Few people take up share trading to invest their hard-earned money, yet this process has never been so easy to make money by trading or investing in the share market. As we all know, the markets are prone to volatility, and the investments are exposed to high market risk. Some people who have invested in shares have become wealthy. They are known as the richest and successful investors in the world. Even though people had made millions through trading, it was never easy to make money by investing or trading in stock markets; besides, people have lost their savings by trading in the share market.
Types of Investment Portfolios
Several individuals adopt various investment portfolios based on their short-term or long-term goals. Some of the types of investment portfolios are discussed below –
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Growth
The growth portfolio is considered an investment portfolio to promote growth, where the investor takes higher risks in the money market. Moreover, it offers higher potential rewards and also comes with a higher potential risk.
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Value
A value portfolio can be described as taking advantage of purchasing cheap assets by using the valuation, which is functional when the recession hits the economy.
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Income
The income portfolio’s main objective is to secure a regular income from the Investments, instead of focusing on capital gains. It is focused on purchasing a stock based on its dividend, irrespective of its price appreciation or history.
Advantages of Investing in the Stock Market
Because of its popularity and its presence, we can also say that the share market is one of the potential places for investing money. Even though investing in stocks is very risky, it offers huge gains and huge losses to the traders. If the investor is ready to take risks, they can take advantage of the share market to secure their financial position and earn good money. Let us discuss a few benefits of investing in shares –
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Grow your Wealth
One of the main benefits of investing in stocks is to grow your money. Over time, the money invested in shares might increase in value, even though individual stock prices might fluctuate daily or at any time. Moreover, investing in stable companies can increase profits for investors. Investing in various stocks will help the investor build a wealth portfolio by leveraging growth in multiple sectors. If the economy goes up, some individual stocks might lose their value at the same time.
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Income from Dividends
Some of the stocks provide income in the form of dividends to the investors. While not every share offers a dividend, a few stocks deliver annual payments to the investors. Further, these payments are given to the investors even if the stock loses its value, and represent income when they plan to sell the stock. Also, income from dividends can help investors grow their investment portfolio over time.
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Ownership of the Shares
If you are buying the shares of a particular stock, it implies that you are taking ownership of the shares of that company. Also, investing in stocks brings benefits to the shareholder. Furthermore, shareholders receive annual reports to know more about the company, vote on board members, and make several business decisions.
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Diversification
For those investors who are willing to invest money in various product portfolios, the stock market investment provides diversification. The value of stocks changes at any time, and holding a stock can help the investor ascertain whether the stock will help the investor make a profit or incur a loss. Besides, investing in stocks adds risk to the portfolio and potential for rapid gains, allowing successful investors to refine their investment strategies.
How do the investors in the Stock Market make money?
- Investing in stocks is a simple process. But it requires a lot of patience, luck, discipline, and passion. The investor should have a sound knowledge of the share market, and they should have done some research about the various stocks they are planning to invest in.
- Few investors believe that making money in the stock market is done by using a trading strategy built around various rules. The trader should be trading in the stocks over time, where they can predict the total performance of the stocks. Unfortunately, several investors just come and go off the stock market during the worst times by missing out on the annual return.
- If the investor wants to make money by investing in stocks, they should invest more time and learn about the stocks and where to invest the money. Some of the good companies would increase their profits over time, and the investor can earn a higher return when the stock price increases. When the stock price increases, it brings a higher return for the investors who own the stock.
- Spending more time in the stock market allows investors to collect more information about the company. If you are entering and exiting the share market on a monthly, weekly, or daily basis, there will be no dividends as the investors might not know about the critical points on the stocks to get the payouts.
- Several investors make money by trading in cryptocurrencies, which are currently on the rise. Even though trading with cryptocurrencies is highly risky, investors can hedge their bets and limit some of the losses. There are several platforms for trading cryptocurrencies where the investor can make money. A word of caution: the trader should conduct thorough research and analyze the cryptocurrency sector before proceeding with cryptocurrency trading.
- It is always wise to invest systematically and by analyzing the share market. Having lots of patience in searching for the right shares or Mutual funds will help you invest in the shares to make profits. As we all know, the stock market is highly volatile; the investor should take a calculated risk and take a necessary course of action, such as hedging against the stocks.
- By having a diversified portfolio across different asset classes, the investor can earn maximum returns with minimum risk. The level of diversification varies from person to person, and during times of volatility, it helps the investor to cope with the stock market.
Popular Stock Market Success Stories from India
Let us see some of the successful stories of some of the popular investors from India –
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Rakesh Jhunjhunwala
Rakesh Jhunjhunwala is considered a well-known and most successful stock market investor in India. Currently, his portfolio is worth over 3.2 billion dollars/ Rs. 20,000 crores. Rakesh Jhunjhunwala holds stocks in CRILIS, Titan, Tata Tea, and Lupin. Also, he is known as the Indian Warren Buffett. Rakesh Jhunjhunwala entered the stock market in 1985, inspired by his father. He holds a professional degree in chartered accountancy, which he completed in 1985.
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Raamdeo Agrawal
Raamdeo Agrawal is a co-founder and one of the most popular members of Motilal Oswal Group, and MD and co-founder of Motilal Oswal Financial Services. He invested in stocks from 1980 to 1994 and has a stock portfolio of about 10 crore rupees. He studied Warren Buffett’s tips and reworked his portfolio, and within one year, Raamdeo Aggarwal’s portfolio doubled its net worth. Currently, his net worth is over 1 billion dollars / Rs. 6,500 crores.
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Dolly Khanna
Dolly Khanna is considered one of the top seven and the most successful investors in India. Dolly Khanna started investing in the Indian stock market in 1996, and Rajiv Khanna, her husband, managed her portfolio. She began buying stocks in the fertilizer sector with top-quality small-cap stocks, which always enjoys a Monopoly position. Moreover, Dolly Khanna always knows how to spot multibagger stocks and knows precisely when to book profits. Some of her portfolios include Emkay Global Financials, IFB Industries, Thirumalai Chemicals, etc.
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Porinju Veliyath
He is considered one of the most popular and well-known investors and fund managers. He made his first investment in Geojit Financial Services, where the share was trading at a very low value. When he first started to invest with time, his investment gave him good returns. In 2002, he established his portfolio management service company, which is called “Equity Intelligence.”
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Vijay Kedia
Vijay Kedia comes from a family of stockbrokers. In 1978, he started his career in the Indian stock market. Initially, he invested Rs. 35,000 in the stock of Punjab Tractor. Within 3 years, the stock had multiplied 6 times and the initial investment of Rs. 35,000 had grown into 2.1 lacs. Recently, he has continued to add successful Investments in various stocks, resulting in a wealth of 500 crores.
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Nemish Shah
Nemish Shah is the co-founder of ENAM, one of the most reputable and respectable investment houses. His investment ideas are highly sought after by successful investors and traders. He invested his funds in Asahi India, and the funds had grown 3.4 times in three years. Moreover, he does not invest in several stocks; he mainly focuses on a limited number of sector-driven stocks. Currently, his net worth is Rs . 1300 crores.
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Ashish Kacholia
Ashish Kacholia is known for his multi-bagger mid and small picks, which demonstrated his wealth creation in 2017. His portfolio is similar to the Dolly Khanna portfolio, where he had invested in synthetic compounds, which gave him 172% returns in the year 2017. Other multi-baggers include KEI Industries, which offered a return of 204% and Apollo Tubes, which provided a return of 116% in the year 2017.
Conclusion
Warren Buffett is widely recognized as a great investor and one of the wealthiest people in the world, who made his wealth by investing in stocks. If you are thinking about an option that gives you good returns, and after carefully considering its difficulties and analyzing the market, you can start investing in the share market. If the share market is analyzed correctly and researched, it will help people to make a lot of money, but you can also lose all the money if it is poorly invested without knowledge about the stock market.
FAQ’s
How Can I Succeed in the Indian Share Market?
Investing in shares is always risky, and the investor can make extra cash by investing in stocks. Moreover, by following the right approach, having the right skills, and investing carefully in the shares, investors can achieve good profits. Becoming a millionaire in the share market is not an easy task, and it won’t happen overnight. The investor should have extensive knowledge about the stock market, conduct thorough research, and then invest their money.
Who Is the Richest Day Trader in India?
Rakesh Jhunjhunwala is known as “India’s Warren Buffett”, “the big bull,” and is the most successful stock market investor in India. He is also considered the most prosperous day trader in India. Rakesh Jhunjhunwala joined the share market after completing a chartered accountant degree.
How Can I Become a Millionaire in the Indian Share Market?
Earning millions in the share market is not easy, and it will not happen overnight. Moreover, it can be achieved if the investor follows a dedicated approach and prepares themselves for the setback, understanding the difficulties and challenges along the way so that they can come close to reaching their investment goals. Besides, they should follow, research, and analyze the share market before proceeding with investing. Further, investing in Mutual funds can also be considered as a good option.
Who Got Rich from the Share Market?
When it comes to affluent Indian share market investors, Rakesh Jhunjhunwala is considered one of the most successful investors in the share market. He is regarded as the most prosperous day trader in India. Currently, his portfolio is worth over 3.2 billion dollars/ Rs. 20,000 crores.
