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Share Tips
Stock market is good investment proposition provided you take your investment decisions diligently. There is no doubt about the fact that stock market investments have risks but then if you can choose the right stocks and invest on them at the right time you can overcome the risk and make good profit from your stock market investments. But for that you need to keep regular watch on the stock market and the index and all other related aspects that directly or indirectly determine the stock prices. Here we are discussing some of the practical share tips that will effectively help you make profitable investments at the share market.
Decide on your objective – Before you invest in stocks the first thing that you need to decide is your objective i.e. what you want to get from your investments on the shares. This should be the primary concern of any investor as it will determine the nature of investment. If you are looking for investments that will give you good return after a significant period of time, then you should invest in the growth stocks. These are generally the stocks of the blue chip companies that will give you good return after a few years. If you want earn from your investment at regular intervals then you should go for the dividend stocks. But if you are serious investor who does regular trading and earn from the day to day trading you should go for the daily trading or margin trading.
Choose the stocks – For selecting the stocks it is important that you carry out a thorough research on the company in which you are about to invest. Do your fundamental research well to become sure of the financial standing of the company, the business policy of the company and above all the future prospect of the company. It will give you a clear idea of the future of the company as well as your potential profit from the investment. For doing the fundamental research you have to study the annual and quarterly report of the company carefully. You have to also have comprehensive knowledge of the company and the overall industry.
Do technical analysis – Technical analysis of the stock prices is the most important aspect of investing in the stock market. Basically technical analysis is done on the basis of the past performance of the stock. The price of the stock, volume of trading, high and low prices all these aspects are taken into consideration while technically analyzing a particular stock. Based on these data a graphical presentation and made. Then on the basis of the graphs, the price of the stock is predicted. The technical analysis is the most crucial factor for determining the entry and exit point of any stock.
Do not go for rumors – Most retail investors in the stock market fall for the rumors that do the rounds of the share market. Do not buy stocks only because your friends and colleagues are buying that stock. If you are not sure of the potential of the stock you should never go for it. This is also true fro the selling of the stock. Do not get panicked and sell the stocks in hurry if you are not sure about the future predictions. So have faith in your self and your analysis and decode yourself for your share market investments.
If you do not have the expertise or the scope of selecting the stocks and taking your investment decisions, there are so many stock market analysts who provide effective share tips either free of cost or for nominal fees. In fact most of the brokers provide the research and share tips for free to their clients. You can benefit from these tips as well. But it is always advisable that you follow the tips for quite sometime before you actually start making investments based on these tips. In that way you could be sure of the viability of the stock tips that you get.
Fund Tips
Fund or mutual fund in general is a great way to invest in the stock market if you are not interested in directly investing in the stock market considering the associated risk. Though mutual funds also have some risks attached to it as it primarily depends on the stock market, it is considerably a more secured investment option if you compare it with stock market investment. Moreover, if you do not have the time to regularly follow the stock market and have little knowledge about the stock market, investing in fund is the best possible way to earn higher returns. But to ensure a good return from your mutual fund investment you have to choose the funds carefully and here we are presenting some fund tips that will help you to select the mutual fund.
Choose the type of fund – There are different types of mutual funds that are available in the market. Firstly, the funds can be divided in two categories – actively managed funds and passively managed funds. The actively managed funds directly invest in the equity and these funds are managed by fund managers who look after the investment and portfolio of the fund. While the passively managed funds are controlled by the up and down of the index. In India the actively managed funds are largely popular amongst the investors and they are proved to be more profitable. There are different types of actively managed funds and each of them has unique features. You can either invest in Growth funds, Equity funds, Hybrid funds, Retirement funds and so on. The decision for choosing the fund largely depends on your requirement, your investment objective and your preference. For example if you are looking for greater return and ready to take more risk and the keep the investment going for a few years, the Growth funds are the best option for you. But if you want to reduce the risk then the Hybrid funds are suitable for you. In these funds the total amount is distributed in the stock market as well as in other financial organizations where the risk is lower.
Choose the mode of investment – You can invest in the mutual fund at a time or you can periodically invest in the fund through Systematic Investment Plan or SIP. You can either invest in a new fund or join a fund later. The mode of investment needs to be decided on the basis of your portfolio. While one time investment has some benefits like you can get the whole lot at a specific price, the SIP has the benefit of increasing and decreasing the amount to be paid every month on the basis of the NAV and the performance of the fund.
Choose the fund – Choosing the right mutual fund for investment is a key decision to take. It is always necessary that you take the decision after considering all the pros and cons. The first thing that you need to do is select the sector in which you will invest. But ideally you should choose a fund that evenly distributes the money in all the potential sectors. You should always thoroughly check all the details of the mutual fund before investing. You should take a note of the performance of the fund for the last few years. You should note what are the sectors that the fund is investing? You should also know about the companies in which the fund invests in. The best way to invest in the mutual fund is to choose a fund that is managed by the reputed companies who are in the business for considerable time and have excellent history and instance of fund management.
All said and done you have to remember that mutual fund investment is not free from risk associated with the stock market. So you need to follow these fund tips diligently to ensure that you choose the right fund for investment and make the investment according to your requirement and portfolio.
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