Investment in stock market needs some skill, that skill can be knowledge, financial analysis, mental skill & most importantly patience during panic situations.
What is stock market?
It is nothing but a fight between two persons. One is greedy & the other is fearful. When the greedy becomes more greed, buying takes place and when fearful investor becomes more fearful , selling takes place.The big question in every investor mind is how to invest???
Invest Systematically through SIP
When the markets move up or down. That doesnot mean the corporate earnings or fundamentals of Indian economy has changed overnight. Market has its own nature of being volatile.
Buying stocks systematically through SIP or buying Mutual funds through SIP route helps any investor to take the advantage of Rupee Cost Averaging. By this, an investor is able to buy at every fall or every rise of the market & invests hassle free leaving aside the work of timing the volatile stock markets
Because retail investors doesnot have the risk apetite or financial acumen to Research & invest, by opting for SIP, they are leaving this job of timing the market to the experienced fund managers & get 18% to 20% return & make their money 5 times in 10 years.
So a investor who has invested 1 Lakhs in Mutual funds should expect to make his money 5 Lakhs by the next 10 years by the magic of Compunding
Investors generally tend to panic in volatile markets & this reminds me of two emotions which every investor shows whenever markets falls or rise & that are greed & fear. Greed under market uptrend & fear under market corrections. If a investor is able to overcome these noises, he can earn money 5-7 times in 10 years by investing when others & stock analysts on Television are talking about further market correction
Visit my official website also for more & better articles http://www.wealthbazaar.in
If you like reading this article, kindly read
- Best Mutual Funds in India
- Dont Trade but Invest for Simple reasons
- Systematic Withdrawl Plan
- Rupee Cost Averaging takes you to become a Crorepati
Regards
Mayank Gupta
mayankportfoliomanager@yahoo.com
http://www.wealthbazaar.in
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