How to Earn Money by Investing in the Share Market?

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The stock market has always been risky. The common man does not understand the fluctuations in stocks. But, the market definitely attracts record-high and consistently large returns. The stock market is the only means by which large capital can be created with less capital because the stock market has given the best returns in a long period. If you also want to invest in the stock market but fear losing money, then there is a way to earn risk-free.  We are telling some special ways to earn money by investing in the stock market, with the help of which good profits can be made without risk.

18 percent return this year

Dhruv Desai, director, and CEO of TradeBulls says that the stock market has given 18 percent returns this year. So new investors can start with some small capital in the market. The market is constantly witnessing a boom. So it is not too late to invest. Long-term investment in good stocks is always beneficial.

Investment is tax-free

If there is no tax on earnings after 1 year in the stock market, then investing in equity is a good option. However, one should not invest only to avoid tax and it should be seen as a good investment tool.

Invest in business

 Investors should not invest in share prices but in the company’s business. IIFL’s  Abhimanyu Sofat said, “Understanding any business improves the understanding of the company. This makes investment decisions easier.” For example, Warren Buffett’s primary philosophy of investing is that he invests only in companies whose business is understood. In 1988, He invested $ 1 billion in Coca-Cola. Then Coca Cola for 30 years gave a rate of 10 percent.

Make distance from these shares

In the stock market, you will find many such shares, whose price is very low. You will get many shares prices around or less than one rupee. Seeing such shares, many people fall into greed. Investors feel that a 50 paise stock can be worth one rupee in a few days. So, their investment will be doubled in some days. But it is important for you to know that if these shares are getting at such low prices today, then the reason is that their companies are not strong fundamentally. In such a situation, it would be better that you stay away from such stocks.
How to Earn Money by Investing in Share Market - NewsTrends

Invest only when understood

Often you have heard your friends and acquaintances say that they have earned a lot of money in futures and options. Such people also say that by working on margin, you can make more capital for less money, but if you want to protect yourself from risk, then do not fall into these mistakes. These methods should be used only when you have a piece of very good knowledge about them. Then you become know of both their loss and profits.

Information will increase, and risk will decrease

If you do even the smallest thing, then do a thorough investigation about it. If you go to buy vegetables from the market, then you have a complete bargain. But when you invest money in the stock market, you do so only on the advice of some acquaintance or broker. It is important that you increase the information related to the stock market. As your information increases, you will find that your risk will decrease.

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