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  • Category: Miscellaneous

    Is there no other go other than entering the stock market

    The way the interest rates are falling down for deposits in banks and post offices, one wonders, where to invest profitably. In recent times, the boom in the stock market, especially after Corona had wrecked havoc and the market had fallen badly, many have opened a demat account and trying their luck in equities, mutual funds and the like. What about our friends in ISC? Is anyone of you gravitating from the safety but poor returns of bank savings to the high decibel but volatile returns of the stock market?
  • #749256
    Stock markets are not for everyone. They do not react the way the investors expect. Those who lost money in stock markets are more than those who made a profit out of it. Unless an investor stays invested for the long term, the chances of losing money are high. Stock markets are good for only those who can absorb losses and remain in the market. There are rumors that some manipulations occur in the stock market dealings. They are certainly not for senior citizens whose risk-bearing capacity is low. As far as I am concerned, I tried my hand and lost a good amount of money. Mutual funds are somewhat safe than equities and other forms of the stock market. I do not suggest to anyone to enter the stock market because the interest rates on bank fixed deposits have come down.
    " Be Good and Do Good "

  • #749258
    Thanks KVRR for your well-sounded advice against entering the stock market for novices like me, who know little about how things work there and how people are able to manage huge returns. Since you have your own experience of suffering a loss there, it will be a worthwhile caution for anyone, who might be daring to enter the stock market. At the same time you have also mentioned that by investing long time, we can eke out some profits. So why does not everyone apply such a strategy and cut their losses? Will also like to hear from others, who have a positive experience to relate.
    Patience and perseverance pays

  • #749259
    It is true that investment is increasing in the stock market due to declining bank interest. Because there are a lot of stockbrokers in our country, on the other hand, a lot of people make a living by trading in the stock market. Retired people have started investing here to earn an income due to declining interest in various fields. So they have to come to this market. However, If you want to make money by investing in the stock market, get involved now without delay. To start this investment you need a trading/brokerage account and a Demat account (short for 'dematerialized account'). The trading account makes it easy to trade shares listed on the NSE and BSE. As well a Demat account is required to avoid the hassle of counterfeit shares or papers and to save the shares. Demat accounts are used to hold shares and securities in electronic format, especially for buying and selling shares online.
    A new investor must face this question: what to invest in and when to invest? The key to investing is to buy less and sell more. A well-planned strategy can tell you what to buy and when to buy and sell. Learning basic analysis and technical analysis will help you in making such decisions. Initially, invest in a company that you know a lot about. But you have to stick to it consistently.

    Believe in the existence of God the superpower.

  • #749262
    Bank and post office deposits are safe and are low risk area but the return is very less. Still for the retired and old age people it is suggested that they should remain invested in bank and post office schemes to get a risk free return albeit a low one. The people in their old age are having a small numbers of years remaining of their lives and it makes sense to not feel greedy at this juncture.
    For the young people they have to invest a part of their income in mutual fund or shares depending on their capacity and on a safer side it is said that about 30 percent of one's investment funds can be easily invested in these lucrative stock markets.
    Please note that stock market or mutual funds are not for short term but are long-term investments and if one is thinking that one will be able to make money in short term by manipulating and observing the market then one is grossly mistaken because by doing that one will lose a large amount of money and one's fingers will be burnt badly.
    Company deposits which offer higher rate of return on investment are equally risky and many times these companies don't pay the principal amount on the maturity of the investment.
    So the investment today is full of so many risks and uncertainties and one has to be very wise and prudent in taking decisions of investing one's hard earned money in these different avenues.

    Knowledge is power.

  • #749263
    Thanks Dhruba, for explaining in detail about account opening through demat and the other things concerned with entering the stock market. That was very much helpful. It seems you are regular at investing in shares. So what has been your experience? Unlike KVRR, have you been able to reap some profit from it? Also, since the stock market is not everyone's cup of tea, will like to know from you as well as from KVRR, for novices like me, whether education and training will help. For senior citizens can surely understand, it's no good taking risk, but for others, who still have some age left with them, can training help?
    Patience and perseverance pays

  • #749265
    If one has the spare money invest in the gold or real estate. Gold and real estate are the safest bets at this moment as there cannot be hike in appreciation in other sectors. Buy gold coins and later it can be deemed for cash or buy gold bars and later it can be made to jewel. Likewise buy some up country plots which has the scope for development in future and real estate is always fetching and the land would not deceive a person. Or if you have good money, then buy shutters in the market area and see that good tenant occupies the place or even let it out to the ATM for banks. These are the best ways to utilize the spare money in a profitable way but do not invest on the banks and deposits which has no future. And stock market cannot be trusted by a common person with no experience and hence ruled out.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #749267
    In the stock market, we are not sure of substantial returns since behaviour of the market remains quite unpredictable and it does not move on as our expectations. For the senior citizens, having less number of years for their survival would not like to undertake any financial risk. If the loss is of colossal nature at this ripe age, they cannot tolerate the same any more. However considering the rate of interest of the fixed deposits of the Banks as of now, a part of money can be invested in some known mutual funds so that the money parked in such funds is at least higher than the existing bank rates. If the present boom continues in the share market, we can reap benefits with some of the portfolios of mutual funds. Though it involves risks, but it might not be to that level as witnessed in equity markets.

  • #749277
    Keeping money in the Share market is always a risky proposition. People who can afford losses only should go for investment in the share market. If today they lose, tomorrow they may gain. But when a senior citizen who retired from service and wanted to invest the savings in a safe instrument so that every month he will get some fixed money in the form of interest may not go for share market. It is not his cup of tea. For him even though the returns are less, keeping money in a bank or post office as the fixed deposit is the best option.
    The age of the individual and his earning capabilities are very important in deciding the instrument in which one can park his money. These days the best option appears to be Mutual Funds. But we have to do a lot of research before taking a decision about the saving in MF. How that particular fund is working and what are the returns the investors got are to be studied before deciding on the company in which we can deposit our money.,

    always confident

  • #749281
    I would suggest diversifying your investment portfolios and to put money on those shares and schemes which are less risky and at the same time can give double-digit annual returns. A few of the shares which I can suggest are those related to agriculture and fertilizers. At least these shares will never lose your money.

    I do not spend all my money in the stock market but only a portion and so far, this has benefitted me in comparison to what I would have been made of when the same had been kept in the bank. In order to go for any stock, I observe the past one-year behavior and the established date. The established date gives me an idea of how old the stock is. If the stock is 5-10 years or more then losing all money becomes an obsolete scenario while the past one-year behavior shows when this will be a downtrend for purchasing and when this will be trending upward for maximum returns.

    Although the above can not be taken for a 100% safe transaction other dimensions will also be essential to think of before final proceedings.

  • #749347
    Thanks, everyone for providing your opinion on the various aspects related to investing in the stock market. Good to hear that at least Ved Prakash Anand has been able to profitably invest in the stock market. If I have to sum up all of your opinions, it is very clear that it will be a risky affair to invest in shares. Mutual funds could be somewhat safe but then one has to research a lot and find out the ones which may give me returns more than bank fixed deposits. Company fixed deposits are a strict no-no for me, as I have heard of many tales where people have lost their entire principal, forget earning interest.
    Patience and perseverance pays

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