Blue Bindi Project - An initiative by Nuvama Wealth

So, why must you consider equities?

Because equities can make all the difference to your wealth portfolio.

“When you need to boost your wealth profile, you need equities to take you there.”

What are equities?

Equities refer to the shares of the company. It basically means you have a proportional ownership equivalent to the size of the share.

What are the types of equities in the markets?

Large-cap stocks are shares issued by a company with large market capitalisation.
Mid-cap stocks encapsulates companies which fall in between large-cap and small-cap category.
Small-cap stocks are shares issued by a company with small market capitalisation.
Blue-chip stocks Blue chip stocks are a subtype of large cap stocks that are more reliable, dividend-paying, and stable.
Penny stocks are stocks with extremely low prices.

Large-cap companies	Mid-cap companies	Small-cap companies
Market Capitalisation above Rs. 20,000 Crore.	Market capitalisation in between Rs. 5,000 – 20,000 Crore.	Market Capitalisation below Rs. 5,000 Crore.

Did you know Sensex came from two terms - Sensitive and Index and was coined by Deepak Mohoni, a stock market expert!

What type of equity accounts are there?

Common Stock
An equity account representing the initial investment.
Gives the shareholders the right to certain company assets.

Preferred Stock
Similar, to common stocks, preferred stockholders have no voting rights.

Retained Earnings
The account shows the earnings you accumulates, minus any dividend payments.

Treasury Stock
It accounts for the amounts paid to buy shares back from investors.

Did you know the BSE has listed about 4700 companies whereas NSE has listed 1200 companies on its respected stock exchanges?

How do I begin investing in equities?

Research
It begins with learning the market and researching on the stocks before you invest.
Open a Demat account
In order to begin investing in the stock market, you need to open a demat account. Any trading platform can help you set up a Demat account.
Set a budget
Since you are about to begin investing for the first time, you need set a small budget to experiment with your investment, until you get a hang of it.
Focus on the long-term
While investing, always think long term and with stocks you may even get tax benefits.

Why must you invest in equities?

Increased returns
The primary benefit of investing in equities, if researched well, is that you could get higher returns.
Hedge against inflation
It is a good hedge against inflation even though it does not fully compensate for the declining purchasing power.
Free transferability
You can easily transfer your shares to someone else.
Share in the Growth
When you own shares, you are part of the company. So as the company grows, so does your profit. And the same goes for its losses.

“Find equities to make your very own wealth path.”