My fiance wants to invest but I want to stop him..I am scared coz I have heard people become bankrupt also in the process..I believe its unnecessary tension..
2007-02-21 02:30:32 · 23 answers · asked by Anonymous in Business & Finance ➔ Investing
Depending upon your risk appetite and time horizon for investment, you may invest a certain portion of your total investment portfolio in the stock market - selecting scrips carefully. You must differentiate between investment and speculation, while in stock market. Have clear profit targets - stop losses and encash your investments accordingly. Don't try to time the market. Start with small amounts and increase progressively - realising profits simultaneously.
2007-02-28 17:51:04 · answer #1 · answered by helpaneed 7 · 1⤊ 0⤋
The Devil is in the details...this is a famous saying.
It is wise to invest in the stock market, BUT how you invest is important. YOU WILL LOSE YOUR MONEY
By buying stock based on tips
by buying OTC stocks from the pink sheets
by buying the stocks you read stories about in the papers.
By buying penny stocks
by buying non producing resource stocks
by day trading
by getting involved in Forex or futures market
By investing in something beyond your risk tolerence.
by, not being diversified (all you eggs in one basket)
You are wise to invest for the first time, A no load, Balanced Mutual fund (usually from a bank)...This fund is a diversified basket of stocks, bonds and money market instruments, it is low on the risk scale of investments, and low in volitility.
you should start with $1,000 and add to it as often as you can, It will probably bring you 8% per year over the long term, some years better, some years less, plan to keep it for long term.
in the meantime either learn about, markets, types of investments along with their risks, learn economics, Macro/micro) how world events affect markets etc etc...or get a financial advisor to help you when you have more investable money.
2007-02-21 04:38:54 · answer #2 · answered by bob shark 7 · 1⤊ 0⤋
If u are scared of investing in stock market, do not invest without some basic knowledge of the market. For persons like u there is a method of investing in the stock market indirectly through Mutual Fund Schemes. The returns in Indian M.F.s are good at present.
Of course some knowhow is required to identify the better schemes. You may visit www.valueresearchonline.com and www.easy mf.com to track best schemes. I am benefitted by investing in M.F schemes which are 5 star rated by valueresearch. Mutual Fund Insight, the monthly magzine gives more information on the Indian Mutual Funds. Please try it.
2007-02-27 02:55:12 · answer #3 · answered by arpita 3 · 0⤊ 0⤋
Well, if your fiance is intelligent enough to chose the right scrips and the right time to invest then you dont need to worry about anything. but it will be a good idea to diversify his investments in at least 4-6 scrips and also invest at least 25-30% in bank deposits or mutual funds. this will prevent your fiance from the remote chances of becoming bankrupt.
ya u are right, it can give tensions, though not unnecessary. its your money and you have to be concerned about it. i suggest, he should start with mutual funds, then after one year or so, he can start investing in stock market.
2007-02-26 11:40:13 · answer #4 · answered by Anuj Paul Gosain -- India 2 · 0⤊ 0⤋
If you have more than 20 years to retirement, absolutely. Not once over 20 years did risk-free securities (Treasuries) outperform a broad market stock index. Basically, if you are willing to be patient, you will be rewarded.
I don't know how investing in the market could make you go bankrupt unless you are using margin or options. If you invest in a basic, diversified ETF you should be fine. If you want to learn a little about the benefits of ETFs and how you can use them in your portfolio, there is a short article at http://www.valuestockreports.com/021907.htm
Hope this helps.
2007-02-21 04:31:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
The stock market is a great place to make money. if you are smart about it and do some reading Like Investing for Dummies and 24 Essential Lessons for Investment Success.The ones that loose money are in High risk area of the stocks Like P/E OVER 80, price to book over 5.Or they just use margin accounts and make bad calls with options if he sticks to just stocks and reads he will do fine.
2007-02-21 10:10:12 · answer #6 · answered by franksprung 3 · 1⤊ 0⤋
If Investments are made wise, nothing to bother more. Best option is tell your fiance to invest not only shares but put some amount in mutual funds, lic policies etc. such that risk factor would be very less.
2007-02-28 07:22:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It is wise to Invest in Stock Market...
But have to be very carefull in choosing a stock to invest and to take decision...
or else.. ask him to invest in Mutual Funds.. Decent return with Minimised Risk !!!..
All the Best !!!
2007-02-25 22:51:23 · answer #8 · answered by Jin 4 · 0⤊ 0⤋
I think its a good investment. You never know with the stock market, but if you have some money to gamble for a few years than I say go for it!
2007-02-21 02:38:15 · answer #9 · answered by BOOTS! 6 · 0⤊ 0⤋
Yes provided you are a patient and long term investor. The way to start is to go for SIP of mutual funds. You need spend lot of time and energy to track the stock market on a daily basis.
2007-02-21 03:57:55 · answer #10 · answered by Raghav 4 · 0⤊ 0⤋