Why should I invest in equity?
Thanks to my historic interest in equities, I have some strong views on equity…like the following:
a. a small broker cannot make money in broking alone
b. a big broker can make money by MONEY lending to traders
c. equity is a good investment in the long run
d. short term trading is NOT investing
e. making money in equity investing is NOT as difficult, but requires information, some diligence, notes taking, ….etc.
f. ‘why should i invest in equities’ is a question I have answered a million times..just go to the side of the blog..and click on ‘equities’ there are at the least 30,000 words just on that category
g. ‘will only equities make money for me’ and ‘equities did not make money in Japan and USA for 10 years…what will happen in India’..are all questions which have been answered
To summarize:
1. Create a good portfolio (if you do not know how, choose a good mutual fund)
2. Invest regularly (SIP)
3. Do this over LONG periods of time (say 3-5-8+ years)
4. Over a 10 year period these 3 steps should give you a return about 2-3% over a pure bonds portfolio. That is a challenge, or rather, that is a guarantee.
Banyan Financial Advisors
Very well written concise article to enforce positively and assertively the importance of Equity in one’s portfolio. I have often come across that people burn their fingers when investing into Equities directly – just because they work like traders and not investors and end up investing in high beta stocks which ends up taking their funds and in some cases their life’s worth of saving.
For such people Mutual Funds is the best option. MFs wont provide overnight doubling of money, but would make sure that consistent investments via SIPs is rewarded with market beating returns.
dilip
just fumbled on to this link
http://capitalmind.in/2012/04/chart-the-great-indian-stock-market-story-was-only-5-good-years/
hoping to see your comments.
dilip
just fumbled on to this link
http://capitalmind.in/2012/04/chart-the-great-indian-stock-market-story-was-only-5-good-years/
from another blog article
http://capitalmind.in/2012/05/sensex-rolling-5y-returns-at-2-21/
hoping to see your comments.
Jagbir
5. REBALANCE your portfolio from time-to-time.