1.1 Why to invest?

To Fight Inflation: By investing one can deal better with the inevitable, growing cost of living, generally referred to as inflation.

1. To Create Wealth – By investing, one can aim to have a better corpus by the end of the defined time period.
2. Investing fulfills the investor’s life’s financial
3. Investing benefits, the investor from Power of

1.2 Where to invest?

When it comes to investing, one has to choose an asset class that suits the individual’s risk and return temperament. An asset class is a category of investment with particular risk and return characteristics. The following are some of the popular asset classes.

1. Fixed income instruments
2. Equity
3. Real estate
4. Commodities (precious metals)

1.3 The Stock Market

1.3.1 OHLC

It refers to the stock’s open, high, low and close price for a certain time period.

1.3.2 Market Capitalisation

Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by multiplying the current market price of the company's share with the total outstanding shares of the company.

For instance, a company has 20 million outstanding shares and the current market price of each share is Rs100. Market capitalization of this company will be 200,00,000 x 100=Rs 200 crore.

1.3.3 CAGR

It stands for Compounded Annual Growth Rate. CAGR (Compound Annual Growth Rate) measures your investments' average annual growth over a given period. It shows you the average rate of return on your investments over a year. CAGR is a helpful tool for investors because it precisely measures investment growth (or decline) over time.

The formula for calculation for CAGR is as follows: