Business Taxperts

Share and Equity Investments

Share and Equity Investments Services

Equity investment is the money, invested in a company by purchasing shares in the stock market. These shares get traded on stock exchange. Similarly, Share Investment means, buying the shares of a company, keeping them for a while and as the company grows, value of holdings increases, giving you gains.

For investing in IPOs, you will need a DEMAT account. Do you have a DEMAT account? No? Then let us help you create one, and you’ll be ready to invest in Shares and Equities easily!

Why do we need to invest in shares/equity?

  • Power of compounding
  • Strong long-term investments
  • High returns in a short period
  • Better gains against inflation
  • Easy and quick
  • Invested money doesn’t lose its value like that in cash
  • Tax benefits
  • Diversification of funds

What are the different types of Share/Equity Investments?

  1. Equity Mutual Fund Investments
    Mutual funds are investment options wherein capital from various investors is collected, pooled and invested in varied equity and debt instruments.
    Based on their market capitalization, equity mutual funds can be categorized as follows:
    (I)Large-Cap Equity Funds
    These funds are invested only in well-established large-cap companies because they have the potential to provide stable returns at low risk.
    (ii) Mid-Cap Equity Funds
    These equity mutual funds are invested in stocks of mid-capital companies. They make for the most beneficial investment options as the risk-reward ratio is fairly balanced in this case.
    (iii) Small-Cap Equity Funds
    These are mutual funds invested in the shares of companies that have small market capitalization and are relatively more volatile than other categories of funds.
    (iv) Multi Cap Funds
    These mutual funds come with the liberty to invest in different sectors and market capitalizations.
  2. Equity Futures
    These are investment instruments where the investors “have” to purchase or sell the underlying assets at a predetermined price and a predetermined rate. Equity futures usually come with an expiry period of three months.
  3. Equity Options
    Equity options are similar to the futures wherein, the parties involved are not legally obliged to follow-up on their agreement.
  4. Arbitrage Schemes
    Arbitrage, concerning the stock market, refers to the process of buying and selling securities in various exchanges simultaneously to gain from the difference in market price.
  5. Alternative Investment Funds
    Individuals can choose to invest in equity instruments via alternative funds which comprise of different pooled in investment funds that majorly invest in hedge funds, venture capital, managed future, private equity, etc.

As we discussed the various types of Investments concerning equity and shares, we would like to conclude that, you can get unexpected gains without even working constantly. Share and Equity Investments are the new smart choice for timely gains.

Do you need to know more about Share and Equity investments? Contact us and get FREE consultancy about investment in shares and equities!