Mutual Fund - What is that ?

• Mutual Fund - 

                    In simple words, it is a "wise man's portfolio." A person diversified his investments into stock market (with various sectors), debts, bonds, and cash. The mutual fund does the same through which the investor gets diversified portfolio y investing in them. Investor doesn't need to diversify their portfolio if they are investing in mutual funds, they diversify the investments they got. Also, there is a person "Fund Manager", who manages the funds, where to invest ? , when to invest ? He takes care of risk and everything.

                   The names of the mutual fund it's self suggest where they invest their corpus (money invested by the invested in the a fund) as equity Large cap fund, small cap fund, multi cap fund, arbitrage and debts funds. 

                   If the fund name is equity then it invest in equity i.e. stock market by 60% to 75% of the corpus which are able to give more returns over period of time. There are some sub categories - Growth, Dividend. 

                  Growth says that the fund totally works on the stock market, there is no promise that the investor will get any dividend. Growth funds gives awesome returns with some risk.

                  Dividend says that it gives dividend same as the stock market. There are some options here - 

• Daily Dividend - Theses funds gives dividend daily where the amount is very tiny.
• Weekly Dividend - Dividend receives by the investor are by the week.
• Monthly Dividend - It acts as pension to investor. A monthly dividend option is good.
• Also there available of more options like quarterly and yearly.

                 Some investors don't need dividend, for them there is option too as dividend re-invest. If you choose this option them your invested amount returns will be equal to the growth fund returns.

* whatever the dividend option you choose daily, weekly, monthly or any, if the fund has the money then only they will distribute it to the investor. The dividend money came from the intra-day trading done by the traders from that fund not from the corpus.

               The mutual fund manage by the firms those are called as Asset Management Company (AMC). The top AMCs in India by the corpus are ICICI Prudential, HDFC Mutual Fund, Birla Sunlife Mutual Fund and SBI Capital.

                The good returns and wealth are generated by the growth funds, although their NAV (sum of total of market value of the shares hold in that portfolio including cash, liabilities, dividend received, etc.) are relatively high as compared to the dividend option funds.

              In next we will see some calculation, through which one can generate weath with minimum amount of investment.

Investor Strategy in Stock Market

Hello Again,
There are some points that investor has to keep in mind. Those are -

1. The stock market is all about the ups and downs.
2. Control your panic mode in down stream.
3. This involves risk and all investment is monitored by you (investor). 

         So, if you loose money that's your fault.  The money is not easy to earn and making the money to work for us is the hardest part. So you need to do some research because you will not just blindly gave money to someone.
            "Stock market is the hardest way of earning easy money" I heard this some where and that's true.

Strategy of investor -

1. Put all the money in a stock which he think is better. Well to find that stock do some fundamental and technical analysis, I will come to it later. and then wait for the profits.
2. Divide investor capital in two parts. Invest one part now and keep second part to invest when there is down fall in market; this needs patience. This will make the average price to come down.
3. Third one is different, let's assume you buy a stock and it breaks the top. It is moving up, so investor will pour more money. This will happens several times, but doing this will result in the average buy price will increase that's no an issue but in down fall the investor must book the profit as it breaks the support.

         First strategy looks ugly, second one is good but the third one is smart. I will prefer third or second.

         Well let's combine both 2nd and 3rd strategy. The combined strategy will be -

• Make two parts of money. One to invest and one for down fall.
• let's assume you will have some amount in 3 months of period to invest. Purchase the stock in every 3 months of period if it breaks the resistance and book the partial profits when it breaks the supports.
• At the last wait for the downfall buy at every down price from the money you saved for the down fall.
• This will gave you better chance of profit booking and having the stock at lower price.
• Here you have to monitor where your money is flowing.

     We, got the strategy. Now there is a term Diversification.
Diversification means Divert the money in stock market. The ways here are sectors like banking, IT, technology, beverages, automobile, FMCG, etc. Divert the money into these different sectors so that your investment will stay protected. One sector may be in loss but another one will balance it. Diversification is must or you may end up loosing the money.

Two things here Diversification and Investment strategy. When everyone one is booking the profit, that's the perfect time to buy, please never forget it.

Tata... See you later

What is Right Time to Invest ?

Right Time to Invest -                                            

The First thing - You want to be an investor that's good.

There is no any king of phenomenon like right time to invest. All you need is a good company to invest which will not get liquidize in short time (I mean delist from the stock exchange or fall in price over the period of time. ) i.e the company with the strong fundamentals and good growing potential with consistent positive earning and dividend also.

Investor doesn't worry about the down falls in the market because investor invest for long period of time and yes, traders do worry in another word panic situation is equal to down fall in market.

So, when you got the money, invest it.

The next post will be about  How to invest ? What strategy investor should follow to stay in stock exchange ?

See you later. 

What is Gambling ?

Stock Market -
Who should enter in it ? - The one who wants to be rich in no time ? Is this a gamble ?

Yes, it is gamble. If you don't know about the stock market, where it is heading. Someone told you to buy that stock and you did, without knowing anything. That's a gamble.
Never trust on other's perspectives in stock market unless he or she is expert in it.
And remember Stock Market is a sentiment game. no one can predict what's the people sentiment would be.
I like to suggest invest with Equity cash. Don't go for Derivatives that's a pure speculating - a Double Gamble. In equity cash - you can hold as much as you can like forever.
In derivatives there is full risk that you can lose more than you invest. Great thing about it is "There is no limit to Earn in Derivatives and no limit of loosing too."

Enjoy the Ups and Downs.

About the Blog

Hello Everyone,

      I am creating this blog to share the effect of news on the stock market or company stock market price. I will try to cover as far as possible but my main focus will be on India's Stock Market i.e. NSE and BSE.
I will also do share some plans which will helps the reader to create wealth over the period of time.
This will also contain some people's views and quotes from the various securities.
      The information on this blog is from my experience. We all know the Warren Buffett, I don't know which strategies he applied, but here I will talking about my real experience in stock market.

Thank You and Great year Ahead.