India Broadband Forum

xwhyz

With the booming stock market, it has reached a unreachable peak and there is also a fear of markets falling soon, if the FIIs withdraw money from the indian stock markets, I am hesitant to invest in stocks at this moment. Mutual funds are far safer but less return. Real estates are in unthinkable heights to not even thinking about investing there. Only option left is band deposits, which is far safer but returns are less! Which one can some one suggest at the moment. I am not talking huge amounts but considerably big amt.

Admin

This is a good time to invest in equities and your fear of FII's pulling their money out is real but even if they do pull out they will come back again as any big investor cannot ignore the potential of Indian stock market. I am a resident of UK and I dont have a single penney invested in UK stocks.. India is the hottest destination as far as my opinion is concerned.
Dont worry about the sensex dipping a few hundred points like it did yesterday as it will bounce back no matter what, its just those worried type investors and bears who try to book profits which is part of the game any way.

If you are looking to invest now I would say pick a few undervalued stocks in the banking sector for instance Bank of Baroda ( I am not invested in it) or even HDFC bank which has done extremely well in the past few years.
IT stocks are not doing very well these days given the impact of US dollar devaluation against the Rupee but then companies like TCS are still a good investment as they are now concentrating more on European markets.
TCS is still a buy buy for me and I am heavily invested in this stock. I also have some huge investments in the pharma sector which I think will do pretty well in the long run but you have to be wise in picking the stocks though.

Just keep in touch with whats going on and try investing in fundamentally strong companies and don't listen to rumors spread by stock brokers.

just4kix

The fundamental error of judgement most small investers like you and me do is that they do not invest when the bear runs start. Because the market jumped from 17K to 21K very quickly, an ROI of anything less than 50% looks very low to everyone. But people should look to stay invested for at 2 to 3 years before booking profits. My two cents (and this comes from experts, not my own):

a) Invest in fundamentally strong scrips - avoid unknown B2 stocks.
b) Invest in diverse stocks - do not commit to a single sector.
c) Infrastructure stocks should see postive yields in the next year - IT may remain be flat - Banking stocks are dodgy based on the bank, NPA's, etc.
d) Mutual funds may give lower results but investing through MFs is a better idea because then you leave the dynamics of markets to the experts - you and I may cannot monitor stocks daily.
e) SIP is even better because you can invest low but remain committed for a longer period. Also the bear and bull runs will average out each other.
f) When investing in MFs do not worry about NAV and Number of Units. Look at the past performance (although this is not an indicator of future) and look at your growth in absolute rupee amounts. Avoid theme base NFOs (new fund offers) as they do not have any track record.

__________________