Everyone in this world like to make more and more money without investing time and effort, But an old proverb "NO PAIN NO GAIN" is correct. 90% investor gains a small amount in first small investment and then invest a hefty part of their saving in second investment without studying and doing a research in a stock or mutual fund. After that they either book loss or stay invested for a long time so that there money is recovered. Many new investor also invest a big amount in a stock when it is near to its "LOW", without even knowing why it have plunge from HIGH to low.
As a investor first decide the mode you like to invest monthly or on every market dip. After then decide the amount of money you would like to invest, without affecting your household or nearby month expenses. Don't invest the money which is required by you or your family in next coming month. Smaller time frame increase the risk of losing hard earned money.
After deciding the Mode of invest and the amount of money to invest, Choose a Brokerage House. Keeping in mind you are an investor, not a trader. Best is to stick to some big player like ICICI Direct or HDFC Securities.
All of the experts says always invest in market in SIP(Systematic Investment Plan) mode. To do a SIP investment you can either switch to a mutual fund house or make your own portfolio. Both of the mode require time and effort so that you can select a good fund or stock.
After selecting a good mutual fund, you cannot make sure that this time also it is going to give growth to its holders. To ensure it track it also on fortnight basis.
If you like to create your own portfolio then you have to invest both time and money in doing market research and then purchasing the stock. Remember always stock picking is also a skill and it also improves with experience. Always start picking up the stocks of field in which you have experience like real estate agent can start with real estate companies, Pharmacists can start with Pharma companies etc...
A good portfolio should contain about 10-15 stocks. Never invest the whole amount in one stock. Always invest every month amount in 2-3 stocks purchasing any quantity between 1-100. Always set a limit of number of stocks in your portfolio. Never go beyond that limit, As it too hard to track all of the portfolio stock news, results and dividend. One more thing to be taken care of while making your portfolio is, make your portfolio from multiple sector like Banking, IT, Metals etc, not Just one sector Banking.
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