Is SIP for Stock Investment Possible?
The mutual funds industry has made SIP or systematic investment plan a very popular mode of investment for people of modest means who wish to grow their wealth outside of the traditional modes of investment like Bank Fixed Deposit schemes, National Savings Certificates and LIC policies. But the same people haven’t really extended the same principle to equity investment.
While mutual fund investment has its advantages in terms of perceived low risk, stock investment
Should You Be a Bull or a Bear?
Even those who don’t invest in the stock market have probably heard their friends, acquaintances or family members who do, use terms like bulls and bears. They would probably even know that these terms allude to share prices given that there is so much talk in the market about things like a bull-run, a bear cartel and so on.
Those of you who invest in the stock market would of course know that a bull denotes an investor who expects the share price to rise
Why Secondary Market is better than Primary Market?
The advantages of investing in the primary market are primarily reaped by promoters, who are able to start new ventures and expand their current ones. For the investors plonking money in an IPO is really an act of faith. You first hope that you will get an allotment of shares and then you hope that the share debuts at a decent price. Sure one doesn’t have to pay any brokerage, transaction fee and stamp duty in the case of primary market investment. But on the whole
Should You Invest for Dividend or Profit ?
For most people investing in the stock market is all about waiting for the prices of the shares in their portfolio to reach a targeted level and selling them off for a profit. Very few, except if they are the promoters of a company with very large stock holdings, look at their stock investment with the point of view of earning regular dividend.
Part of the reason has to be attributed to the fact that dividend distribution being dependent upon the company board&r
Which is Better - Shares or Mutual Funds ?
You might have heard that it probably makes better sense to invest in mutual funds than in shares, as the former are professionally managed by experts who will take informed investment decisions on your behalf. While there may be something in this, especially for those who have little knowledge about investing in stocks and shares, the fact of the matter is that where you should invest depends upon the kind of returns you want to obtain on your investment in comparison t
Is investing in the Stock Market the Right Thing to do for the Middle Classes?
This is a bit of an odd question. It is like asking, whether the middle classes have the right to create enough wealth to live a comfortable life. A contrarian would then counter question-do the middle classes have the right to face financial ruin? As somebody who has seen the stock market both create wealth and cause ruination in the lives of investors from both the middle classes and the moneyed ones, I would say that the question is not the right one to ask.
Why You Should Never Be Adventurous When it comes to Investing in the Stock Market
The thing about investing in the stock market is that it is extremely easy to do so. That can be a dangerous thing, as it can get you addicted to the process of stock trading recklessly. However, the golden rule of investing is that you can only invest when you are certain that doing so provides you with an inherent advantage. Now that is precisely what you have no way of knowing in the case of stock-market investment.
So what’s the way out? Never in
Importance of Patience in Investing
Patience is the key to investing as it demands a considerable length of time from an investor in order to finally show up the results. The act of investing closely resembles the task of growing a fruit orchard, where the orchard owner has to go through the process of choosing a fruit for his plantation followed by carefully planting the seeds and waiting for the time when trees will finally bear fruits. However, there are times when a tree or some of the trees do not produce
Multibagger may be defined as stocks which multiplies its values in terms of its purchase price i.e. the net worth is increased by a number of times by its original value. Five things you should consider in the process of identifying a multibagger.
- Debt of the company: Check the debt of the company with respect to equity and whether the same is increasing or decreasing. Also is the company able to leverage its Debt and Equity or not?
- Look for trend in Sales: Incre
Fundamentals of A stock
No matter whether you are trading for short term or longterm, it is wise to research on fundamentals of a companybefore investing. Now the question would be what you shouldlook for in Fundamentals? Here are five key factors to look forwhile checking fundamentals of a company:
- Check the trend of Earnings, Compare it on quarterly basis and see how the trend is whether increasing or decreasing.
- Have a close look at Revenues or Sales of the company as it would very well th