3 Risks of Investing In Micro Cap

Three things you should keep in mind before investing in micro-cap companies. The first one is that information about those companies is not easily available. They generally don’t do investor calls, quarterly calls, and don’t publish detailed annual reports and news agencies also don’t cover such companies. often so even if the share price is falling and you try to figure out the reason for it you may or may not know the reason for the fall in price the next thing is liquidity generally micro-cap stocks are very illiquid and there may be a situation that they may be hitting continuous upper and downward circuits so any day.

3 Risks of Investing In Micro Cap

if you want to exit that stock there may be a situation where it’s hitting lower circuits and you’re not able to exit the third risk would be corporate governance. generally, the micro-cap companies are not very strong in terms of corporate governance and promoter ethics and a lot of times their accounts are not very clean and since they are small companies, it is easy to manipulate and show fancy figures to the investors so you should keep these three things definitely in mind before you invest in a Micro-Caps company next time.

If have you any query then please visit us at EMS Share Market Institute Deccan, Pune

Here follows a particular considerations to assist you select the proper stock exchange training institute:

• Compare the packages offered by different training institute

• Compare the institutes, services and features online

• Ensure, if the courses offered are designed perfectly to fit your expectations

• Ensure, if the courses are effective for intraday trading

• Ensure, if the courses offered best suit all categories of person, including brokers, new traders, home makers and part time workers

• Ensure the course can make you become well informed the trade of market
• Ask if the institute provide you live market training

• Are the courses offered contain detailed and sufficient information

• Do they give advanced workshop

• Is the institute you select is affordable

• Do they supply you sufficient support in learning about the market completely

With all these features we are proud to be in the Top Share market Classes In Pune. Please Do visit EMS Share market classes Deccan Pune.

Liquidity on sale: The first benefit is Liquidity on sale. Whenever you want your money back within the trading arts of 9:00 to 3:30 you can sell your stocks and you can get the money back within a day or two days. The money will be credited to your bank account and you can use the money for your purpose in other forms of investment either are, there is a long process to get your money back or sometimes like in real estate it will you have to first give an advertisement and only when there is a buyer then only you can sell your investment and get your money back but, in stock market it is very quick.

Higher Returns: The second benefit is higher returns. when compared to the other investments like, fixed deposits BPF or gold investments stock market can give you much more returns it depends on how wisely you choose the companies you are investing in but over a period of time it is proven many times that stock market is going to give you higher returns when compared to other investments.

For more details, please visit on online share market courses in Pune.

What is a mutual fund and how it works? Okay, to put it in a very simple way, let’s take a very simple example, on this assume that I were to go from Pune to Mumbai. I have two options, assume I can take out my own car, I can ride on my own, I can drive on my own, I can enjoy because I know how to drive, I know what way I have to choose, I know what are the basic rules everything. Okay, so I’m a well-educated person as far as driving is concerned. so I can choose how to drive which way to go and how to go, over possibility number two I am not really keen on driving I just want to reach Mumbai, that’s it so what I can di is I can just hire a driver.

I hire a professional in short, he takes the decision on which road to choose and what speed to drive, where to stop, I keep all the decisions at his discretion, I just tell him the final destination. okay that’s exactly the difference between a stock market investment and a mutual fund investment, in the stock market investment you take your own decisions you know where you have to go how to go, you have expertise in that and you have the enthusiasm I may say to explore these things but if you the second category you’re really not bothered to explore things you better hire professional and he will make decisions for you that’s exactly what a mutual fund is.
in simple words mutual funds means there is a mutual fund manager, who takes decisions on your own money which is invested with the mutual fund. okay so let us understand basically what a mutual fund does ok it will collect money from people like you and me. okay so assume that there is a pool of hundred people okay, and these hundred people given funds or contribute some money to a mutual fund. now this mutual fund is going to reinvest this money into different, different, investment opportunities like a mutual fund can invest in equity a mutual fund can invest in debt a mutual fund can invest in either or both.

The mutual fund is nothing but a type of organization which would take money from people like you and me, would create a pool of funds and this pool of funds will be invested in different investments okay now what is the positive side for mutual fund now mutual fund which is invested in different avenues investment avenues mutual fund will earn income out of that okay now this income earned can be in the form of interest or it can be in the form of dividend okay it could be in the form of gain as well difference between costs price and selling price right so mutual fund okay they’ve got gains okay assume they’ve got hundreds of begins than what which one is going to do with that distribute this to the investors those who are invested in the mutual fund. do you think they want to distribute entire hundred rupees if they distribute hundred rupees are they mad just to do social service no they’re not want to do that so they are going to take some portion for their own purpose this is exactly known management expenses or people call this as an expense ratio this expense ratio could be typically 1% to 3% of your total investment amount. okay I hope you have understood how a mutual fund works in the most simplified manner.

Hello everyone,

This is Yashodhan from EMS Stock Market trading Institute in Pune .

Today we will discuss about various Order Types. Basically, there are total 4 types of order.

Market Order.
Limit Order.
SL Limit.
SL Market.
Let’s start with one by one.

Market Order.

Stock market how to use market order

If you want to place order at current market price, then you have to place Market Order. (E.g., If CMP of ABC Pvt. Ltd is Rs 200. And I’m willing to buy or sell that stock at the same price without doing any bargaining, then I will simply place Market order. And stock will get credited to my account.)

Limit Order.

Share market how to use limit order
Whenever you want a stock at a particular price, you can place Limit order. Basically, here you get a Bargaining benefit.
E.g., Share price of ABC Pvt. Ltd is 100, and I’m willing to buy that share @ Rs 95. In this case, I can place Limit order. Whenever the share price of ABC Pvt. Ltd will reach @ Rs 95, my order will get executed.

(While Buying share you can’t enter the price which is more than CMP and vice versa while selling)

SL Limit.

What is the significance of stop loss in the stock market trading?

This order is made for stopping your losses. Think that you are bullish about market but trend goes against your thinking. In this case, your position will start showing you losses. To prevent these losses, we can place sell order of SL Limit.

In Stop Loss Limit order, there are 2 prices. 1) Trigger price and 2) Price. This is nothing but a range. And your share will get sold between these 2 prices.

E.g., Rs 100 is your buying price and your loss-making capacity is Rs 5. i.e., SL will be Rs 95. Here your trigger price will be 96 and price will be 95. And if unfortunately, price moves against your trend, price will come down and down. As soon as price reaches at 96 your order will get activated and will get sold between the price range of 96 to 95.
SL Market.

What is the importance of stop loss market in the share market ?

There is another method for stopping your losses which is SL Market. Unlike SL Limit, here you are requiring to mention only one Trigger price. And once the price hits your Trigger price, your order will get executed at the best market price.

E.g., Rs 100 is your buying price and your loss-making capacity is Rs 5. i.e., SL will be Rs 95. Here your trigger price will be 95. And if unfortunately, price moves against your trend, price will come down and down. As soon as price reaches at 95 your order will get activated and will get sold at the best market price. (Not exactly at Rs 95, it could be Rs 95 or 94.90 or 95.10)

So, these were the four important types of order.in the share market

If you want to learn it Practically, you can enroll for our Basics to Advance Single Super Course.in ems stock market institute in Pune

In this, you will learn Intraday, Delivery, Equity, Futures and Options, Currency, Commodity etc.

In EMS stock market classes we look at many ways to diversify your Portfolio. INVIT is one such option. InvITs list on the stock exchanges to raise capital for the purchase of a portfolio of operational infrastructure assets that are already producing consistent cash flows. It is like a hybrid product―with equity and fixed-income characteristics

Infrastructure investment trusts, or InvITs, have been around for a while but many investors are still unaware of this option for investing that may very well replace some, if not all, of their debt investments with a little different flavor and a higher risk-reward ratio.
Should individual investors think about investing in InvITs? Before choosing to invest in this new asset class, let’s go through the basics.

InvITs look like mutual funds

InvITs, which function similarly to mutual funds (MFs), provide investors with units in exchange for their investments and allow for the pooling of capital from multiple investors, with specific management in charge of the assets.

The key distinction between an InvIT and an MF is that in the former, the funds are invested in infrastructure projects, while in the latter, the funds are in invested in diverse equity and debt instruments.

What types of infrastructure projects do InvITs invest in?

InvITs usually invest in roads and operating highways, besides power generation, distribution, and transmission units. InvITs may own and manage some of these assets. To put it simply, any infrastructure project ― as the name of the investment suggests ― is an option for an InvIT.

Why InvITs are less risky than direct infra stocks/MF schemes?
InvITs are matured, stable assets; the stage of conceptualization and implementation of the infrastructure project would already be over before the InvIT scheme comes into action. InvITs aim to optimize the matured operations, and hence, render them safer than investment in direct infra stocks/MF schemes.

Let’s take an example. Let’s assume that a road has already been built, meaning that the said road project’s conceptualization and execution phases are over. With the implementation risk eliminated, a significant safety net comes into play. Then we look at the number of vehicles currently using the road. With this data in hand, you can calculate the toll collection. These mature assets are listed on the company’s balance sheet.

You may also relate it to Real Estate Investment Trusts (REITs), where business operations start after a structure, for instance, a building project, is built. Learn about such new investment Ideas in ours classes. Located in Deccan Pune. This Is Yashodhan Signing off from EMS classes. We are one of the best rated classes on google, because we encourage students to build a wholesome portfolio.