Saturday, 11 July 2015
How to Buy Shares in India 2015
market price of XYZ rose to Rs 212 & decides to sell. The profit made in this transaction is Rs 12. This way of making money from shares is called capital appreciation. The capital appreciated is from Rs 200 to Rs 212 in one year. If one does not want to buy stock directly, go & buy diversified equity mutual funds. In addition to capital appreciation shares can earn dividend as well. Lets takes example. If XYZ consistently improves its profit, dividend disbursement will also improve. In year 1 say dividend yield is 4% per annum. Suppose company's EPS increases at rate of 12% per annum. At this rate, in next 5 years dividend yield may also increase from 4% to 7% per annum.
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