Skip to main content

New to Investing

By
Some times people do feel that investing in stock market,Mutual Fund etc are rocket science.However this is not true !!!!
A lay man also can do this......


how ????

Also people get confused with few buzz!!!! word like debt , portfolio, ipo etc...

Here in this post i will stress on those parts where you will get to know many thing as such :)

Here we need to understand what is investment ???? And why people generally invest ????

The money you earn is partly spent and the rest saved for meeting future
expenses. Instead of keeping the savings idle you may like to use savings in
order to get return on it in the future. This is called INVESTMENT ... Is not it !!!

The purpose of investment broadly is due to either

■ earn return on your idle resources
■ generate a specified sum of money for a specific goal in life
■ make a provision for an uncertain future

The question arises when we have a question when can we start investing???

Ans is as early as possible.... probably from your school days .... from your pocket money ......
then make it a practice for life time till your death with discipline....

Then for how much duration we should invest ??
as long as possible.... :) compounding of your money .....

Then WHAT ARE THE THINGS WE SHOULD TAKE INTO CARE WHILE INVESTING ?????

1. obtain written documents explaining the investment
2. read and understand such documents
3. verify the legitimacy of the investment
4. find out the costs and benefits associated with the investment
5. assess the risk-return profile of the investment
6. know the liquidity and safety aspects of the investment
7. ascertain if it is appropriate for your specific goals
8. compare these details with other investment opportunities available
9. examine if it fits in with other investments you are considering or you have already made
10. deal only through an authorised intermediary
11. seek all clarifications about the intermediary and the investment
12. explore the options available to you if some


Labels:

Comments

Post a Comment

Popular posts from this blog

Why our Mutual Fund Portfolio needs restructure now ?

By
Why Mutual Fund portfolio now require restructure …. It is just because of below 3 reasons 1.     Introduction of LTCG 2.     Categorization of Mutual Fund by SEBI 3.     Introduction of TRI (Total Return Index) Introduction of LTCG : That means frequent buy and sell of funds will put you in the trap of taxation and on a long run basis your return will reduce. Because each time you redeem you will pay tax and while reinvesting you need to pay upfront expense (applicable in both regular and in direct). Also we need to stop running behind those funds which are giving best return in recent times by churning your portfolio again and again may become fatal. So now your responsibility becomes more to choose right fund and stick to it for a lengthy duration. Categorization of Mutual Fund by SEBI : After new guideline from SEBI , a large cap should only consist of large cap (no mid and small cap) Similarly s...
1 comment
Read more

Top Tax Saver ELSS fund to invest in 2014

By
ELSS is Equity Linked Saving Scheme mutual funds which come under 80C for tax savings. ELSS funds offer triple benefits of tax savings, capital appreciation and tax free returns to the investor. Few things you must know: • It is diversified and comes under 80C for tax savings.     • The return and dividends for ELSS are tax free like in PPF. • This has luck in period of 3 years unlike in PPF for 15 years. • In the PPF, the investor must make at least one contribution in a year or pay a penalty. However, there is no such compulsion in ELSS funds. • The returns are entirely dependent on market .However Some of the funds have grown 2 times in 3 years and 3 times in 5 years. How you can maximize return from ELSS? • Make it GROWTH option instead DIVIDEND option and choose best performing funds. • Can make it DIRECT plan in order to save commission and other expense but your agent may not like this  J • Start through SIP for cost averaging. Let...
Post a Comment
Read more

How to become CROREPATI guaranteed :)

By
Crorepati!!!!! Wow J It has been always an aspiration of all of us to become a man of crore… You can become crorepati by ·                      Win a Lottery  (not guaranteed) ·                      Marry a super Rich Girl  (cool technique but girl may ditch you before marriage                 Anytime J ) ·                      Inherit from your parents or from any other relative  (guaranteed) ·                      Buy a quality share and sit tight  (not guaranteed) ·  ...
3 comments
Read more