Stock research for a small investor

POSTED BY raju ON February 25, 2012 7:40 pm COMMENTS (4)

Hi All,

I have been reading so many articles about stock picking and research before picking etc.

I would like to know, is it necessary and worth for a small investor (ex:1-3k per month to start) ,
opening demat account(maintaining-yearly charges) and spending lot of time to do research on stocks.

Recently, I read in one article,saying that research needs to be at deepest levels.
How can a small investor can get all this info…
Again, concepts of profit booking, long term investment, averaging ,which is good for him?
when to do(timing).

Again,every investor is attracted to returns of stocks compared to indices (sensex,nifty and mutual funds),will feel that would have invested in particular stocks to get better returns.

Most of the small investors try their hands in stocks and get burnt and stop investing completely from stocks.

Also, all broking houses give their TIPS only to big investors,as they get good brokerage charges only from big investors.

How a small investor can start investing and continue with it for a long term?
Is it worth really and not to miss good returns?

Any views???

Regards,
Raju

4 replies on this article “Stock research for a small investor”

  1. Rahul says:

    If you want to directly invest in stocks you should know the basics of balance sheet, profit & loss statement and cash flow statement. If you know the basics you can use sites like http://craytheon.com to know the fundamentals of a company and invest directly.

  2. Dear Raju, The easiest option is to invest in MF for an ordinary small investor. Yes for the ones who want to walk a different path, direct investing is a route. How many of these different people ‘ll be able to complete their journey & to reach destination is any body’s guess.

    Thanks

    Ashal

  3. bharat shah says:

    answer as you are knowing through a few selected diversified equity funds route.

  4. BanyanFA says:

    Probably thats the reason why small investors should use Mutual Funds. If you intend to invest 1-10K per month, then I would rather suggest you to go via MFs as with this small amount you wont be able to have adequate diversification on your portfolio plus would spend a disproportionate amount of time in stock research. Mutual Funds invest your funds into shares and hence indirectly you are able to invest into stock markets and leverage on the high growth sector in the economy.

    Regards
    BFA

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