Where to (Investing in stocks) start from ?

POSTED BY Viral D ON December 18, 2012 1:25 pm COMMENTS (5)

Hi All,

I want to start investing in stocks from next march (Preparing for that, from now). For first year I am planning to invest 2500/month. From next year onwards, it will be 5000/month.

Concern right now is, I have only theoritical knowledge for all related things. (Also, I started mock tradings of stocks through MoneyControl.com)

Question is: Should I consider any Mutual Funds first, or go directly along with investing in Stock?

Any good book to refer for? (Currently reffering: Investment Analysis and Portfolio Management – By Prasanna Chandra). Any other Books or online sources?

5 replies on this article “Where to (Investing in stocks) start from ?”

  1. TheZionView says:

    Viral D

    I cannot explain any better than in the below link on how and what to do before you start to invest in stock

    http://www.safalniveshak.com/2-year-course-in-smart-independent-investing/?utm_source=rss&utm_medium=rss&utm_campaign=2-year-course-in-smart-independent-investing

    You need the patience and its cruel world out there.

  2. BanyanFA says:

    Viral,
    An amount of Rs. 2500 per month will not give you much diversification effect, but certainly it would cap the overall risk to a small amount. If you want to play in the stock markets to see how different intermediaries work and how volatile / unpredictable a market can be plus underestand that only long term investors make money – go for a stock based investing. The only reason I am suggesting is :
    1. Money at risk is not big (you are not gaming for several lakhs). If you learn key principles, you may end up loosing a percentage of your funds in that process. however, if you understand those key principles, the money lost is worth it.

    However, the advised approach is via MFs if you don’t have time, keen desire to know how stocks work.

  3. You need to first define what acc to you safe is. There are different MFs for different purposes. Unless the purpose is clear general questions make no sense.

    You dont need a demat/trading acc. You can approach a MF directly to invest

  4. Viral D says:

    What are the good MFs (which are safer) ? Also, For MFs Do I need to have Demat and Trading Acc. (Sorry for silly questions)

  5. Manish has an ebook on this. The value investor by Ben Graham and many others listed in Safal Niveshak blog

    Better to start with MFs first and branch out. Everyone will make mistakes including the experts and if you put all your eggs in stocks you may have a big loss. MFs will cushion that to a certain extent.

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