Make no mistake markets are not correcting but are in bear phase. The kind of fall witnessed is phenomenal in such a small time. However, this will not stop us from making money. Our crash protector turned green on 10th of October 2108 with market opening itself after continuous red from 4th September 2018 onwards.
We all want to make money in stock market however not all of us have the best stock ideas or the skills to identify the best stocks. So, we go by the advice of our friends/ relatives or take services of an investment advisory. Some of us just copy the portfolio of any the top investor. In this post we will try to examine why it’s not a good idea to copy the portfolio of top investors. Before I start, let me give some background due to massive reach of print, electronic media and internet, lot of information is available on portfolio stocks of top investors.
Are you a risk averse investor?
Well who likes to lose his hard earn money in market downtrend.
But downtrends are integral part of stock market and despite all these downtrends market returns has beaten all other fixed return financial instruments by handsome margin on any 5 year rolling return basis. When it comes to investments the biggest risk in life is not to take risk at all. So, the need of the hour is not to reduce risk to 0 but to manage it to such a level that it does not becomes a speed breaker in the way of your wealth creation Journey.
If you have been following my earlier posts you might have seen how our new product which promises high return at minimum possible risk is gaining momentum. You can expect a return of 4-6% per month on an average at a risk which is much lower than any good equity mutual fund. Continue reading “Stocks for high return with lowest possible risk.”
Markets are making new highs but my portfolio is going down. This is the single most heard sentence in 2018 whenever we analyze stock market performance. Reason is mid cap and small cap which constitute 80% of stock universe is going down n down (yes, it’s slowdown for broader markets) and large Caps??
Market behavior is very strange since Jan 2018. If one looks at Sensex and nifty the returns are positive and this will make us think that market is at worst sideways or not as great as it was last year. But the moment we look at broader market (Small cap and mid cap index), things completely change. They have already witnessed market crash and are down significantly.
Mutual fund investing is relatively safer and better way to invest specially when you are cannot do your own research to pick quality stocks. Most of us in invest in mutual funds and expect a return of 12-15% however if we follow these simple steps, our returns from mutual funds will increase by 100% and risks will reduce by 50%.
Our markets witnessed sharp correction in February and march 2018. This was not a crash but a correction and the long-term trend still remains bullish. However, for many of us this was enough to create panic and take wrong decisions. Some of us sold our mutual fund holdings or stopped SIP. So now when the markets are recovering and we are witnessing a pullback rally those who sold or stopped SIP for MFs are now regretting.
Stock market can be rewarding if you choose right stocks at right time. At the same time it can also wipe your principal if you invest without through research. Most of us invest on advice of friend, Tv expert or some free sms tip send in bulk without much research and lose money.
It’s been quite some time we launched our Artificial intelligence enabled stock recommending product. In this article we will analyze its performance statistically. For those who are still not aware about this product let me explain it briefly. This product was designed to serve the investment objective of “Heads you make windfall gains, Tails you don’t lose much” and this is exactly what is has did.