Can you give me some investing tips?

When D Mart went public, I got interested in investing but I wasn’t able to buy shares in the IPO

I got shares of SBI LIFE, that worked out OK but I don’t understand why the share has done so poorly.

How should I get started? Should I buy shares on listing?

Should I get a broker or a discount broker and trade online?

Should I go back and buy Hdfc Standard Life now?

If not, when?

And how much should I invest?

These are not just 8 questions, these are 800. Such a person needs to do a few things. First of all, he has to stop being so agitated. He needs to meditate for 20 minutes a day at least so that his mind is at rest. Investing will follow. He looks like a person who creates (downloads) one new diet plan every week. Failure is guaranteed.

First, commit to a process. Decide on how you will learn about equities or about mutual funds. Do not clutch at straws watching the media. It feels like he is looking for a way to make a fast buck. Nothing wrong, only thing is he is on the wrong blog. I never endorse this approach to investing. I have made a quick buck, but that was not what I was seeking. I just got it. Slow down. Understand you have to go through a process to hone your investment skills.  This is going to take time.

My advice is not to do anything unless and until you have a clear understanding of each of these investment alternatives – at the very least.  You are going to make mistakes and you can’t beat yourself up when you do. You will learn more from doing than by reading and talking. Do your homework and start small.  But before you go off and start, it’s a good idea to define what investment success looks like to you.

People aged 50 years and wanting to invest Rs 3L in equities (with Rs. 100 L in bank fixed deposits) are really wasting their time investing in equities. Honestly, what difference will it make in their lives? what if this 3L becomes Rs. 7L in 10 years time? they will be 60, have about Rs. 140L in debt instruments, and about 7L in equities. Seriously, this is not enough for their retirement.

If you do not want to learn about equities, do not invest in equities.

But Subra I have lost money in mutual funds in the past. Mutual funds are also subject to market risk and I prefer direct shares.

Good one. This was a woman who thought buying good shares – TCS, LnT, Icici bank, Sbi, – she had invested Rs. 2L which had become 2.4L – and with a cagr of 19% she was thrilled that she had done a good job. However she also had a home loan, ppf, bank fixed deposit,. I suggested that she should break her bank fd and repay the home loan. Her husband wanted the tax break. How much load did they have? Rs. 1 crore. What was his CTC? Rs. 38L. She was a home maker.

Oops. I was just talking to her at a social gathering.

Cannot really say much. The heading says it all. People have a right to s…w their retirement. God bless.





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