According to experts sip is a secure investment plan in the share market for the long term. SIP full form is a simple investment plan and the term ‘SIP’ is used in sharemarket.
What is SIP in share market
Before knowing the sip investment plan you should know what is sip. SIP denotes a simple investment plan for long term investment. It is one of the best investment options for long term investors.
SIP is done in the share market. It is done for the long term 10 years to 15 years or 18 to 25 years as well. A person can also do it for a minimum of 5 years to 7 years with slightly less profit.
SIP is recommended by experts to those people who don’t want to take risks in investment. SIP is the collection of top shares including nifty 50 shares. Worst-performing shares get out of the portfolio automatically after a few years.
SIP is done for a long-term minimum of 5 years or 7 years. It is good to do a simple investment plan for 10 years or more than 10 years to get the best profits. Profits are measured based on interest and compound interest. Compound interest is additional interest over interest.
What is SIP investment in share market
SIP investment plan in share market is an investment plan for the long term that can be done by every person over 18 years. Individuals can start SIP with a minimum of Rs 100 to Rs 500 as well depending on their earnings.
One cannot start SIP without a share market account so first open a share market account. Bank accounts and some other documents are required to open a share market account and start investing in a simple investment plan.
Documents like Aadhar card, pan card and bank account are required to open a trading account and start an SIP account.
After opening a trading account and activating a portfolio of 10 to 15 or more shares is created. The quantity of the shares depends on the investment of the person. These portfolio shares have been held for years. Well-research shares are selected in the portfolio and a good thing is if a share does not perform well or according to the expectation it is replaced by another share.
People hardly face any loss in SIP due to its long term policy and loss giving share replacement in between. Shares not performing are replaced after some time with some good assets. This is why it often becomes a profitable investment in the long term. In a short period a person cannot gain the expected profit so it is necessary to continue for a minimum of 3, 5 to 7 years. Due to the different varieties of shares, the risk factor is reduced and it becomes a profit investing.
Stock market
The stock market and share market both are the same. The share market address in Mumbai is Dalal Street. In Mumbai, the stock market is famous as the Bombay Stock Exchange (BSE). A share market is a place where people buy and sell shares of different companies.
Real-time price changes can be seen on the computer screens. The share price shown in red marks indicates a price decrease from the opening price of the day and the green price indicates a price increase from the opening price of the day.
Two types of trading are done on a large scale which are intraday and holding. In intraday trading shares are purchased and sold on the same day. Shares are purchased early morning around 9 to 10 a.m. and sold before 3:00 p.m.
Individuals get a 10 time limit in most shares while investing in intraday whereas holding doesn’t give any limits. If a person has purchased 50 shares of ABC company then it will be 50 x 10 = 500 shares on the price of 50 shares. This is the magic of intraday and due to this magic, lots of youngsters get trapped and lose money. Therefore hold is the best investment option due to its long-term hold facility.
Intraday is a quick money making scheme and one has to sell the shares on the same day whether the price is high low or very low. If the price goes low and people do not sell then after 3:00 p.m. it will automatically be sold.
FAQ
What is SIP in the share market?
SIP is a simple investment plan in which a portfolio of different shares is created for the long term.
What is the full form of SIP in the share market?
Simple investment plan.
Is intraday safe investment in the share market?
No, it is one of the most risky investments to become rich.
I am 19 years old, can I start sip?
Yes, start SIP for at least 10 to 20 years to get good returns.
How to start SIP investment?
You need a share market account to start investing in SIP.
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