SOMETHING ABOUT STOCKS AT MARKET
It is very important to make a proper successful portfolio to earn maximum profit. This task is not very easy for any individual. The choice is present for everyone to make his or her portfolio. Of any portfolio individual have a right to buy different stocks and manage his or her risk strategy. Everyone wants to set his or her portfolio with minimum risk for maximum profit.
Every person has a choice to select his investment options in the market. He can operate single or by any company. These companies are called mutual fund companies.
In mutual fund, company has a responsibility to invest your money in different ways. They have trained and expert member for a decision and have a verity to invest the money of investors in different ways. Than this company has a responsibility to invest your money in different stocks. This company can invest your money in different financial instruments, which can share, bonds, gilts, real estate investment or some long-term investments
Some properties of mutual funds are given below to explain it more in simple words.
1. Professional skills
2. Diversity
3. Choice
4. Convenience
These above four properties of mutual funds are the characteristics of any person to attract towards mutual funding concept.
If we talk about the single investment from a single individual than the risk, matter is high and a single person cannot diversify as the company can do.
HOWEVER, with single investment person has a facility to invest his money where he wants and no fee expense of the company.
If any individual purchase the share in the stock market he has become the member of that market and some other rules and regulations are associated with him. Some of them are given below.
OWNERSHIP
When you buy any stock (share), you become an owner of that company of which shares have bought. This ownership will raise same rights and responsibilities towards you. You become the owner of the company at the extent you bought shares and have voting rights when some decision time for that particular company.
The company is under control by you within your ownership percentage and the loss is associated up to that percentage. Dividend distributed to all owners up to their own over a fixed interval of time, these dividends distributed from the profit of the company.
Increase in value
In investment, you can enjoy the increase of your investment. This can happen to increase in company profits and value. If the value of the company is increase than the dividends, also increase. The growth and the value of a company are depending on the company’s performance in past years and the coming future years considered in valuing the company.
Risk
Risk is always associated with all investments. If there is chance of increase of profits also an equal chance for the loss in the future. If you talk about the potential increase in the value of an investment, here the chance of a decrease in the value of investment lay. The risk of dividends also lay here if the company does not perform well than may be no dividends awarded with investments.
