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Topic: Miscellaneous
Number of pages / Number of words: 86 / 23856
Essay's paper body

However, an investor with a moderate-to-high risk appetite has the opportunity to invest in the capital market so as to earn higher returns.

Prior to taking a plunge in the capital market, an investor should understand its mechanics completely to reduce the risks involved, identify the entry and exit points for different stocks and thereby maximize returns...

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By creating a portfolio and investing in different stocks the investor is able to spread his risk within the portfolio rather than concentrating the risk in one investment. This allows him to make gains even if a few of the stocks in the portfolio do not perform well.

All this is easier said than done...

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