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Is it the right time to buy Reliance shares?

by M Sakhawat
Is it the right time to buy Reliance shares

Investing in shares has become very popular among people because it gives them a chance to compound their money in the long run. The higher returns from shares help people to combat the effects of inflation.

When you want to profit from shares, it is essential to buy shares of a stable company and hold them for a considerable time. The cost of a single share of a company like the Reliance retail share price is not fixed.

It fluctuates according to market conditions – the share price increases when the company is doing well and falls when it’s not doing good.

Types of shares

Equity shares:  Equity shares are shares that allow you to hold fractional ownership in a company. You benefit when the company makes a profit, and when you own a significant number of shares, you have a say in the company’s management.

Preferred shares: Preferred shares are similar to equity shares and give you fractional ownership in a company. When the company distributes its dividends, the shareholders of preferred shares get paid first, before other equity shareholders.

Large shareholders of a company get voting rights and have their say in the company’s strategic decisions.

Benefits of investing in shares

High returns

You get two types of returns while investing in shares, capital appreciation, and dividend income. When the company is doing well, its capital appreciates. The dividends serve as an additional income.

Maximize wealth creation

The high returns from shares can beat inflation and help you maximize wealth creation in the long run. The best strategy to create wealth through stocks is to choose a profitable company and hold the shares for many years.

Tax advantage

Gold investments make you pay higher taxes. The tax for equity shares is low compared to the tax on gold investment. Investing in shares is more tax-efficient than gold.

Loan availability

A convenient and easy way to avail of high-value loans at affordable interest rates is by pledging your shares with the bank. You can avail funds of up to 50-60% of the value of the shares. When you repay the loans in the future, the pledge is also removed.

Easy liquidation

You can quickly liquidate the shares to meet the needs of financial emergencies. The shares can be traded easily, and the money is deposited in your bank account within a few days.

Invest in shares

Before buying the shares of a company, it is critical to get a clear picture of its financial position. A company’s growth and future depend on the company’s management. Understand the company’s growth and plans before investing in the shares.

It should have a relatively straightforward business model and remain sustainable in the future. You should never invest in a company you don’t understand and avoid companies with massive debt.

Whatever company you choose, your priority should be preserving your capital and minimizing the risk. It is best to select shares that have high liquidity and avoid those that are highly volatile. Anyone interested in buying and selling shares should have a Demat and trading account.

Share prices like the Reliance retail share price are stable and give good returns. Shares can be bought and sold quickly through a broker, financial planner, or online.

Day traders take advantage of short-term trends while investors wait and watch for the company’s stock price to grow over time. With some research and patience, you can invest in shares and multiply your money.

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