Lesson 5 of 5 · 6 min

Costs, diversification and risk

Two things you control are what you pay and how much you put in any one place.

Costs add up

Every trade carries brokerage, securities transaction tax (STT), exchange charges, stamp duty and GST. Frequent buying and selling multiplies them. GroWiser’s brokerage calculator shows the full cost of a trade before you place it.

Diversification

Spreading money across several companies and sectors means one bad result hurts less. Many people also keep part of their savings in other assets, such as fixed deposits or mutual funds.

Know your own risk

  • Money you need within a year or two is usually kept out of shares.
  • Prices can fall sharply and stay low for a long time.
  • If you need advice for your situation, speak to a SEBI-registered investment adviser.

This course is general education, not investment advice.

Quick check

1. Which of these is charged on an equity trade in India?
2. Diversification mainly helps by…

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GroWiser Academy is general education, not investment advice.