Skip to main content

Basics of Stock Markets - 3

How much Amount to Invest?
There is no fixed rule as such which says the minimum amount to invest. Ideally if you are able to start with 100K also it would be good but there are small investors who cannot afford that. If you have even 25K or 10K you can start investing but remember that the returns will not be significant.

If you invest 100K and if you make 20% profit then you get 20,000 Rs where as for 10K investment the return is only 2000 Rs. However you can start with 25K and then slowly increase the amount.

How much money can we make?

At present stock markets are giving great returns. Some stocks have returned even 100% in one month time. However you should be happy if you get 25% returns per annum. Contentment is important and if you try to make fast bucks remember that you can loose money also quickly.

Many investors would like their investment to become 10 times in one year. Remember that this kind of returns are rarely possible and so one should have contentment and should be happy with a set target of 25% or something similar to this.

When to Buy and Sell? Concept of Zero Cost Portfolio

We cannot predict the exact top and bottom for a stock. However the best method is to try making your portfolio zero cost. Apply this strategy for all stocks and then you can be risk free. However you need good amount of money for this.

Example : You buy a stock A of 100 shares at 100 Rs. If stock moves to 125 Rs, you can sell 80 shares to get back your capital. The remaining 20 shares will be zero cost for you. If you build your portfolio in this, you can enjoy good returns and it will be risk free for you.

However you should try to read the situation and then sell. You can sell the same stock at 200 Rs and make 50 shares free of cost. However see the market conditions and then sell.

You should also select stocks which have good growth story for long term and then keep making zero cost shares in those at every fall and rise.

Popular posts from this blog

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...

Tax on Kisan Vikas Patra Returns

  Taxation of Kisan Vikas Patra The interest earned on Kisan Vikas Patra (KVP) doesn't enjoy any tax exemption   The interest earned on Kisan Vikas Patra (KVP) doesn't enjoy any tax exemptions. The interest earned from it is taxed as per the Income Tax slab applicable to the investor on redemption. That means an investor in the highest tax slab will pay 30 per cent tax on the returns from KVP . Also, 10 per cent of the interest earned would be deducted as tax deducted at source (TDS). ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fu...

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...

Special Fixed Deposits

Fixed Deposits Invest Online   One after the another, banks have been slashing interest rates on fixed deposits. In the last year alone, fixed deposit rates for the two-three-year tenure have fallen by 1-1.15 percentage points. But, some banks offer special fixed deposits at higher rates. Here's taking a look at some such deposits. What's on offer The Kuber 400 days deposit from the State Bank of Hyderabad offers 7.85 per cent per annum. This is 10 basis points higher than the 7.75 per cent offered by the bank on its 1-year to less than 2-year deposit. You have to invest a minimum of ₹10,000 in the deposit. There is no penalty for premature withdrawal as long as the deposit has remained with the bank for at least 7 days. Canara Bank has a 444-day and a 555-day deposit, both of which offer 7.85 per cent. This is higher than the 7.75 per cent rate on the bank's over one-year to less than five- year deposits for amounts less than ₹1 ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now