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Become Profitable in Indian Stock Market

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What Happened every time when we invest in stock market. There are two possibilities. 1. When you invest, Market will crash. 2.When you invest, Market reach to all time high We are happy when we invest and stock make high price, But what happen when we invest and market will crashed or not move to out direction? You will loss capital when market crashed or loss some part of your capital. Also you feel bad when you loose money through investment. So, what’s the better way to invest in stock market?. Answer is Systematic Investment . Divide your capital in to 3 parts. Invest one part at a time. So one would prefer holding for a shorter period (3 to 6Months) to make use of short term price fluctuations in markets. So consider the following approach to invest, if you want to make decent returns with less downside. Lets assume you have Rs.50,000 capital. Divide 50,000 in 3 parts. That means one part have Rs.16,666. This way you reduce risk of losing capital. Even if There is major downfal
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What Is Stock Market?

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  From previous articles on investment planning and where to invest , we conclude that Equities as an asset has the potential to generate high returns, hence it is prudent to include equities in the investment portfolio. Having said that, how do we go about investing in equities? Before we dwell further into this topic, it is extremely important to understand the ecosystem in which equities function. Just like the way we go to the neighborhood supermarket to shop for our daily needs, we go to the stock market to shop for equity investments. Transact in simple terms means buying and selling. The main purpose of the stock market is to help you facilitate equity transactions. So if you are a buyer of a share, the stock market helps you meet the seller and vice versa. Now unlike a supermarket, the stock market does not exist in a physical form. It exists in electronic form. You access the market electronically from your computer and carry out your transactions. There are two main stock ex
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Where to invest money for retirement

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In the previous article we figured the reason why to invest, the next obvious question is, where should one invest? and what are the returns can expect by making these investments? The first thing when it comes to investing is to choose an appropriate asset that matches your risk profile. We will know later about risk profile but here are the most popular assets one can invest in : Fixed income instruments Equity  Real estate Gold  Whichever way you look at it, these are the only 4 viable investment options available.  The trick is to make sure we invest wisely, to ensure our investment results in a reasonable rate of return for every unit of risk undertaken, the risk and reward of investments go hand in hand. For example, If an investment is considered risky, then it most likely offers a high return. If an asset is considered safe, then the returns will be moderate too. So risk and reward are like two sides of the same coin. Fixed income Instruments Traditionally Fixed Income instrum
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How to do Investment planning for Retirement?

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Investing your hard-earned money in assets, which can generate enough returns to sustain through your retired life is very important. Investing is a long process and you need to have good planning to save and invest throughout your working life.   Before learning why we need to invest, let me tell you what would happen if you will not invest or not have investment plan in our life. Assume you earn Rs.   50,000 per month and you spend Rs.   30,000 for  living a regular  life, so you have Rs. 20,000 left every month. Assume that you will not invest that Rs. 20,000 and keep it as hard cash money. Now, the question is, with this practice how much money will you have by the time you retire? We ignore tax as of now for easy understanding. Your company gives you a 10% salary hike every year. The cost of living increases by 8% year on year We assume that you are 30 years old and plan to retire at age of 50, so you will work 20 more years in your life you will not work after the age of 50. Your
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