MOST IMPORTANT:-Same Investment & Not the Same Quantity

Same Investment & Not the Same Quantity

When we start a new business we always calculate the profit as per our investment.If we Invest Rs.5.00 lac's, At least we expect 15% P.A.in returns.But in the case of STOCK MARKET we never calculate in that way.We see the price of particular script & than as per the price we invest.Some of the Investors get scare due to high price of the script.

For example:-if price of RELIANCE INDUSTRIES NSE CASH IS 1000/-per share.We buy only 25 shares.That means we invest 25000/-
In other case-If price of UNITECH NSE CASH 100/- per share.We buy 1000 shares.That means investment is of Rs.100000/-

SCRIPT 1-INVESTMENT OF Rs.25000/-
SCRIPT-2 INVESTMENT OF Rs.100000/-

At the end of the month how you calculate the profit?When you invest different amount for every different script depending upon the price of the script..Because you don't aware that how much amount you invest in every script.Now you can't calculate the profit in returns.

But if you invest same amount in both the script.
 INVESTMENT OF Rs.100000/-
RELIANCE INDUSTRIES:-100000/1000(CMP) (value of shares)=100 Shares
UNITECH :-100000/60(CMP) (value of shares)=1666 Shares
In both the script prices is different still if you earn 5% in returns,you earn same amount from both the script.That is Rs.5000/-

So investors please invest same AMOUNT in every script.
Don't see the price of the script for investment.