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Investing in start-ups: Fools job or a genius move

Some prefer it, some despise it but one thing’s for sure, if executed correctly the returns are very rewarding. The risk factor involved is as similar as that of stock market, however once paid off, it can generate exponential returns greater than anyone else. Almost every successful company was once a start-up (Infosys, Wipro, Flipkart to name a few) their IPOs now are worth a fortune. Those people who believe investing in more traditional avenues like bank deposits or anything that has assured returns wouldn’t consider tapping into the stock market so investing in start-ups is a big no for them! What they fail to realize is, even with the risks involved, investing in start-ups comes with its own set of advantages which one simply can’t ignore. You’re not investing in a company; you’re investing in innovation: Any start-up founder’s disposition to launch their company is driven by immense ambition & belief in their innovation. In many ways, you’re part of that innovation too. By investing in an idea, you have the opportunity to voice your opinions, provide insights, work on the innovation alongside, be an aid to the entrepreneurs & turn it into success. Portfolio Diversification: Stock markets come with an abundant credit flow but fewer opportunities to participate in. On the other hand, due to the misconception that start-ups have a greater risk as compared to stock markets, there’s a lack of credit-flow & greater opportunities to participate, because of which early-stage investments turn out to be of fewer risks & greater returns by portfolio diversification. Greater chances of takeover: For a successful start-up, an innovative idea & the right execution is enough. They could turn in huge profits & as a result of it, big corporations may want to take over your little start-up to mint on the profits. When that happens, you as an investor can expect great returns for yourself. For a successful start-up an innovative idea & right execution is enough. They could turn in huge profits & as a result of it, big corporations may want to takeover your little start-up to mint on the profits. When that happens, you as an investor can expect great returns for yourself. Nurturing the welfare of the communities: At the centre of every start-up is an innovative idea. An idea that aims for societal benefits by providing solutions for the betterment of the society. When you associate yourself with such start-up, you’re essentially contributing to the greater good of the society or the community who’s going to benefit out of the start-up’s innovation. To conclude, every investment is a risk. However, investing in start-ups & especially early start-ups enables diversification of your portfolio, it has a reduced risk potential, you can voice your opinions, you generate greater returns than other investment avenues. Like we said above, start-ups if executed correctly, can generate exponential returns. When given a thorough consideration & proper research is performed, investing in start-ups could be the most genius thing to do.
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ATTENTION INVESTOR:
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.    2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.    3. Pay 20% upfront margin of the transaction value to trade in cash market segment.    4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs)( issued vide circular reference -- for NSE- NSE/INSP/45191 dated July 31, 2020 & NSE/INSP/45534 dated August 31, 2020 and for BSE - issued vide notice no. 20200731-7 dated July 31, 2020 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.   5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.     6. Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges. Dear Clients, charges for Depository Services has been revised with effect from 29,08, 2020 and Revised Tariff Structure   7. Prevent Unauthorized Transactions in your account- Update your mobile number/ E-mail ID with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/ email at the end of the day.    8. Please read the Risk Disclosure Document and Do's & Dont's prescribed by the Exchanges carefully before investing.    9. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.    10. Prevent Unauthorized Transactions in your demat account - Update your Mobile Number with your stock brokers and Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.   11. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.   12. Disclaimer: Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges.   13. Kindly update your 6 KYC mandatory attributes i.e. Name, Address, PAN, Email, Mobile and Income Range on or before 31.05.2021 for uninterrupted DP and Trading Activities.
ATTENTION INVESTOR:
1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.    2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.    3. Pay 20% upfront margin of the transaction value to trade in cash market segment.    4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs)( issued vide circular reference -- for NSE- NSE/INSP/45191 dated July 31, 2020 & NSE/INSP/45534 dated August 31, 2020 and for BSE - issued vide notice no. 20200731-7 dated July 31, 2020 & 20200831-45 dated August 31, 2020 and other guidelines issued from time to time in this regard.   5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.     6. Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges. Dear Clients, charges for Depository Services has been revised with effect from 29,08, 2020 and Revised Tariff Structure   7. Prevent Unauthorized Transactions in your account- Update your mobile number/ E-mail ID with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/ email at the end of the day.    8. Please read the Risk Disclosure Document and Do's & Dont's prescribed by the Exchanges carefully before investing.    9. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.    10. Prevent Unauthorized Transactions in your demat account - Update your Mobile Number with your stock brokers and Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day.   11. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account.   12. Disclaimer: Hem Securities Limited and Hem Finlease Private Limited are engaged in Client based and proprietary trading on various stock exchanges.   13. Kindly update your 6 KYC mandatory attributes i.e. Name, Address, PAN, Email, Mobile and Income Range on or before 31.05.2021 for uninterrupted DP and Trading Activities.