier, and constantly focusing on quick gains may not lead to consistent success.
So, keep in mind the above reasons and be a successful trader in Stock Market.
Happy Trading.
See lessHow Much Tax Do You Need To Pay When Selling Stocks In India?
Taxation in Stock Market in India When you sell stocks in India, you must pay various taxes, depending on the gains you have made, the duration for which you hold the stocks, and your total income. The following are the types of taxes you have to pay after selling stocks in India: 1. Tax on Short-TeRead more
Taxation in Stock Market in India
When you sell stocks in India, you must pay various taxes, depending on the gains you have made, the duration for which you hold the stocks, and your total income.
The following are the types of taxes you have to pay after selling stocks in India:
1. Tax on Short-Term Capital Gains (STCG):
If you sell stocks within one year of purchasing, the profits on that stocks are considered “short-term capital gains“.
These gains are taxed at your applicable income tax rate. Short Term Capital Gain Tax covered under section 111A is charged at 15% on the profit.
2. Tax on Long-Term Capital Gains (LTCG):
If you hold stocks for more than one year before selling, the profits are considered as long-term capital gains.
As of 2023, LTCG is taxed at 10% for gains from stocks & mutual funds. However, tax percentage goes to 20% when you sell realestate related stocks.
3. Securities Transaction Tax (STT):
In India, Securities Transaction Tax (STT) is a tax levied on the value of the securities transacted. It is automatically deducted by the stock exchange at the time of the buying/selling a stock.
STT is applicable to both buying and selling stocks, this tax was deducted at the time of transaction itself.
4. Tax on Dividends:
In India, dividends received from stocks are currently tax-free in the hands of the recipient.
However, the company distributing the dividend pays a Dividend Distribution Tax (DDT).
5. Tax Deduction at Source (TDS):
If your total income from stock trading, including gains, exceeds a certain threshold, the broker may deduct TDS when you withdraw funds from your trading account.
You can claim a refund if your actual tax liability is lower.
6. Tax Saving Options:
You can potentially reduce your tax liability by utilizing investment options like the Equity Linked Savings Scheme (ELSS) and taking advantage of tax deductions under Section 80C of the Income Tax Act.
7. File Your Tax Returns:
Whether you have made gains or not, it’s essential to file your income tax returns if you’ve undertaken stock trading during the financial year.
See lessBest Penny Stocks to Invest Under Rs. 20?
List of Best Penny Stocks under Rs, 20 & Low P/E Name CMP Rs. P/E Mar Cap Rs.Cr. Div Yld % NP Qtr Rs.Cr. ROCE % Reliance Home 2.15 0.02 104.29 0.00 6.43 257.70 Modern Steels 18.96 1.39 26.09 0.00 -0.35 202.86 Press. Senstive 7.40 1.43 109.79 0.00 38.44 109.67 Harshil Agrotech 2.54 2.63 2.74 0.0Read more
List of Best Penny Stocks under Rs, 20 & Low P/E