JUN 3, 2020 By : ATHUL RAJEEV, VENTESKRAFT.
In this blog we will go through about investor awareness. It improve the financial markets, products, concepts and risks. Financial literacy helps an investor to make an informed judgment or awareness about investments. Investor awareness by keeping in mind the specific goals of investing.Stock market corrections have affected the trust of investors.
When stock market becomes unreliable people get doubtful or awareness about information they receive that affect stock market participation. In this reason many potential investors do not invest in the stock market because of their limited information on stocks.They do not understand the operations and different pricing strategies of the stock market.
India has always been a nation of savers, but for the growth of the economy. It is important to channel these savings into productive capital via the capital markets. While volumes in daily trading of Indian markets grown substantially over the last two decades, it is largely from derivative trading that this growth has been derived.
For what reason would it be a good idea for one to invest?
However, the investor aware is the most important in the stock market, particularly in India. Therefore, this study aims to attempt the investors’ awareness about the stock market investment. One needs to investor to win return on your inert assets generate a predefined aggregate of cash for a particular objective in life make a provision for an unsure future. One of the critical reasons why one needs to investor shrewdly is to meet the expense of Inflation. Inflation is the rate at which the average cost for basic items increments.
The average cost for basic items is just what it expenses to purchase the products and ventures you to live. Inflation or awareness makes cash lose esteem since it won’t purchase a similar measure of a decent or an administration later on as it does now or did previously.
What care would it be advisable for one to take while investing?
- Acquire composed records clarifying the investment
- Peruse and see such reports
- Check the authenticity of the investment
- Discover the expenses and advantages related to the investment
- Survey the risk-return profile of the investment
- Know the liquidity and well being parts of the investment
- Find out on the off chance that it is proper for your particular objectives
- Contrast these subtleties and other investment openings accessible
- Analyze in the event that it fits in with different investments you are thinking about or you have effectively made
- The arrangement just through an approved intermediary
- Look for all illuminations about the intermediary and the investment awareness
What safety measures must one take before investing in the stock markets?
Here are some helpful pointers to hold up under at the top of the priority list before you invest in the markets:
Ensure your merchant is enlisted with SEBI and the exchanges and don’t manage unregistered intermediaries.
Guarantee that you get contract notes for every one of your transactions from your representative inside one working day of execution of the exchanges.
All investments convey risk or something to that affect.
Investors ought to dependably know the risk that they are taking and invest in a way that coordinates their risk.
On the off chance that your monetary guide or merchant encourages you to invest in a company you have never known about, be mindful. Invest some energy looking at about the company before investing.
Try not to attracted by declarations of incredible news reports, about a company.
Do your own examination before investing in any stock.
Try not to be attracted to stocks dependent on what a web site advances, except if you have done a satisfactory investigation of the company.
Investing in exceptionally low estimated stocks or what are known as penny stocks does not ensure significant yields.
Be mindful about stocks which demonstrate a sudden spurt in cost or trading activity.
