In a country where women are traveling to the moon, going on solo expeditions, and independently climbing up their career ladders, breaking all stereotypes, women must take care of their savings as well, for a financially independent future. In general, women have always been smart when it comes to handling money, through fixed deposits and gold investments. But when it comes to investment in the stock market, women have been taking the backseat for a while, until now.
Over the past two years, the scenario has changed drastically as more and more women are getting involved in equity investments in India. Women are nowadays interested in grasping as much knowledge as they can about stock market investments. In the case of fixed deposits, there is a reduction in the capital due to negative real returns, which is not the same in the case of equity investments. Here’s what women should know before starting equity investments.
How to get started on direct equity investments:
A basic understanding:
A basic understanding of the stock market world and how equity investments work is mandatory before you embark on your equity investment journey. Knowledge about the companies that are listed on the stock exchange, the types of stocks to invest in, and their prices are important. Also, there are certain risks associated with equity investments. So it is advisable to get in touch with an advisor and acquire all the necessary information regarding equity investments to avoid risks.
Open a Demat account and trading account:
Before investing in equity, make sure to open a Demat account along with a trading account. The Demat account can be opened by selecting a Depository Participant (DP), of your choice. However, you can open a free trading account with no-frills online brokerages, enabling you to handle all your equity investments, with the help of this account.
Allocate your assets carefully:
Depending on how much risk you are willing to take and what are your long-term goals, make sure that you have a clear idea about what percentage of each asset should be invested.
Strategize your investments:
Before you start investing in equity, make sure to have a planned investment strategy. Quality investing is the best strategy, for starters. Invest in well-settled and experienced companies that have a high-performance rate with high capital and a reliable and consistent growth record. This will avoid any risk of loss.
Plan your investment over a stretched period:
Volatility is an important aspect of the stock market world. Owing to increasing volatility, the stock prices may fluctuate regularly. So you should plan your investments in a way that they are spread out over a stretched period. Make sure to invest a definite amount weekly or monthly or quarterly.
Keep your portfolio compact:
Make sure that your equity portfolio has a limited number of stocks, not exceeding 15. This way, it’s easy for you to keep a track of all the stocks simultaneously.
Keep a track of your investments:
You need to keep yourself updated with the stocks that you have invested in, by going through their reports monthly, quarterly, and annually. Keep a regular track of all your investments so that you are aware of all the changes in the companies and their stock values and make the right decisions at the right time.
Conclusion:
Now that you are well acquainted with all the pointers that are necessary for equity investments in India, you can start investing your savings in something fruitful, with positive real returns. Be ready to tick that vacation off your bucket list because with the right kind of investment, involving zero or very low risk, and with proper guidance, you are certainly about to get richer.
Read also:- Learn Share Market Basics Online In India
