So many people have asked me this question, in so many conditions, that I really do not know what to say!

I have replied to this in many ways, so let me try one more. The simple answer is NO. However like most human beings you may want a more complex answer, right?

There is no clear trend of how the markets have moved even in the past 4-5 months! Going up and down seems to be the market’s decided behavior. To think you will know when it will go up or stop going down, is being naive or foolish. There is enough historic proof that to earn money you need to spend enough time in the market.

So if you do not need the money for 5-10 years, it should be in the equity market.

If it is money with which you are paying your EMI, it is better left in the savings  bank account!

 

 

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  1. These days one would see experts pouncing on denouncers of equity market. While the market is moving up I see lot of irrational exuberance ever since new FM took over. The current rally looks to me as rave party on sinking yacht.

    While the inflation is still raging (> 10% in Aug’12), RBI is coerced to announce rate cuts and it did. Companies are unable to pay their debt be it local or foreign currency but the stock prices are going up. Most of the current investment is through dubious P-Notes notorious for black money rerouting.

    Unfortunately no one is warning the investors and on the contrary amatuer investors being criticised of early exit from the market.

  2. I agree with Krish. Retail investors should NOT be in the equity market till there is some clarity. Just looking at the way some of the experts make money (or claim to make money) they should not be putting their money in equity. If there are 4 people in the house, the first 4 lakhs should go into PPF and voluntary pf. Surplus above that ONLY should be done as a SIP or whatever. Also they should NEVER go to the equity markets with lumpsum, but do a SIP in good shares like Infosys, LandT, Hdfc bank, etc. to get decent returns. They should avoid counters like Reliance which are not so investor friendly

  3. Subra sir

    One very poor fellow once said “Be greedy when others are fearful & be fearful when others are greedy.

    I found a simple solution. The sensex peak estimate (say 21000+) will carry the MINIMUM SIP invstmt.
    A 5% lower value of sensex (19950) will take SIP*2
    Further 5% lower value will take SIP*3
    & so on.
    Increase the sensex expectations and MINIMUM SIP yoy based on the growth of the economy.

    Dont stop the SIP and also find very efficient in generating returns even in this difficult flat market in 5 years.

  4. Minal, doing SIP in shares against the tenets of subra’s teachings. Better do it in a large cap fund. IDFC nifty fund has 0.25% expense ratio and start SIP, i did it since a year and my returns are 14% annualized !!!! It is that simple.
    Subra guruji, thanks yar, i became an advisor !!!!

    rgds
    hari

  5. Interesting Comments

    subra….

    All of them are still talking about timing the market rather than the time in the market :). They did not get the message from the post.

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