If you are new to market then i would suggest you to go for Mutual fund.
Concept of mutual funds is simple: You invest the money in mutual fund company, they will invest your money in some other business. They share the returns with you. There are different types of mutual funds- equity, income, debt.....
You can choose required one depending on risk taking capacity.
I suggest you to for SIP- Systematic Investment Plan. Its safer and gets you decent returs.
You can logon to http://www.mutualfundsindia.com/ to know more.
There are many companies which offer mutual funds like Franklin Templeton, Aditya Birla, Kothari pioneer, SBI, ICICI Prudential...
Any query you can ask me.
Happy investing.
Cheers,
Jay
2006-11-15 23:06:25
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answer #1
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answered by Jay 2
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for a new comer to the stock market first thing is to know what you are doing or going to do. otherwise you will come back here and say stock market is just a place where people like you lose thier pants and shirts.
first things first. educate yourself about the market. know what are your limitations. if you do not invest now, you are not going to lose anything. dont be in a hurry. do you think trading is easy way to riches. may be. but many have lost. why? because they were in a hurry to grab as much money as they can, without thinking that you could lose as much money.
in mutual funds also you can make or lose money.after all they also invest in the same market, same instruments. fund managers have given good return in the past, may be they will do the same in future too.but that is not a guarantee. they could underperform or even go into negative territory also.
so the first step is educate yourself. dont jump to some fancy techniques - both fundamental and technical analysis. what made money for someone may not suit you. awareness is the key. that saves a lot of hardships.
Raja Krsnan
rajakrsnan@yahoo.com
2006-11-16 00:15:04
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answer #2
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answered by Raja Krsnan 3
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For someone just beginning, mutual funds would be a better choice because the risk of making a big mistake are much less. The mutual fund will allow you a diversified investment position, whereas buying just one or two stocks will subject you to specific risk. Of course, that specific risk could also turn into a specific reward if you hit a good one.
2006-11-16 03:41:09
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answer #3
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answered by Anonymous
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Newcomer should always invest in diversified mutual funds to understand the behaviour of the market before jumping directly into stock market.
2006-11-15 23:31:49
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answer #4
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answered by Ven 4
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It depends on your risk taking capacity and the amount of money you have at hand. if you want to play the market go for share trading. if you want to shoot the gun from someoneelse's shouder go for mutual fund.
2006-11-15 22:52:16
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answer #5
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answered by cv 3
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Mutual fund or etf (better) until you know enough.
2006-11-16 04:50:39
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answer #6
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answered by vegas_iwish 5
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Pl click my name & go thr answers
2006-11-15 23:06:09
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answer #7
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answered by dinu_pawar 5
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