Share market investment is for those people who can wait for long times to realise the benefits of this particular mode of investment. The most difficult thing in share market is the timing and prediction of the market movements and even the experts fail in this task.
Anyway one strategy which I can suggest from my observations is that a prudent investor should not take unnecessary risk and only should invest in the reputed known companies which are generally termed as blue chips. I can give some examples of such companies like Colgate, Hindustan Lever, Doctor Reddy Lab, ABB, L & T, Reliance Industry, Dabur, Cipla, Ponds, Lakme, ITC, Infosys, HDFC etc and many many others.
If you go through the history of these companies, you will find that there is phenomenal rise in the share prices of these companies and they have given a good amount of dividend as well as bonus or right shares time to time. They are the real wealth creators. But one has to keep them for 15-20 years to reap the real benefits.
One thing which is also very important in this field is that one has to invest in a basket of companies rather than one company because business environment is a strange place and we do not know when a company due to unfortunate reasons become a thing of past.
I remember one incident 20-25 years back when a company came in the field of wind energy and seeing the scope of that many people bought the share of that company but soon the presumed economics in wind energy area proved wrong and the company closed its operations and the investors suffered huge loses.
So share market investments are a high risk investments and one has to invest only in a bunch of good or excellent companies.
Thoughts exchanged is knowledge gained.