"Manage the downside; the upside will take care of itself" - Donald Trump
Investing is an art but most of the retail investors fails to master it. Investing is not simply putting your money somewhere with the aim of get-rich -quick attitude. It requires a lot of planning and control on your personal finance.
Investing is an art but most of the retail investors fails to master it. Investing is not simply putting your money somewhere with the aim of get-rich -quick attitude. It requires a lot of planning and control on your personal finance.
Investing is not gambling. A ‘real’ investor does not simply throw his hard earned money randomly. It requires lot of research analysis and time. It is smarter to buy and hold good stocks then to engage in day trading.
There are several methods available for investors.Investing in Bank Deposits,Term Deposits and Bonds are much safer investment in times like the market is in sever down trend . But we failed to include the effects of inflation in our returns, after taking the inflation effect the investor hardly earn 4-5 % return. This kind of investment are safe for investors who wants to protect their money with a small portion of appreciation. But for the investor who wants to create wealth for his generation, stock market provides an excellent opportunity to build wealth over a period of time.
How to find stocks that fit's your need?
By The Size: Large cap companies are well established and stable.But this companies have limited growth penitential then small cap companies. In case of small cap companies which operative in niche sectors can give good return.But the problem will come when these companies expanding in to new areas.
Growth Vs Value Companies:
Growth Vs Value Companies:
A growth company is one that expanding in faster phase with regards to their earnings against unfavourable market condition or economy. If you are smart enough to catch a successful growth company in their early stage, you can create a huge wealth. A ‘ Value’ company is in general trade lower that the average earning due to economic condition.
The first sign of an growth company is constantly increasing it's market share against all odds and they are in emerging or niche sectors. The "sector" in which these companies are also plays a vital role in choosing growth and value companies.
Sectors to watch
Insurance : Huge Potential but most of the companies unlisted
Health Care : India is favorite for cost effective medical treatments
Food Processing : Huge untapped market
Alternate Energy: Yet to take off
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