Equity is among the most popular instruments to invest in today. Everyone wants to be a trader, and several investors who venture into the stock market do so with the intention of earning huge gains. While intentions may be positive when you make your foray into the stock market today, the reality may hit you quite negatively. If you wish to enter the stock market to invest, you should be educated about the companies of which you buy stock, as well as about market movements.
With the wide range of investments, and the innovative modes of investment to match every investor’s unique requirements and life goals, how does any investor choose what is best for them? As many kinds of investments as there are, it can be confusing to choose only some. However, if you, as an investor, are crystal clear about your risk appetite and goals, you can rest assured that you are making appropriate investment decisions. Your time horizon also plays a role in investment, whether you are choosing the stock market today after you open a demat account or a ULIP which has dual investment and insurance benefits.
These days, digital tools play a key role in investment, right from the way you invest to selecting the right investment instruments. Processes are then carried out online and from online trading to opening a bank fixed deposit, you can do everything from the convenience of your home. This is why calculator use in the selection process of any investment has become popular and rampant. With any investment calculator, you can enter your details of amounts you wish to invest and calculate returns, either for particular tenures of investment with certain instruments like a ULIP/SIP, or in general, with equity instruments, just to estimate what you may earn on a specific principal amount.
The first thing to know about investment in equity and online trading is that nothing is a sure thing. Markets, by their very nature, are volatile, and stock values tend to fluctuate when you least expect them to. So how can calculators predict returns? Whether you invest in direct equity today, or allocate your wealth to an upcoming IPO, you would likely do some research on companies before you invest. If you conduct your research in a planned way, you can see, from historical returns of a stock, how it has performed in the past. Based on this, you may gauge your returns. Although this is not something you can totally depend on, it gives you a clue as to how much of your wealth to invest in equity and how much to other modes of investment.
To invest in the stock market today or to subscribe to any upcoming IPO, you should first open a demat account. Any online broker with a solid reputation will do this for you quickly. Besides using an investment calculator to take a somewhat calculated guess of the capital you should invest in your equity-linked instruments, you can also know how much you will gain from these based on your tenure and past historical data. Also, if you have invested in equity in the past and wish to do so again, you may select higher amounts to invest based on data that you have from your past equity investment.
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