Investment Planing

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

  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