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The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.

It's actually pretty simple: investing means putting your money to work for you. Essentially, it's a different way to think about how to make money. Growing up, most of us were taught that you can earn an income only by getting a job and working. And that's exactly what most of us do. There's one big problem with this: if you want more money, you have to work more hours. However, there is a limit to how many hours a day we can work, not to mention the fact that having a bunch of money is no fun if we don't have the leisure time to enjoy it You can't create a duplicate of yourself to increase your working time, so instead, you need to send an extension of yourself - your money - to work. That way, while you are putting in hours for your employer, or even mowing your lawn, sleeping, reading the paper or socializing with friends, you can also be earning money elsewhere. Quite simply, making your money work for you maximizes your earning potential whether or not you receive a raise, decide to work overtime or look for a higher-paying job.
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There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, or real estate (among many other things), or starting your own business. Sometimes people refer to these options as "investment vehicles," which is just another way of saying "a way to invest." Each of these vehicles has positives and negatives, which we'll discuss in a later section of this tutorial. The point is that it doesn't matter which method you choose for investing your money, the goal is always to put your money to work so it earns you an additional profit. Even though this is a simple idea, it's the most important concept for you to understand.

Types of investment:

We've already mentioned that there are many ways to invest your money. Of course, to decide which investment vehicles are suitable for you, you need to know their characteristics and why they may be suitable for a particular investing objective. Bonds Grouped under the general category called fixed-income securities, the term bond is commonly used to refer to any securities that are founded on debt. When you purchase a bond, you are lending out your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out. The main attraction of bonds is their relative safety. If you are buying bonds from a stable government, your investment is virtually guaranteed, or risk-free. The safety and stability, however, come at a cost. Because there is little risk, there is little potential return. As a result, the

rate of return on bonds is generally lower than other securities. (The Bond Basics tutorial will give you more insight into these securities.)
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Stocks When you purchase stocks, or equities, as your advisor might put it, you become a part owner of the business. This entitles you to vote at the shareholders' meeting and allows you to receive any profits that the company allocates to its owners. These profits are referred to as dividends. While bonds provide a steady stream of income, stocks are volatile. That is, they fluctuate in value on a daily basis. When you buy a stock, you aren't guaranteed anything. Many stocks don't even pay dividends, in which case, the only way that you can make money is if the stock increases in value - which might not happen. Compared to bonds, stocks provide relatively high potential returns. Of course, there is a price for this potential: you must assume the risk of losing some or all of your investment. (For additional reading, see Stock Basics tutorial and Guide to Stock Picking Strategies.) Mutual Funds A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are pooling your money with a number of other investors, which enables you (as part of a group) to pay a professional manager to select specific securities for you. Mutual funds are all set up with a specific strategy in mind, and their distinct focus can be nearly anything: large stocks, small stocks, bonds from governments, bonds from companies, stocks and bonds, stocks in certain industries, stocks in certain countries, etc. The primary advantage of a mutual fund is that you can invest your money without the time or the experience that are often needed to choose a sound investment. Theoretically, you should get a better return by giving your money to a professional than you would if you were to choose investments yourself. In reality, there are some aspects about mutual funds that you should be aware of before choosing them, but we won't discuss them here. (You can, check out the details in the Mutual Fund Basics tutorial.) Alternative Investments: Options, Futures, FOREX, Gold, Real Estate, Etc. So, you now know about the two basic securities: equity and debt, better known as stocks and bonds. While many (if not most) investments fall into one of these two categories, there are numerous alternative vehicles, which represent the most complicated types of securities and investing strategies. (Go through our Forex Walkthrough which goes from beginner to advanced.) The good news is that you probably don't need to worry about alternative investments at the start of your investing career. They are generally high-risk/high-reward securities that are much more speculative than plain old stocks and bonds. Yes, there is the opportunity for big profits, but they require some specialized knowledge. So if you don't know what you are doing, you could get yourself into a lot of trouble. Experts and professionals generally agree that new investors should focus on building a financial foundation before speculating. (For more on how levels of risk correspond to certain investments

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Equity Kotak Securities caters to both primary and secondary market under the equity segment. The primary market provides the channel for creation and sale of new securities, while the secondary market deals in securities previously issued. The Stock market or Equities market is where listed securities are traded in the secondary market. Currently more than 1300 securities are available for trading on the National Stock Exchange (NSE) and over 6000 on Bombay Stock Exchange (BSE). . Why Equity? Many people are afraid of stock market investment due to the fear that a fall in stock market might jeopardize their financial security. However, we're aware that there's an element of risk in all investments. Holding cash in our bank accounts is considered to be very safe, but historically it has not always provided an adequate hedge against inflation. So, cash cannot be considered as the most effective for long-term investment. Clearly, Equity investment can provide excellent long-term returns, illustrated by the chart below:

The key to successful stock market investment lies in appreciating the long-term nature of the

returns and keeping away from worries of day-to-day uncertainties. Volatility is the reality of the stock market. A disciplined and informed approach will always help in taking control of your money. Kotak Securities always strives to keep its customers informed of all the stock market events to help you make an informed decision. Click here to visit our education section to learn more about equity. What instruments are supported by Kotak Securities Platform? Following are the various instruments that are available to trade through Kotak Securities: Shares - Equity Shares - Preference Shares Debentures - Partly Convertible Debentures - Fully Convertible Debentures - Non-Convertible Debentures - Warrants / Coupons / Secured Premium Notes/ other Hybrids - Bonds Units of Mutual Funds What are you? An investor or a trader? You can make money in equity market by investing or trading or both. However, to avoid disappointment of losing money, customers should make very prudent and informed decisions. "Investors" put their money into stocks for a long term. This is under the principle that over time, the underlying investment will increase in value, and the investment will be profitable. On the other hand "traders" take a proactive approach to their investing. They follow or predict a trend in the stock and use strategies like buy-low, sell-high and make profits. Though there is really no right or wrong type of stock trading, it is necessary for you to identify which type of trading is right for you. You can make a great amount of money either way; however, you must consider your time frame, risk, and how much work you want to put into it. While traders can make more money much faster, they are required to do more work and monitoring than the typical investor. Determine what type of trader you want to be, and then make sure that the people you take guidance from have the same goals as you. Ways you can buy Equity on Kotak Securities platform: Normal Order: All buy orders are normal orders. Sell orders placed without having shares in your demat account can be placed under normal. These are short sale orders and can be placed if sufficient

limits are available in the account. Limit Order: The order refers to a buy or sells order with a limit price. The investor specifies the price while placing the order. Market Order: The market order means buying or selling at the current market price Stop Loss Order: A Stop Loss Order is placed to minimize the losses. It allows the trading member to place an order, which gets activated only when the last traded price (LTP) of the share is reached or crosses a threshold price known as the trigger price. The trigger price will be quoted as per the risk you are ready to bear. AMO: AMO stands for After Market Order. It is a facility that Kotak Securities extends to its customers whereby they can place orders even after the trading hours of a particular day. There is a 10% price band for placing AMOs. This facility is available in the time slots mentioned below: Anytime between 3.30 p.m. to 1.00 a.m. Anytime between 4.30 a.m. to 9.00 a.m. BNST: Kotak Securities has introduced service of BNST i.e. Buy Now Sell Tomorrow where client will be allowed to sell the entire BUY quantity but the responsibility of any short fall in delivery will be clients' as it is not guaranteed by Kotak Securities. E.g. for BNST: Suppose you have bought 100 shares of EIH on T Day. The settlement day for this buy transaction is T+2 Day. You can sell these 100 shares of EIH under BNST either on T+1 Day or on T+2 Day. As this scrip is not in specified list of BNST, Kotak Securities doesn't guarantee the delivery of these shares. Initial Public Offering (IPO) An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Investing in IPOs is not complex anymore, Kotak Securities has made buying IPOs very simple. All you have to do is make one phone call, and that's all. No IPO application forms, no queues, simply pick the phone or log on to www.kotaksecurities.com and place your IPO order within seconds. We also provide with you with information on IPO News, forthcoming IPOs in India and a lots more. To start investing in IPOs, all you need to do is open an online trading account. Choose from our

wide range of accounts that suits your investment needs. These demos will demonstrate the process to invest in IPO online.

Assisted Trading Services In the world of ever increasing automation and digitization, we understand the customers' need for face to face communication. Thus for clients who believe in the value of personalised relationships, we provide the option of visiting our outlets and interacting with our staff for any of their investment requirements. If you are a customer who prefers Assisted Services you get many benefits that help to simplify and personalise the process of share trading. Call and Trade Facility: You can avail the facility of calling and trading, which allows you to avail our assisted service on the phone. You can directly contact the experienced dealer, and place instant orders over phone. Dedicated Dealer: A qualified equity dealer is assigned to help you manage your account. Our expert dealers help you to plan your finances so that you can achieve your financial goals. Personalized Relationship Manager: In addition to your dedicated dealers, you have a personalized relationship manager who takes care of all your day to day requirements. He can help you stay updated on various options in equity and non-equity investments and guide you through your investment decisions, as well as handle any general questions relating to your account. Access to Latest Research Reports: We believe that making the right investment decision requires understanding and analysis of economic and company specific information. Our dedicated research team takes care of company, micro, and macro level economic data and generates insightful research reports that help you take informed decisions. SMS Alerts: Smart SMS Alerts from Kotak Securities ensure that you stay connected to the market, no matter where you are. You can choose from various types of SMS Alerts, depending on your needs, and stay up to date on the latest developments in the market. Cheque Pick-up/ Drop: If you are availing of Assisted Services, you will have the exclusive benefit of cheque pick-up

and drop at your door step at no extra charges. In addition to this, you can even get physical copies of contract notes delivered at your door step, so your effort is minimized in placing trades. Low brokerage rates: Competitive brokerage rates and low account maintenance charges ensure that you can focus on investing your savings and growing your profit, while Kotak Securities helps in lowering your investment costs. Get the Twin advantage: Trade with the twin advantage feature in your Kotak Securities Trading account for additional exposure on your margin money. This feature gives you added exposure up to 75% of margin against the value of the stocks in your Demat Account plus 4 times exposure on your margin (cash balance in your trading account) allowing you to trade larger volumes. However, please note exchange prescribed margins shall be collected, wherever required.However, please note exchange prescribed margins shall be collected, wherever required. For all your trading account related queries refer Online trading account FAQs Kotak Securities has a dedicated market research team that gives you comprehensive stock research reports for more informed investment decisions.

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