High Price Shares vs. Low Price Shares: Which of the Two Gives Better Returns?

High Price Shares vs. Low Price Shares It refers to the average price of shares fluctuations. Relatively cheap shares are somewhat volatile. Naturally, they have an inclination towards a rapid fall in price. They rise and fall over a short period of time and repeatedly. Therefore, those who are looking for stability and security (security) do not want this. On the other hand, HPS  behave differently. They are less volatile; So investors invest for the long term.

Risk: Risk factors are always more important for low priced shares. Many people believe that whatever comes cheap brings with it a risk factor. Low priced shares are sometimes traded. They have been in the market for a long time and are probably doing poorly. Therefore, they are now available at lower prices. This increases their risk factor. Conversely, HPS, due to their reputation and value, are less risky to invest.

Affordable: Low-cost shares are more affordable for investors who are currently making their way into the market. They may soon increase their investment in those shares. On the other hand, in the case of blue-chip stocks, sometimes, there are restrictions for entry of new investors. Many investors also cannot increase their investment in those shares.
Regulations: SEBI (Security and Exchange Board of India) monitors the movement of all shares. HPS, being in the headlines, they always face more and more scrutiny. However, low priced shares do not attract that much attention. Most of the times, they are not even registered in major stock exchanges and do not have to file with SEBI. Low regulations and compliance create a lack of reliable information to make investment decisions.

High-priced shares actually have their advantages and privileges. Nevertheless, low-priced shares still lure investors. how?

– Often an investor argues that he can buy a lower amount of shares in a certain amount in a certain amount. Some of them have shortage of cash. Then they prefer to buy more shares than quality.

– Many investors believe that a low-priced stock has a better chance of doubling.

In addition, according to the trend, many low-cost shares have generated huge returns. Investors often focus on the price to equity (P / E) ratio when making investment decisions. Lower priced shares have a relatively low P / E ratio, which means that the investor has to pay a lower amount to buy the shares of that company. It attracts more investors.

Which stock gives higher returns?

HPS vs low priced shares

Returns matter the most to investors. The retail price of a share is not always the best indicator. While in the case of low-priced shares, their price may double, but this is rare. On the contrary, it has been observed that HPS worth more than Rs 500 have shown much better and higher returns. This has been observed for both short and long periods. For high-priced shares, investors need a much more significant investment in the beginning.
Although high-priced shares carry the risk of falling prices, they most often offer very high returns. If the price goes down due to a rights or bonus issue, they recover it and make a good profit. This will help increase your money manifold.

The conclusion

The stock market is volatile. You need to be cautious while investing your hard earned money. Before making any such investment, research it carefully or consult a market expert. Or even better, you can always reach Ample Investment AdViser for any advice or suggestions on your investment.