Share market basics
A pooled investment run by a fund house that collects money from many investors and invests it in shares, bonds or both according to a stated objective.
A mutual fund collects money from many investors and invests it according to a stated objective, managed by a fund house regulated by SEBI. Equity funds buy shares, debt funds buy bonds, hybrid funds mix both, and index funds copy an index. You own units, and their value is the NAV, calculated once a day after the market closes. You can invest a lump sum or through a monthly SIP, and you can redeem on any working day, with money reaching your bank in a couple of days for equity funds. Fees are charged as an expense ratio, deducted daily from the fund's value; direct plans have lower ratios than regular plans sold through distributors. Suppose you put ₹10,000 into a large-cap fund at a NAV of ₹50; you hold 200 units, which rise and fall with the fund's holdings. Funds diversify but do not eliminate market risk.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
