Internet companies have real sales and have profits and growth to offer. The gains of the internet stocks are here to stay and the last few years have been glorious. The Cloud stocks have reached extremely high and it makes sense to invest.

The gains should be based on long-term considerations and the investors will have a question - Where will the investment be in the next 5 - 10 years? Will e-commerce and internet companies be good investments?

Top 8 companies 

Facebook

This company began to build a network of data centers a decade ago. It owns its Cloud and does not pay rent. Everything is built on cash flow from advertising.

Equinix

This is a data centres real estate investment trust. It builds and buys data centres with debt or equity and offers the profits directly to the shareholders. 

Service Now

This is one of the hottest Cloud services application companies. Since 2019 the price of the company’s stock has more than doubled. The shares of this company trade at $536 with a market cap of $104 billion. 

VPC Impact Acquisition

This company is going public through a special purpose acquisition company (SPAC). The company is valued at $2.1 billion and the new company will be listed on NYSE - Intercontinental exchange. Bakkt is a marketplace built on the wallet app by the company.

Amazon

The company has a share price of $3230 and is worth $1.6 trillion. This is considered a very high level for a retailer but not for a tech stock. It is currently a leader in various fields like groceries, entertainment and unmanned delivery. 

Alphabet

This is a big name among internet stocks. The company started focussing on Google Cloud where it rents its infrastructure, platform and applications. It also opened in new regions around the world. The company's price-earnings multiply because it delivers superior growth.

Nvidia

The shares of this company were pushed beyond $500 when it bought Arms Holding from Softbank for $40 billion. The company’s sales for the year were $16.5 billion and the company is worth around $330 billion.

Airbnb

This company has created a new industry and has the potential to remake the lodging industry. The shares of the company trade at $168 with a market cap of $99.7 billion.

Appreciate offers one of the best stock market apps to trade online in stocks. The app provides AI-based recommendations on where you should invest.

In India, there are many options to invest and you make investments to make your money work for you. It may be difficult to decide where to invest but diversifying your portfolio is equally important. Diversification helps to spread your investment across different asset classes which helps to reduce the risk of market volatility.

Diversification helps you to tap into different investment opportunities and you can benefit from the different market conditions. The different options for diversification available are Systematic Investment Plan (SIP) and Fixed Deposits (FD). Each of the investment avenues comes with its set of advantages and disadvantages. You should understand how an option can benefit you.

SIP

• SIP offers a simple and disciplined way to invest in mutual funds. It allows you to invest a fixed amount of money regularly (monthly or quarterly) in mutual funds of your choice. The benefits offered are as follows:
• When you invest with SIP you do not have to worry about timing the market. As you invest a fixed amount you can buy more units when the prices are low and fewer units when the prices are high. This helps to average out the cost and reduces the impact of market volatility.
• SIP offers you the benefits of the power of compounding when you invest for the long term. Compounding allows you to reinvest your dividends and capital giants which help to grow your wealth exponentially.
• SIP offers flexibility, you can start with small amounts and you can increase the amount as your income grows. SIP offers the option to automate your investments thus making the process hassle-free.

FD

• FDs have been popular with conservative investors who are looking for stability and assured returns. The benefits offered are as follows:
• FDs offer a fixed rate of interest for a specified period. This helps you to know how much you will earn on your investments. It is a safer option for your hard-earned money.
• FDs safeguard your principal amount and provide capital preservation. This makes them an ideal choice for risk-averse individuals, You can plan your financial goals with certainty.
• FDs can also be a source of regular income and you can get income monthly, quarterly or annually depending on your needs. This can be useful for retirement or when you need a fixed income stream.

Appreciate offers an online trading app that helps you to invest in mutual funds online. It provides automated SIP to help you achieve your goals.
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How to diversify your portfolio?