Start Investing in Equity Shares with Expert Guidance Today
Equity shares are a smart way to build wealth by owning a part of a company. When you buy an equity share, you become a shareholder in that business. As the company grows and earns profit, the value of your shares can increase. Some companies also pay a part of their profit to shareholders as dividends. Equity shares are popular because they offer good returns over time and give you a chance to be part of a company’s success. With the right planning and patience, many people use equity shares to meet long-term financial goals like buying a house, planning for retirement, or saving for their child’s future.
But investing in equity shares needs some understanding. The market can go up and down based on how companies perform and other global events. It is important to choose the right shares, know when to invest, and track your progress. That’s where Finmarra makes it easy for you. Our experts explain every step in simple words and help you find the shares that match your goals. We make sure you are not alone in the process. From the time you start till the time you grow your money, we guide you with care, clarity, and confidence. With Finmarra, equity investing becomes a clear and comfortable journey.
How to Make Money from Equity Shares with Finmarra
Through Dividends
Dividends are a part of the company’s profit that is distributed to its shareholders. Some companies pay dividends regularly, quarterly, or yearly. If you hold shares in a company that does well and has a steady profit, you can earn a regular income through dividends. It’s a way to get paid while you stay invested.
Through Capital Appreciation
Capital appreciation means your shares increase in value over time. If you buy a share at a lower price and sell it later when the price has gone up, the difference is your profit. This is the main goal of long-term investors. The longer you stay invested in a good company, the higher the returns you get.
Through Stock Buybacks
Sometimes companies buy back their own shares from the market. This reduces the number of shares in circulation and can increase the value of the remaining shares. If you hold shares during a buyback, you may get a chance to sell them back at a higher price. It’s another way investors can earn without selling in the open market.
Key Factors That Affect Share Prices Explained by Finmarra
Company Performance
A company’s profit, sales, growth, and plans directly affect its share price. If the business does well, people want to buy more shares, which pushes the price up. Poor performance can bring the price down. Investors always watch earnings reports and updates to decide when to buy or sell.
Sector Trends
Throughout every sector, including banking as well as tech and healthcare, each entity maintains membership. Every company within the same sector will experience a boost in their share prices when all groups achieve positive performance outcomes. The tech industry's boom condition usually leads to better share price performance for technology stocks.
Market News and Global Events
News about the economy, changes in government policy, global issues, or even natural disasters can affect share prices. Positive news can make prices go up, while bad news can lead to a drop. Market prices will increase upon receiving positive news reports, while negative news triggers price decline. Investors need to track worldwide as well as local events for successful investments.
Long-Term vs Short-Term Equity Investing
| Aspect | Long-Term Investing | Short-Term Investing |
|---|---|---|
| Investment Duration | Held for several years | Held for days, weeks, or a few months |
| Goal | Wealth building and compounding returns | Quick profits |
| Risk Level | Lower, as market volatility balances out over time | Higher, due to sudden price fluctuations |
| Market Monitoring | Minimal day-to-day monitoring needed | Requires active, frequent market tracking |
| Ideal For | Patient investors aiming for future financial goals | Traders are comfortable with making quick decisions |
| Returns | Grows with the company’s performance and dividends | Dependent on timing and market momentum |
Types of Equity Shares You Should Know Before Investing
Common Shares
The most common form of equity shares exists as common shares among investors. Purchasing common shares grants you both voting rights in company decisions, together with a portion of the company's expansion opportunities. Share price values tend to rise when the company performs successfully. You may also receive dividends, but they are not guaranteed. Common shares are a good choice for long-term wealth creation.
Preferred Shares
Preferred shares give you a fixed dividend before common shareholders receive anything. However, they usually don’t come with voting rights. These shares are good if you want regular income with lower risk. They offer more safety compared to common shares, especially during tough times for a company.
Bonus Shares
These are extra shares given to existing shareholders without any cost. A company gives bonus shares to investors through profit distribution as a method to show gratitude. The increase of total shares renders you with additional shares at no cost to you, although this boost benefits your future returns. It's like getting free shares for staying invested.
Rights Shares
Rights shares are offered to current shareholders at a discounted price before they are offered to the public. It gives you a chance to buy more shares and increase your ownership. This is a great option if you believe in the company’s future and want to add more at a lower cost.
How to Make Money from Equity Shares with Finmarra
Through Dividends
Dividends are a part of the company’s profit that is distributed to its shareholders. Some companies pay dividends regularly, quarterly, or yearly. If you hold shares in a company that does well and has a steady profit, you can earn a regular income through dividends. It’s a way to get paid while you stay invested.
Through Capital Appreciation
Capital appreciation means your shares increase in value over time. If you buy a share at a lower price and sell it later when the price has gone up, the difference is your profit. This is the main goal of long-term investors. The longer you stay invested in a good company, the higher the returns you get.
Through Stock Buybacks
Sometimes companies buy back their own shares from the market. This reduces the number of shares in circulation and can increase the value of the remaining shares. If you hold shares during a buyback, you may get a chance to sell them back at a higher price. It’s another way investors can earn without selling in the open market.
Start Your Long Term Investment Today!
How to Start Investing in Equity Shares with Finmarra
Talk to a Finmarra Advisor
Speak with our expert to understand your goals and ask questions freely in a friendly and clear way.
Talk to a Finmarra Advisor
Speak with our expert to understand your goals and ask questions freely in a friendly and clear way.
Learn About Company Shares
We explain what matters when picking shares so you feel ready to make the right choices without confusion.
Learn About Company Shares
We explain what matters when picking shares so you feel ready to make the right choices without confusion.
Choose Your Companies
Select companies based on your comfort, future goals, and our helpful insights on potential performance.
Choose Your Companies
Select companies based on your comfort, future goals, and our helpful insights on potential performance.
Start Investing with Confidence
Begin with any amount you’re comfortable with. We support you from the very first step of your journey.
Start Investing with Confidence
Begin with any amount you’re comfortable with. We support you from the very first step of your journey.
Track and Grow Your Portfolio
Stay updated with simple reports and advice. We help you review your investments and keep things on track.
Track and Grow Your Portfolio
Stay updated with simple reports and advice. We help you review your investments and keep things on track.
