Direct equity investing is all about long term growth. When one buy stocks, he/she becomes part owners in that company. This way one becomes eligible to share both profit & loss made by company.
Investors prefer equity because no other investment option promises long term growth as high as equity. As a result, equity also beats inflation very conveniently in long term. When you invest directly into the Stocks or Funds, listed on major exchanges, you end up saving a commission amount you would rather pay to an intermediary.
Laverne provides you golden gate to invest directly into the Equity shares and mutual funds from Australia, India and other International Markets. The spread across these different asset classes (your asset allocation) will vary depending on your risk profile.
The ability to raise your cash is one of the key advantages of investing in the stock market. Over time, while the prices of individual stocks rise and fall regularly, the stock market continues to rise in value. Investments in stable businesses which are able to expand tend to make investors profits. Likewise, investing in many different stocks will help build your wealth by leveraging growth in different sectors of the economy, resulting in a profit even if some of your individual stocks lose value.
Some stocks provide income in the form of a dividend. While not all stocks offer dividends, those that do deliver annual payments to investors. These payments arrive even if the stock has lost value and represent income on top of any profits that come from eventually selling the stock. Dividend income can help fund a retirement or pay for even more investing as you grow your investment portfolio over time. Regular income payments or dividends are paid by listed companies from profits. This gives you an ongoing income stream. Not only that, but as a company’s share price is increasing, so can the dividends, because the dividends payable are calculated as a percentage of the value of the company.
For investors who put money into different types of investment products, a stock market investment has the benefit of providing diversification. Stock market investments change value independently of other types of investments, such as bonds and real estate. Holding stock can help you weather losses to other investment products. Stock also adds risk to a portfolio, as well as the potential for large, rapid gains, helping investors avoid risk-averse or overly conservative investment strategies. Investment performance is cyclical and although there will always be peaks and troughs; a diversified investment portfolio allows you to balance short-term troughs with cyclical peaks in performance ultimately smoothing your investment performance over time.
Buying shares of stock means taking on an ownership stake in the company you purchase stock in. This means that investing in the stock market also brings benefits that are part of being one of a business’s owners. Shareholders vote on corporate board members and certain business decisions. They also receive annual reports to learn more about the company. Owning stock in the company you work for can be a way to express loyalty and tie your personal finances to the success of the business as a whole.
Technical development has influenced every aspect of modern living. The stock exchanges are also using various technical advancements to provide greater convenience to the investors. The trades are all executed on an electronic platform to ensure the best investment opportunities to investors in an open environment. In addition, broking service providers offer online share trading facilities that make investing convenient, because investors can place their orders through a computer from the comfort of their homes or offices.
Any advice provided by Laverne is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.