Security with investing in Shares.Something seems strange just thinking about it. Traditional experience says that investing in stocks carries the most risk. How can one make such investment safe? However it is possible to remove market risks in the case of investing in shares. You can strengthen your investment process by adopting some simple techniques. Keep in mind that the purpose of investing in shares is to earn money for a specific period of time, not to make huge profits overnight or in a week. Let us discuss some technologies through which investment can be made relatively safe.
Select stocks that pay higher dividends
Preference should be given to shares paying relatively higher dividends. Dividend earnings are calculated by dividing the share price by the dividend. For example, in the year 2008-09, Indian Overseas Bank paid a dividend of Rs 4.5 per share and its current price is Rs 92. Earnings from dividends are about 5 percent. Dividends are tax-free, so it can be compared to fixed deposits of banks. Sometimes when you are unable to sell your shares due to market conditions, you may receive some cash as final dividend or interim dividend. Some stocks paying higher dividends include G.N.F.C., Andhra Bank, Vijaya Bank, Castrol and Hindustan Unilever. What is worth noting is that the amount of dividend depends on financial performance and cash needs.
Low P. B. V. Shares with
Select stocks whose price to book value (p.B.V.) Be relatively less. The book value is calculated by dividing the equity share capital and reserves and the number of equity shares outstanding in the additional amount. Results obtained by dividing by book value in market value p.B.V. Happens. Usually P. of high-rise companies.B.V. There are more too. Although there are occasionally some companies that have good fundamentals, but P.B.V. Are less. If a company’s P.B.V. If it is less then it means less than capitalization network. This means that the internal price of the stock is higher under normal circumstances. Low P.B.V. Some of the companies include Federal Bank, Syndicate Bank, Karnataka Bank, G.S.F.C., Gujarat Alfaki and Shipping Corporation etc. are included. Investors more P.B. V. Companies with this should generally be avoided, as it means that the company’s network is much lower than market capitalization.
Avoid shopping at the lowest or highest level
Don’t invest at 52 weeks of top or bottom. A high priced stock may start falling after reaching the top. It is possible that after reaching the top, the prices of a stock may increase only to a certain extent. Similarly, when the price of a share is at its lowest level, no one knows how much further it will go down.
Buy shares of well-managed companies Sometimes investors invest in such companies out of greed. Whose management is not good. But even if the returns are slightly lower, it is advisable to choose only shares of well-managed companies. Here your capital investment is a little safe. In companies with good management H.D.F.C. Infosys, Wipro, N.T.P.C., Mahindra & Mahindra, State Bank of India etc. are included. After investing, review your investments from time to time and proceed according to your performance.
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