Understanding Shares

Before you invest your hard-earned money in shares, it's important to have a good grasp of what they are and how they work.

What are Shares:

Shares are like owning a piece of a company. If you buy shares, you become a shareholder of the company. The more shares you have, the bigger piece you own. As a shareholder, you get right to vote on important decisions about the company at General meeting of the company. For example, if a company have 1,000 Shares and you buy 50 shares of the company. Than you have 5% ownership of the company.

Features of the shares

When you buy a share of a company, it has a special value called face value. Unlike bonds, shares don't have an expiration date or period, which means you can keep them for as long as you want, unless you sell them to someone else.

When a company makes a profit, it might decide to share some of that money with its shareholders in the form of a dividend. But it's important to remember that the amount and how often the company pays out dividends is not guaranteed.

Benefit of investing in shares

Investing in shares can provide following benefits:

1. Investing in shares may provide higher returns than many other investment options, such as bonds or savings accounts. However, there is also associated risk of investing in shares. While there are no guarantees of returns in the stock market, investing in well-established companies with a track record of success can potentially provide good returns over the long term.

2. Investing in shares help us to diversify investment portfolio. This helps to reduce risk.

3. Shares market are liquid so we can sell share easily and access money when we need it.

4. Investor become the part owner of the company and can benefit from the future growth of the company.

Risk of investing in shares

There are always risks involved with any type of investment especially in case of Shares. These include the following:

Volatility: PMS adapts to individual goals and preferences, offering a bespoke investment approach..

Credit Risk: By investing across various asset classes and sectors, PMS minimizes risk while optimizing returns.



1. Un-foreseen events: Portfolio managers consider tax implications during investment decisions, potentially enhancing post-tax returns.