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  • Category: Miscellaneous

    Do you invest in shares?

    Members might be investing in shares, as a matter of routine. There are quite a huge number of people who do this very religiously.

    Am told that it is a very risky proposition. Those who have invested in shares have sometimes made money. But the game is very research oriented one and there are so many technicalities involved.

    If any member has some good idea of who to invest in shares, please do give some clues. that will help laymen to do the investment in shares. Even if a person has just Rs.3000/-, is it possible to invest in shares? If yes, how?

    Please do clarify.
  • #660373
    You can invest even Rs. 3000/- in the stock market. There are many shares which can be purchased. But it is always better to take the suggestion of a person who is well versed in the stock market.
    I invest more in ULIP than direct shares. We will be safe. But if you can take some risk and if you want quick returns you have to go for share market.
    I have taken some shares also but I will not study the share market. I will take the suggestion of my friend who is having a lot of experience in this market. I will do as per the suggestion of him.
    These days the best investment is to put money in real estate business.

    drrao
    always confident

  • #660376
    Investing in shares is a high risk area. It is not every one's cup of tea.

    There is no sure shot method to earn by investing in shares but plenty of ways to lose money and many people have burned their fingers in this area.

    Still, theoretically there are some points often advised by the experts and I am only repeating them here for the benefit of all.

    If a company does well it's share prices will rise on a long term basis and will be profitable for the investors. Such companies reward the investors with dividends, bonus shares, right shares etc time to time. They are the real wealth builders.

    Now, how we know that a company will flourish in future. It is the most difficult thing to predict. Technical obsolescence, political situation, export and import and many other factors decide about the profitability of a company and if due to adverse conditions it's product do not sell in the market then company goes into red and the share holder suffers miserably.

    To cope of against this uncertainty people prefer to invest in mutual funds which invest in a basket of a few companies so that even if a few of them go bankrupt the average yield remains. These mutual funds also churn their portfolio time to time.

    One can do oneself this exercise and invest the amount in some good companies and not only in one of them.

    There are some blue chip companies and we hope that because of their dynamic buisness environment they will do good in future also and on that belief we can purchase shares of those and in long run can get the advantage of capital growth. Some examples of blue chip companies are Hindustan Lever, Colgate, ABB, Dabur, P & G, Infosys etc and there are many more.

    Share market is for those who have patience. History is full of such occasions that share market nosedived and remained stagnant for a long time and people in a hurry and worry sold their holdings and when today they look back they find that they have missed a goldmine by selling them long back in low prices.

    Knowledge is power.

  • #660377
    In the past, the share market was an interesting area to make money. Now it is very difficult to make money through the share market. It won't fetch any good money. It is very risky to invest money in share market. We might gain or lose marginally.

    In 1996, few agents made me invest in UTI mutual funds. I had spent about Rs. 5000/- to buy UTI shares. Alas! I don't know what is the present position of those shares. No one could guide me to get the latest on my investment.

    Also, as suggested by a member, don't get into real estate business. There too, you are likely to lose your hard earned money.

    Don't be greedy to make money. Invest your savings in any nationalized bank, and enjoy your life with whatever interest you get. Be satisfied with what you have.

    If you have enough unaccounted black money, then get into share market.

    No life without Sun

  • #660419
    As per my experience share market is for those investors who can stay there for a long time and can afford substantial amount to invest in a mix of topmost companies to reduce the risk of downside.

    There are many people in our country who have made a fortune of millions by judicious investment in share market. If you are interested, you can see case history about them in the internet. I have read about these people and one of the prominent figure among them is Mr R Jhunjhunwala. It is very inspiring and motivating.

    Thoughts exchanged is knowledge gained.

  • #660422
    The subject has inspired me to add one case history. It is not about any famous or wizard investor but an employee of a PSU known to me.

    This person told me that his father used to invest only in shares and was comfortable with that. When this person got an executive job in a PSU he wanted to save money and asked his father about it. His father advised him to invest only in the shares of good companies.

    He told me that as per the advise of his father he started to invest in a plethora of companies slowly and steadily and within 20 years he was financially ahead of his colleagues and friends. I asked him what are those companies and he quickly told the list which though I do not remember completely now but were top companies of that time like Bombay Dying, ACC, Colgate, L & T, Gujarat Ambuja and many more like that.

    How much truth in that but he told me very confidently that by the time he retires from the active service he will have a market value of shares in the range of 10-15 crores while an ordinary employee at the retirement time will have hardly 2-3 crores including his provident fund, gratuity and lifelong savings. These figures looked impressive to me.

    So may be if one is lucky and stays long in this game and chooses the right mix, one can be benefited financially.

    Knowledge is power.

  • #660424
    I had invested money in share market 2 years back and used to actively watch the share market so that I may sell and buy the shares. But that was a total loss as I could not earn money from the investments.

    One can earn money from the share market provided one has to closely monitor the market and invest money. There are lots of sites where one can watch the live rates of the shares also one can watch the past trend of that particular share.

    I had bought lots of shares of companies like whirlpool, Maruti Udyog, Ceat tyres etc when their rates were lesser than the average rates and when their rates reached a nominal rate I sold them which yield me some profit. But because of the lack of the funds, I stopped investing in the shares, also the lack of time didn't allow me to buy shares further. This is sure one can earn good money from the share market if invest properly.

    Sanjeev

    " It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

  • #660425
    Neeru and Umesh,
    They are the lucky and fortunate guys on this good earth. It is the fate written on their pate that they should own crores in their life through share market. All on earth can try their luck after taking some risk.

    No life without Sun

  • #660434
    Investment in the share market is gambling business and one may not anticipate the behaviour of the market when it will take down turn and the money so invested is lost giving any sign of its erosion at any stage. To keep invested seems to be strenuous task since it would be a time consuming process for the investors to track the performance of the company in each day. To be precise, not for each day but watching the result in multiple times indicating wider fluctuations interms of profits or loss. This further aggravates stress and this could have a telling effect on one's health.
    There are definitely a lot of profit making companies such as Larsen and Tubro, Infossys, Dr Reddy Labs, Dabur etc offering handsome returns to the clients but that too would depend upon a particular phase of boom.
    I have seen lot of investors in panic mood always thinking in terms of the financial health of the portfolios in which they have already invested. Such an attitude altogether alters their basic temperament and they may loose their interest in the normal activities being taken them earlier. Hence a safe investment in the Nationlised - Bank in terms of fixed deposit though interest rate being marginal seem to be very effective investment in terms of safety.

  • #660437
    Most of the people think of making huge money through shares and they think it's like a gamble. Actually, it's not any gamble and a good investment option if done carefully. When you are investing, you have to follow your investment. Investing in shares is not like any fixed income schemes and you must constantly watch the activities of the market.

    If you think you are going to make some quick bucks by investing in shares, it is possible but there are high chances of further loss because of the temptation involved there in earning quick bucks. For example, suppose within a short span if somebody gets 2 Lakhs by investing 50 Thousand, the very next day probably he will try to invest 3 Lakhs by taking a loan of another 50 Thousand from a close friend. You have to follow the charts in the share market and study the trends continuously and then only you will get a good return.

    Most of the people suffer loss because of the greed associated with making some good profits sometime during their investment period and by following what others are saying rather studying the market themselves.

    Sankalan

    "Life is easier when you enjoy what you do"

  • #660445
    Investment in share requires insight, foresight, analytical ability vast knowledge about microeconomics, macroeconomics and trend in various sectors. Personally, I don't have much knowledge of these complex matters. So, for equity investment, I go for investment in equity mutual funds, mainly in bluechip funds and equity-based hybrid funds.

    My investment in direct share is negligible (as on date, it is less than Rs. 50,000/-). I invest in one or two large-cap companies and I am satisfied with 20% profit. I don't go for multi-baggers. Till now, my profit from the direct equities is negligible, because my investment in direct equities is also negligible.

    Come on, have a fight. Don't shoot and scoot.


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