Share market basics
Systematic Investment Plan: investing a fixed amount into a mutual fund at regular intervals, usually monthly, regardless of the market level.
A SIP, or Systematic Investment Plan, is a standing instruction to invest a fixed sum into a mutual fund on a set date each month, or sometimes weekly. The money is debited automatically and buys units at that day's NAV. When the market is down you get more units for the same rupees, and when it is up you get fewer, which averages your purchase cost over time. Suppose you set a ₹5,000 monthly SIP in a Nifty 50 index fund. Over years you accumulate units without needing to decide when to invest, which removes the timing problem that trips up most people. SIPs do not protect you from a falling market; the value of your holdings falls with it. What they provide is discipline and a low-cost way to build a long-term position. Many brokers also offer stock SIPs for buying shares in the same way.
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.
