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Reference links
There are various web sites,
magazines, daily, TV channel where you get valuable news on stocks,
companies and the business. These are the tips for investment. Yet you
have to judge the validity and time frame that they apply. Then take
decision on investment.
Apart from the above web sites, there are paid
sites where your get recommendations.
And all private sector banks, brokerage firms they
have Portfolio Management Services they will invest your money on your
behalf and keep track of it.
Mutual Funds
If you don’t have sufficient time to study the
companies, market and track stock prices, you can entrust your money to
mutual funds. Mutual Fund companies employ analysts to study, track the
companies & market. Hence their decisions are more knowledgeable than
ours.
The risk in mutual fund is less compared to stock
market. Though the NAVs (Net Asset Value) of follows the stock market
trends. In long run the mutual funds yields high returns. There are to
options viz growth option, dividend option.
Past performances of mutual fund
One get expect average of 20-30% returns from
mutual fund in long run. Sometimes you get 60-70% also with relatively
risk.
Systematic Investment Plan - Minimize the risk
As we have seen basic principle of investment is
buy-at-low, sell-at-high. But if you buy-at-high you will incur loss.
Since it is difficult to time the high, low points, systematic
Investment Plan is designed. Under this scheme every month you have to
invest in mutual funds. What happens is few of your installments goes at
high points, rest of your installments go at low level. So, as an
average the risk of buying-at-high is limited. |
