Investors can enter the market but through systematic investment plan to get desired results from the market. During the month of March when I recommended my readers to enter the share market and buy large cap mutual funds under systematic investment plan (SIP), a section of readers were not convinced, refusing to invest in the market considering the volatility. But, now the market is gradually picking up showing signs of recovery.
A few young readers did a substantial investment in the market. But, now, the market has started giving positive results. The Sensex at present is flat at 15,500. My young readers gained handsomely.
The most important trait is that investors must have patience accompanied by their risk taking capacity. Those investors who entered the market in the month of March earned 30% profit already. There would be a correction soon but that would be followed by a gradual upturn and Sensex may go up to 17000 points by April 2010. At this point of time I would like to remind my readers that by 2010 June the Sensex would see a new high. So on every dip in the share market try to buy some share or the units of large cap mutual funds. Younger persons can buy 60% equity whereas middle aged persons should by 40% if they have risk taking capacity for longer years (at least for five years).
One thing must be kept in mind that these are only calculated guess work. Nobody in the world , not even Warren Buffet , can predict exactly the behavior of the share market and similarly with the mutual funds. The advisors and experts can wish but cannot predict.
The Reserve Bank Governor conceded recently that Indian economy will revive faster than other countries of the world but it was not possible to predict a date. It is a fact that India would be the growth engine of the world economy sooner or later. So, we need to keep patience and move ahead and invest in a determined manner. We need to ensure safety but agree to take a little calculated risk should money be made for future .However safety and prudence should be the watchword for economy would take time to revive.
It is absolutely necessary to switch investment in order to earn better returns. Some mutual funds provides better return for a year or so and later fails to earn better returns. Once Magnum Global Fund and Prima Fund was the darling of the investors .Today, these are tired funds. Switching of fund provided better earning scope always. The investor must try to protect his investment all the time. Investor must reshuffle his investment from time to time periodically, in case he wants to maximize his return. Investing money is only first step in financial planning. The second step is the most important step and that is protection of invested money.
Investor must redeem his units in mutual fund as soon as he makes 30% return. The Golden rule of investment is that do not invest all your money in Share market or in mutual fund. The small investors must buy mutual fund only through systematic investment plan(SIP) for long term.. No investment should be done in lump sum. Investors should take advise from the market experts before investing money. Investor should set an investment goal for himself and put in place an asset allocation strategy depending on the risk bearing capacity. You must invest in equity or equity link instrument if you are young. The older persons should be more cautious while investing in equity. No investment needs to be done in equity after seventy five.
Is this the time for investment? This is a million dollar question. I feel that there could be a correction soon and our investors should not miss the opportunity to enter the market then. If some of the investors are seating now they can enter the market but through systematic investment plan in diversified mutual fund in the opportunity and infrastructure sectors. Do consult your advisor but decision needs to be taken by individually always.
Readers can send their feedback to gpbarua@yahoo.co.in
GP Baroowa, Assam Tribune
A few young readers did a substantial investment in the market. But, now, the market has started giving positive results. The Sensex at present is flat at 15,500. My young readers gained handsomely.
The most important trait is that investors must have patience accompanied by their risk taking capacity. Those investors who entered the market in the month of March earned 30% profit already. There would be a correction soon but that would be followed by a gradual upturn and Sensex may go up to 17000 points by April 2010. At this point of time I would like to remind my readers that by 2010 June the Sensex would see a new high. So on every dip in the share market try to buy some share or the units of large cap mutual funds. Younger persons can buy 60% equity whereas middle aged persons should by 40% if they have risk taking capacity for longer years (at least for five years).
One thing must be kept in mind that these are only calculated guess work. Nobody in the world , not even Warren Buffet , can predict exactly the behavior of the share market and similarly with the mutual funds. The advisors and experts can wish but cannot predict.
The Reserve Bank Governor conceded recently that Indian economy will revive faster than other countries of the world but it was not possible to predict a date. It is a fact that India would be the growth engine of the world economy sooner or later. So, we need to keep patience and move ahead and invest in a determined manner. We need to ensure safety but agree to take a little calculated risk should money be made for future .However safety and prudence should be the watchword for economy would take time to revive.
It is absolutely necessary to switch investment in order to earn better returns. Some mutual funds provides better return for a year or so and later fails to earn better returns. Once Magnum Global Fund and Prima Fund was the darling of the investors .Today, these are tired funds. Switching of fund provided better earning scope always. The investor must try to protect his investment all the time. Investor must reshuffle his investment from time to time periodically, in case he wants to maximize his return. Investing money is only first step in financial planning. The second step is the most important step and that is protection of invested money.
Investor must redeem his units in mutual fund as soon as he makes 30% return. The Golden rule of investment is that do not invest all your money in Share market or in mutual fund. The small investors must buy mutual fund only through systematic investment plan(SIP) for long term.. No investment should be done in lump sum. Investors should take advise from the market experts before investing money. Investor should set an investment goal for himself and put in place an asset allocation strategy depending on the risk bearing capacity. You must invest in equity or equity link instrument if you are young. The older persons should be more cautious while investing in equity. No investment needs to be done in equity after seventy five.
Is this the time for investment? This is a million dollar question. I feel that there could be a correction soon and our investors should not miss the opportunity to enter the market then. If some of the investors are seating now they can enter the market but through systematic investment plan in diversified mutual fund in the opportunity and infrastructure sectors. Do consult your advisor but decision needs to be taken by individually always.
Readers can send their feedback to gpbarua@yahoo.co.in
GP Baroowa, Assam Tribune
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