WHICH ARE THE BEST INVESTMENT STRATEGIES IN THE STOCK MARKET?
Looking at the uncertain scenario in the corporate world as well businesses which is currently prevailing, it has become necessary to not only earn and save money but also to invest money in such a way that it will give us the highest possible results. Keeping money in the Bank, buying jewellery and keeping it in the locker are the traditional ways which don’t bear as much returns now, as it used to do earlier. We are in the era of Stock Market/ Equity Market and the number of people turning towards the market to get returns on their hard-earned money is on a rise since COVID-19.
Investing in the market comes with its own set of risks and losses, and there is no sure shot way to avoid these. The best we can do is manage it in such a way that at the end of the period, we get the desired results.
For this, there are some basic investment strategies which we must keep in mind, before we invest in the stock market and choose one as per our feasibility:
- Sector-specific investing:
As the name suggests, this strategy involves investing in a specific sector of the market, about which we have sufficient knowledge. For example, you choose to invest only in the technology companies, medical care companies, etc.
- Value Investing:
This investment strategy focuses on investing in stocks which are under-valued according to the knowledge and understanding of the investor/ trader. It involves an in-depth understanding of the market and patience to wait till the stock reaches its true value.
- Dividend investing:
This is the simplest of investing. We can choose to invest in companies that have a track record of providing regular dividends to its shareholders. It is the safest investment option as it provides a steady source of income as long as the company pays dividend.
- Blue-chip investing:
In this strategy, the investors invest in the blue-chip companies- which are the large, financially stable, well-established companies that have a positive track record and might also be paying regular dividends. However, it is not entirely safe to solely invest in these stocks as the market is uncertain and you might loose your money.
- Index investing:
This strategy involves investing in a fund that tracks a specific market index, such as the Nifty 50 or the BSE Sensex, in order to gain exposure to the overall performance of the market.
These were some of the many investment strategies that are available for the investors in the stock market/ share market. However, it is very necessary to determine exactly which strategy suits you and which will be profitable for you as per your financial goals. Stakeindia, the oldest Stock Market/ Share Market institute in Nashik, Maharashtra is primarily involved in educating its students/ clients about the stock market and enabling them to decide their own investment strategy by giving appropriate guidance. stakeindiainstitute@gmail.com is how you can get in touch!
