Everyone invests in shares for building wealth in the long term. While some think it is risky, others believe that putting money in the right shares for an extended five to 10 years can provide inflation-beating returns and prove a better investment option. You can also have short-term investment strategies while investing in shares to earn profit.
The Indian Share Market has a long history, with the Bombay Stock Exchange being the oldest in Asia. It started in 1854 and is popular even today. The BSE Sensex remains one of the parameters to measure the strength of the Indian economy and finance. The National Stock Exchange was formed in 1993, leading to an automated trading environment within a few years. You trade and issue shares here.
Financial instruments
The key financial instruments traded included Bonds, Shares, Derivatives, and Mutual Funds. Under Mutual Funds, you can invest in a lump sum or through a Systematic Investment Plan. A lump sum investment is when you invest a significant amount of money in a particular Mutual Fund scheme. SIP entails the investment of smaller amounts monthly.
Both these strategies have a fair share of benefits. People prefer lumpsum investments as there are lesser variables involved with higher returns. You can also use the Lumpsum Investment Plan calculator to calculate the returns.
Benefits
The Lumpsum calculator provides you with estimated returns for the entire investment period. You can calculate your investments monthly, quarterly, and half-yearly using this tool. It is convenient and simple to use and offers accurate results based on the variables entered. Since Mutual Funds involve market risks, you cannot get 100% accuracy.
Formula
The calculator uses a compound interest formula A = P (1 + r/n) ^ nt, where:
A = estimated returns
P = Present value of investment
r = estimated rate of return
t = tenure
n = number of compound interests in a year
SEBI
Investing in the Share Market is risky. Hence, there is a regulator to protect investors. The Security and Exchange Board of India mandatorily oversees India’s secondary and primary markets since 1988, when the Government of India established it as the regulatory body of stock markets. Within a short time, SEBI became an autonomous body through the SEBI Act of 1992.
SEBI is responsible for market development and regulation. It regularly comes out with comprehensive regulatory measures to ensure investors benefit from safe and transparent dealings in securities.
Objectives
The primary objectives of SEBI include protecting investors’ interests in stocks, promoting Stock Market development, and regulating it. You can invest in India’s primary and secondary stocks through a Demat and Trading Account, compulsory for all investors.
Conclusion
You can use the earnings from the Stock Market Investments as secondary income and fulfil your needs. It is essential to gain knowledge about them by approaching the right financial advisor and getting tips to achieve your investment goals.
