$$--Share/MutualFund/Investment/Stocks--$$

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naveen_reloaded

naveen_reloaded

!! RecuZant By Birth !!
biggest mistake nooobs do ..share mkt isnt a make quick bucks n run away mkt...try to analyze the things first and see how much money can u invest safely widout risking ur daily life .........

start reading ET and keep a eye on commentary by rediff stocks ....

and first start learning by investopedia :)

thats a nice piece of advice...

sorry but my friends said investing in shares will get u lot of money than in MF`s!!!

thats y i asked..

is it really worth investing in shares .. than in some fixd bank deposit, things like that???
 

enticer86

Stay Silent!
thats a nice piece of advice...

sorry but my friends said investing in shares will get u lot of money than in MF`s!!!

thats y i asked..

is it really worth investing in shares .. than in some fixd bank deposit, things like that???

It is true but only when the markets are NOT falling.. It also depends on you investment and time horizon.
 
OP
naveen_reloaded

naveen_reloaded

!! RecuZant By Birth !!
ok ..
where cn i find news/updates regarding shares... ??

any relieable site??

and also i have seen my friend doing daily transaction/buying shares and selling them online..

i just want to know .. how could one be knowing all the value changes .. is there a software regarding this ??

another tihng on normal investment of say 50k in MF and in share...

which will bring me profit???
 

enticer86

Stay Silent!
^^ see you are basically a noob, so pls do not compare with ur frnds... u'd end up losing ur initial inv.. WHy do u hav to start now when the markets are falling.

Yes, ppl have softwares only then they kno values of all shares... they get to know everythin, form volumes to values and all.. and Indicators- whether to buy or sell.

On an initial inv of 50k, you'd earn more in equities, but then theres always the risk factor.. also it depends not only on the choice of ur equities but also on many other factors.
 
OP
naveen_reloaded

naveen_reloaded

!! RecuZant By Birth !!
^^ see you are basically a noob, so pls do not compare with ur frnds... u'd end up losing ur initial inv.. WHy do u hav to start now when the markets are falling.

Yes, ppl have softwares only then they kno values of all shares... they get to know everythin, form volumes to values and all.. and Indicators- whether to buy or sell.

On an initial inv of 50k, you'd earn more in equities, but then theres always the risk factor.. also it depends not only on the choice of ur equities but also on many other factors.


no i havent started investing anything except in MF .. reliance natural resource

i amstill learning...

my simple question...

we recently heard that shares went down.. one simple thing .. we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times..( read the time the sensex went down below 15k)

why is it so .. couldnttehy just have had the shares with them.. anyhow the market will boom again..i simply dont get it >?>?
 

esumitkumar

Call me Sumit
we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times.
thats y im repeatedly saying read investopedia....as ur q is concerned..its the sentiment of the traders ..basically thr r three types of traders ...day trader,swing trader and long term trader..

DT buys n sells within same day
swing trader 2-5 days
long term - depends on his gain/loss appetite ...

why mkt falls --> only due to sentiment of day traders ...take 9/11 situation..that happened..american economy falls ..impacts all world as export/import frm US is much so mkts crash so everyone is trying to sell his shares ..so shares of that company r excess in mkt..so its price falls .........and BSE,NSE is determined by prices of top 30 companies shares prices ..thats y

so naveen learn n grasp easily n slowly..me too learning..dont know much abt futures and options :(
 

viruss

Atarangi Keeda
ok ..
where cn i find news/updates regarding shares... ??

any relieable site??

and also i have seen my friend doing daily transaction/buying shares and selling them online..

i just want to know .. how could one be knowing all the value changes .. is there a software regarding this ??

another tihng on normal investment of say 50k in MF and in share...

which will bring me profit???

Naveen ,
the value of your share/MF can be found on various sites. for e.x rediff,moneycontrol,yahoo etc.
value of rMF is called NAV (Net Asset Value)
MF are roughly divided into two parts. Close Ended n Open ended

Now,
Mutual Funds:- These are nothing but Qualified Investors who manages your money using their experience and pre-conceived notions. The main person who handles all these assets they have collected from the public is called as Manager of the Scheme. And he is responsible for the performance of the Fund Scheme. So Managers work profile and his past experience is all the matters..

These people are supposed to be collecting money from people and then investing that money into Equity or Debt or Futures and Options etc etc.......


Asset Management Companies (AMC):-
The different companies concerned with the work of collecting money from the public and then managing it are called as Asset Management Companies..
Eg. ICICI, Reliance, HDFC etc etc

While collecting money from the Public, every Asset Management Company comes with a scheme in the market which focuses on some themes like Diversified/sector oriented/infrastructure..

Eg.
Fund Name Type
Reliance Diversified Fund Thematic/Sector Oriented Fund
ICICI Prud Infra Thematic/Sector Oriented Fund
Reliance Growth Diversified Fund
And the name of that theme after the name of that AMC is the Name of That Scheme which gives you primary information about the motto of that scheme.



Now coming back on the subject of Analysis, the important things to be taken into consideration are:-


Fundamental Analysis:

1) Manager:- Name, Work Profile, Experience, Past Record, Risk Profile etc etc.
2) AMC Name:- Which would give you some idea about the working strategy of the Fund Scheme. Means is it reliable? Is it Aggressive? Risk Profile?
3) Scheme:- The name of the scheme indicates most of the things you use in the analysis. Means is it a Thematic/ sector oriented fund or a diversified one. What is its primary focus.
4) Past Record:- If the scheme is older than 2 years then it is quite easy to analyze the scheme as we get its past record to do our Fundamental cum Technical Analysis.
5) Theme/Focus:- This is so much important one while analyzing the mutual fund. Cause if it is a Diversified Fund then it doesn’t matter much. But if it is a sector oriented fund then in which sector you are investing? Does that sector would yield in the future? And if yes then for how far it can continue giving you good returns?
6) Company Holding:- Which companies this fund is holding? Do those companies are reliable? Are those companies aggressive? Are those companies can continue yielding in the long term? How much percentage of the total assets this Mutual Fund has invested in top 5 holdings of the scheme? As much less it is it would lower your risk profile in the time of Market crash….Mutual Funds don’t switch companies in the short term or frequently. And though they have to, they try to be efficient for the next time. So company holdings can give you fair data for the sake of analysis.
7) Allocation:- Means hows the allocation of the funds has been carried out…How much of the funds has been allocated to the top five funds, top ten funds and likewise you can come to know about the risk involved…
 
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manistar

Broken In
there are real ups and downs in market. but it doesnt shows v cant earn from it... v can earn from shares if v open our eyes little bit wider.. and as u said shud be curius to learn things... thats wat i said dont come in to earn... first learn the fundas.. i asked the folks to read the magazines jus to gain those fundas... and its very first staep.. this is my exp.. i watched the market for two years and only then made my first investment.. my choice is small caps.. i m investing thru my dad demat and trading acc... and got some 50k thru it in one yr... i accept i dont know much as rohan.. very eager to learn...
i cannot accept that one cannot learn from mistakes here... it has risk.. but i remb the lines

ships are safe at harbour but they arent made for that....
 

viruss

Atarangi Keeda
Lessons To Be Learned Before Entering Markets....

What is Investment?
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.

Why should one invest?
One needs to invest to:
1) earn return on your idle resources
2) generate a specified sum of money for a specific goal in life
3) make a provision for an uncertain future


What are various options available for investment?
One may invest in:
1)Physical assets like real estate, gold/jewellery, commodities etc. and/or
2)Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc.or
securities market related instruments like shares, bonds,debentures etc.



What are various Short-term financial options available for investment?
1)Savings Bank Account
2)Money Market or Liquid Funds
3)Fixed Deposits with Banks


What are various Long-term financial options available for investment?
1)Post Office Savings
2)Public Provident Fund
3)Company Fixed Deposits
4)Bonds
5)Mutual Funds
 
OP
naveen_reloaded

naveen_reloaded

!! RecuZant By Birth !!
ok here is the thing frfom wht virus told..

u can invest in long term and short term... wht are the benefit ??? between these two??

and wht is liquidity???

and another thing regarding MF...
dos they constanlty change the company holding or is it like fixed one ?????
once invested .. no more changes....
 

viruss

Atarangi Keeda
What is an ‘Equity’/Share?
Total equity capital of a company is divided into equal units of small denominations, each called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20,00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.What are the different kinds of issue of the shares:
Primarily, issues can be classified as a Public, Rights or Preferential issues(also known as private placements). While public and rights issues involve a detailed procedure, private placements or preferential issues are relatively simpler.


The classification of issues is illustrated below:


1)Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities.

2)A follow on public offering (Further Issue) is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document.

3)Rights Issue is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders.


4)A Preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.



Lessons to be Learned before Entering Markets:
There are some rules i made up,from my Good And Bad Experiences:
1) You must get early mover advantage in each game.
2) You have to see towards risk involved as per your risk profile.
3) You must know wen you have to get out of the market.
4) Deal always on the basis of price sensitive fundamental and technical analysis
5) Follow the tips but not blindly(find out which are rumors)
6) Secret of rich people is the same as secret of comedy,which is TIMING.
7) OVERCOME UR GREEDS AND FEARS
8) Don't get emotional while trading.(which my friend MACKINZE taught me).
9) The most imp one...The difference between making money n creating wealth....and what would b your preference.These are the gr88est rules as I experienced while enjoying my successes and regretting my failures.You can have different experiences too.


While implementing these rules u must know basic things about the market:
1)The Factors Determining The Price of the share:
1)company's futuristic vision(their projects,acquisitions etc etc).
2)Company's structure..means management structure.means do they look trustworthy.
3)News information on the companies site
4)The futuristic requirements of the products the company is selling (if you are a long term investor)
5)Environmental conditions,Foreign Policy and a lot of changing things as long as commodity markets are concerned.


2)Which are the factors that influence the price of a stock?
Broadly there are two factors:
1) stock specific and
2) market specific.

The stock-specific factor is related to people’s expectations about the company,its future earnings capacity, financial health and management, level of technology and marketing skills.

The market specific factor is influenced by the investor’s sentiment towards the stock market as a whole. This factor depends on the environment rather than the performance of any particular company. Events favorable to an economy, political or regulatory environment like high economic growth,friendly budget, stable government etc. can fuel euphoria in the investors,resulting in a boom in the market. On the other hand, unfavorable events like war, economic crisis, communal riots, minority government etc. depress the market irrespective of certain companies performing well. However, the effect of market-specific factor is generally short-term. Despite ups and downs, price of a stock in the long run gets stabilized based on the stock specific factors. Therefore, a prudent advice to all investors is to analyze and invest and not speculate in shares.


3)Supply Demand Law:
This is the basic concept of the whole Share Market World which determines the Value of the Share...
In economics, supply and demand describe market relations between prospective sellers and buyers of a good.The law of supply states that quantity supplied is related to price. It is often depicted as directly proportional to price: the higher the price of the product, the more the producer will supply...The law of demand is normally depicted as an inverse relation of quantity demanded and price: the higher the price of the product, the less the consumer will demand....Thus,from the LAWs mentioned above we can easily determine the price of the share or at least we can predict about the price of the share of the companies considering all the factors determining the price of the share mentioned above...
 

manistar

Broken In
hey this is the right time to invest in good stocks which are affordable now... if u can wait for one yr for good returns... u should not buy wen the stock market is in its peak... but dont put in all the 50k.. jus buy in installments... and reliance power is really good share if u can wait till 2010 for returns...

if u want to read some books in tamil about shares.. i ll prefer u alla alla panam I & II.. its for noobs
 
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enticer86

Stay Silent!
my simple question...

we recently heard that shares went down.. one simple thing .. we all know that india will develop and keep developing .. ifthats the case then why does share holders sell them abruptly @ those times..( read the time the sensex went down below 15k)

why is it so .. couldnttehy just have had the shares with them.. anyhow the market will boom again..i simply dont get it >?>?


My simple ques.:
Whats ur age?
 

sourav123

Thinking Different
I have one question for those who know the market pretty well. Can anybody explain me what are derivatives/futures/options and how are these different from normal shares or mutual funds?
 
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