GP Baroowa
I am writing on investment after a long gap. This is because the share market has been very volatile for the last couple of months. Any new investor investing in such a market is likely to face problem.
Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for at least four years. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from the IMF. However, gold should not form more than 20% of the total portfolio of any person. The Gold ETF can be bought by senior citizens if they have holding capacity. The gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for the future. So, pattern of investment would be different. The age of a person would determine the investment pattern. I don't advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under systematic investment plan (SIP) . This is a good time to invest in the market as it has come down. Many investments guru believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviour. My recommendation would be to invest in SIP at least for two three years and hold the investment at least for three to four years.
A few senior citizens have asked whether they should desist from entering the share market at all. My views are clear that senior citizens can enter the market provided they have experience of market fluctuation and have high risk taking capacity. Senior citizens should enter the Senior citizen saving schemes (SCSS) where even now returns are 9%. The maximum limit of investment is Rs 15lakh. The interest of bank fixed deposit, for three to five years period, is around 7.25% to 7.50% only. At present not only equity is doing badly but debt and income funds are also not doing well. So it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue several times. Please do not enter the share market just because of your neighbours have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? Most of the people do not have patience to study and to follow up the turn and twist of the market. One thing is sure if you have patience and capacity of withstand the risk this is the time to enter the market through SIP.
Readers can send their feedback to gpbarua@yahoo.co.in
I am writing on investment after a long gap. This is because the share market has been very volatile for the last couple of months. Any new investor investing in such a market is likely to face problem.
Under the present low market situation I would like to recommend our readers to invest only if they can hold the money invested for at least four years. The investor who does not have any investment in gold may think of buying gold. The gold is going to be scare in the medium term. The RBI has already started buying gold from the IMF. However, gold should not form more than 20% of the total portfolio of any person. The Gold ETF can be bought by senior citizens if they have holding capacity. The gold investment might give a decent return within three to four years time.
Many of our readers have asked where they need to invest. I would like to remind all our readers that investment depends on the risk taking capacity of individual persons, as well as their planning of resources for the future. So, pattern of investment would be different. The age of a person would determine the investment pattern. I don't advice any of our senior citizen, of more than seventy years of age, to get into equity based investment now. But this time for our young readers above 28 years of age to get into buying equity provided they can keep on investing under systematic investment plan (SIP) . This is a good time to invest in the market as it has come down. Many investments guru believe market may tumble down to a low of 12,000. But I do not believe in such calculations because till now no scientific device has been evolved to correctly predict the market behaviour. My recommendation would be to invest in SIP at least for two three years and hold the investment at least for three to four years.
A few senior citizens have asked whether they should desist from entering the share market at all. My views are clear that senior citizens can enter the market provided they have experience of market fluctuation and have high risk taking capacity. Senior citizens should enter the Senior citizen saving schemes (SCSS) where even now returns are 9%. The maximum limit of investment is Rs 15lakh. The interest of bank fixed deposit, for three to five years period, is around 7.25% to 7.50% only. At present not only equity is doing badly but debt and income funds are also not doing well. So it would be appropriate to hold the wealth with you, and invest slowly with a clear vision for future, after proper study and planning.
Many readers are asking whether they should invest in mutual fund or in stock. I have explained this issue several times. Please do not enter the share market just because of your neighbours have done so and have minted money. Before entering the share market ask yourself whether if you have time to study market fluctuations. Do you understand macro and micro economic values? Most of the people do not have patience to study and to follow up the turn and twist of the market. One thing is sure if you have patience and capacity of withstand the risk this is the time to enter the market through SIP.
Readers can send their feedback to gpbarua@yahoo.co.in
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