Sunday, September 21, 2008

Investment Tips

With the market enjoying the free falls and bungee jumping, its not so simple for the an investor to decide what to do and what not to do . But again, discipline always helps no matter what happens to the market.

I take every oppurtunity of a market fall to pick my favourite stocks again. Why ? Because I know the companies that I invest in. I mean financially. But for those who don't have the time for the research, the best thing to do is to invest through Systematic Investment Plans [SIP]. Invest in a chosen mutual funds and in small amounts. Maybe as small as 1000/- per month is good enough per month.

Diversity is good in such times, and probably investing in more than one MF is better than investing all at the same time.

Make sure that some percentage of investment, say 30 percent is in Fixed Deposits or RD. It definitely pays off.

Gold is also a good to buy, but considering the new high that gold has touched, maybe not the right time.

In a general scenario, there are two ways to do investment.
One, go which everyone is doing and second, do the reverse. I do believe in doing more of the reverse. But that ofcourse comes at a risk. But then thats what makes the difference between the good and best.

Invest slowly and regularly
Discipline is what matters in every step of your life.