Most of us want to invest in equity to make fast money. The
reason is simple, all data shows that equity has given very good returns over a
period of time. But then all good returns have their share of risk. It’s looks
too easy, whom do you trust on the advice to invest. One of the best things to
do is invest in a portfolio of equity shares and review them on a regular
basis. Get rid of the ones not doing well, this is the most difficult part for
most investors, they tend to hold on to them. You do not review your equity
shares daily, it will be futile. If you had the time, then you and the rest of
the world would have been doing only this. If you look at the list of wealthy
people, you would have noticed that their wealth is in the form of equity
shares. They invest their money in shares of a company, which they believe will
grow, the company might be their own or of someone else.
So if they can get rich by holding shares, why not you and
me. The challenge is picking the right shares. These wealthy people, believe in
making money by participating in the growth story of the company, you and me
can also do the same. But then we are lazy and want tips. What tips do you
want? Look around, what do you and your neighbor’s use daily? Buy shares of
those companies. If you trust those products to use daily, then the company
would be growing for sure, so you should participate in the growth. There are
many persons who give tips or follow tips given by many, but only a few make
money. This is because only those who stuck with the shares made money. Daily
trading does not make money in the long run, unless that is your full time job.
So what should one do? The easiest way would be to go for a well-diversified
mutual fund scheme, where the fund manager does the job of stock selection.
Best would be a index fund, here the fund manager does not need to do much, the
index is managed by the stock exchange, all he has to do is ensure that his
scheme is in tune with the index.
No comments:
Post a Comment