Nowadays, as the world is changing, the ways of earning are also changing, where earlier people used to earn money only by working offline, at that time there was no such thing as online, but today the same people earn money by working both online and offline. You can also earn money online. There are many benefits of earning money online.
There are many ways to earn money online. One of them is the way by which you can earn money online and that is the way of investment.
Investment is a way by which everyone can earn money. Till today we were understanding that only professional people can invest money in big companies, but now it is not so, now everyone can invest money in share market and earn money from online stock markets.
what is investment?
Those people who do not know what investment is, then let me tell those people that investment means putting your money in such a place so that we can get more money than the money invested in the future and the more money we get, we call it the return we get on our investment.
what is share market?
Share Market is a market where shares of many companies are bought and sold.
Buying a share in a company means becoming a shareholder in that company. In which company any investor buys shares, he becomes a shareholder in that company. This stake depends on the number of shares purchased. Brokers do the work of buying and selling shares.
This is a place where some people either earn a lot of money or lose all their money.
What is shares?
Share means "Part", if understood in easy language, then when a person or institution sells the ownership of his company to increase investment in his company, we call it share.
How does the stock market work?
The stock market works on the formula of demand and supply. Therefore, in both the cases the value of the shares goes up or down.
When the demand for a company's product increases, then the stock price of that company also increases and when the demand for that company's product decreases, the stock price of that company also starts falling.
How does the money invested in stocks grow?
When you buy shares of a company with your money and that company grows in the future, then your money also increases along with it.
But there is one more thing when that company goes into loss then your money also gets reduced.
How can we also earn money by investing in companies?
You can invest money in companies in two ways, the first way is to buy shares of the company directly and the second way is to invest your money in mutual funds.
what is mutual fund?
In mutual funds money is collected from various investors and this money is invested in shares and bond markets. Units are allotted to the investor for his money. Now in proportion to these units, mutual fund houses distribute the profits of buying and selling shares or bonds among the fund (unit) holders.
How does mutual fund work?
The amount deposited from the lost people is invested in the stock of different company, so if the shares of one company fall, then these people recover that money from the profit from the other company. When money is returned, these companies give you money after deducting their 2% to 3% charge.
How to Invest in Mutual Funds?
You can invest in mutual funds in two ways, one is SIP which is called Systematic Investment Plan and the other is Lump sum.
However, market risk also affects mutual funds. But still, the benefit of compounding is quite good for long-term investors by investing in it.
What to look for before buying shares?
•The financial position of the company is good.
• The company should not have debt or a lot.
• Promoters of the company should have good reputation in the market.
• Indicators of the company such as PE Ratio, EPS, Debt to Equity Ratio, etc.
Best platform to invest your money
Platform for mutual fund
Zerodha, Groww, Kuvera, Paytm Money Mutual Funds App, ETMoney, Groww are some of the platforms from where you can invest your money in mutual funds.
Platform for share market
Charles Schwab, Fidelity Investments, TD Ameritrade, Robinhood, E-Trade, Interactive Brokers, Merrill Edge, Ally Invest, Firstrade are some of the platforms where you can buy shares of the company with your own money.
Final word
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