5 types of stocks: Smart things to know
1.Growth stocks are expected to grow at a faster rate compared to the broader market and typically outperform in low interest regimes and expansion phase of the economic cycle.2.Value stocks are available at cheaper valuations than the broader market and perform well in the recovery period of the economic cycle.
3.Dividend yielding stocks provide a regular stream of income as they distribute the profits regularly in form of dividends.
4.Cyclical stocks are heavily impacted by the economic cycles and follow ups and downs of the overall economy.
5.Defensive stocks demonstrate a relatively stable performance across economic cycles and typically belong to sectors that produce necessities or consumer staples.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
