Equity Investing - Tips for beginners

Buy Tax Saving Mutual Funds Online

 

Current open Infra Bond Application form

 

   The stock markets attract fresh investments every day due to their draw of higher returns over a long term. However, they have been in a consolidation mode since the last couple of months, and therefore offer a good opportunity for long-term investors planning to invest in equity or equity-based instruments.

   These are some of the significant aspects of building and managing an equity portfolio:

Planning    

Realistic expectations: First of all, it is very important to have realistic expectations when you are investing in equity-based instruments. There is no doubt equity-based investments have yielded extraordinary returns during certain phases in the past, but it is important to keep in mind that past performances may not be repeatable in the stock markets.

   Time management: Investments in equity and equity-based instruments are not completely passive in nature. They require some active tracking and involvement from the investors, to identify the right opportunities to enter and exit.

   Risk appetite: It is important to understand that investments in equity-based instruments are risky and in adverse conditions investors may face a loss. That is why it is advisable for you to invest only your risk capital in equity-based instruments. You should also understand your risk profile to identify appropriate instruments. The risk profile of an investor depends on many individual factors such as age, financial background, earning visibility and stability, and family background.

   Diversification: You should allocate a percentage of your total investment portfolio to equity-based instruments. You should diversify and balance your total investment kitty among various instruments such as life insurance, medical insurance, tax-saving instruments, commodities, property, and other safer instruments such as bank fixed deposits etc.

   Timing: It is not possible to predict and buy only at the lowest level of the markets. Therefore, investors should buy in smaller quantities at regular intervals in order to ensure a good average entry price on investments.

Picking stocks    

Identifying sectors and stocks for a portfolio is not a difficult task. However, it requires some patience and tracking.

   These are some steps you can take to choose stocks for your portfolio.

   Prepare tracking list: The first step is to prepare a tracking list of stocks from various sectors. You can pick the stocks for your tracking list considering the tips offered by market analysts, stock brokers etc. Investors should analyse the basis of the recommendations rather than follow the advice implicitly.

   Track stocks: Once the tracking list is formed, investors should keep tracking the news and developments around these stocks including quarterly results, management interviews, analysts' columns etc. This information is easily available. Once you feel comfortable with the stocks and they appear to be good buys, you can start investing with a long-term perspective.

   Discussion group: This is a good way to analyse and identify stocks to invest in. Due to the dynamic nature of stock markets, it is very difficult for an individual to track all the significant market events.

   Investors can form a small group or participate in discussion forums to analyse equity investments. This gives a good platform to learn through mutual interaction and be attentive to many market developments.

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. HDFC TaxSaver
2. ICICI Prudential Tax Plan
3. DSP BlackRock Tax Saver Fund
4. Birla Sun Life Tax Relief '96
5. Reliance Tax Saver (ELSS) Fund
6. IDFC Tax Advantage (ELSS) Fund
7. SBI Magnum Tax Gain Scheme 1993
8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

 

------------------------------------------------
How to apply to IRFC Bonds?

Apply for IRFC Tax Free Bonds forms below

Download IRFC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

------------------------------------------------
How to apply to HUDCO Bonds?

Apply for HUDCO Tax Free Bonds forms below

Download HUDCO Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

 

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you