Investment has different meanings in finance and economics. Finance investment is putting money into something.with the expectation of gain.
(prHWY.com) February 22, 2013 - indore, India -- Investment :-
Investment has different meanings in finance and economics. Finance investment is putting money into something
with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount,
as well as security of return, within an expected period of time. In contrast putting money into something with an
expectation of gain without thorough analysis, without security of principal, and without security of return is
gambling. Putting money into something with an expectation of gain with thorough analysis, without security of
principal, and without security of return is speculation. As such, those shareholders who fail to thoroughly analyze
their stock purchases, such as owners of mutual funds, could well be called gamblers. Indeed, given the efficient
market hypothesis, which implies that a thorough analysis of stock data is irrational, most rational shareholders
are, by definition, not investors, but speculators.
What is Value Investing?
Investing in stocks which are undervalued or not overpriced or which are below there actual cost. As we proceed further we will see how start investing in such stocks.
Benefits of Investing in Stock Market for Long term :-
1) Investing for long term in stock market consist of low risk with high returns, provided you invest in value and
growth stock. It is proved by many analysts and noted investors like Warren Buffet that value investing gives you
excellent returns and also it is verified and confirmed by companies through there past annual reports and prices.
2) No need to worry for daily ups and downs in share prices or market volatility.
3) No need to monitor daily share prices sitting hours and hours in front of stock market, watching news etc. It's
not required daily but periodically you can update yourself about your stocks through news etc to track your stock
prices.
Diversification
In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up
and down in perfect synchrony, a diversified portfolio will have less risk than the weighted average risk of its
constituent assets, and often less risk than the least risky of its constituent. Therefore, any risk-averse investor will
diversify to at least some extent, with more risk-averse investors diversifying more completely than less risk-averse
investors.
Diversification is one of two general techniques for reducing investment risk. The other is hedging. Diversification
relies on the lack of a tight positive relationship among the assets' returns, and works even when correlations are
near zero or somewhat positive. Hedging relies on negative correlation among assets, or shorting assets with
positive correlation.
With the help of our research on economy, and after economic reform of Indian Govt. some of Sector highlighted
further in report which can give a batter return on portfolio. After economic reform and other policies below are
the sertorial indices, which can be the reason of major growth in next coming months.
Major Sectorial Indices % Return in 365 day
BANK NIFTY 20.44
CNX AUTO 23.58
CNX ENERGY 4.84
CNX FMCG 42.88
CNX PHARMA 23.73
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