How can an investor become secure in the stock market of india which is prone to irregular fluctuations?

Seeing at the recent downfall from 20K! And roles that the speculators play!
Suggest some remedial measures to minimise the risk while applying funds in this risky venture made especially for the big-hearted people!

9 Replies to “How can an investor become secure in the stock market of india which is prone to irregular fluctuations?”

  1. The stocks everyone will tend to follow the lead in US. Its the bear market right now. Check out China. sorry to say its on the road down in 2009. This is not just economists prediction. Its based on the law of physics. The Fibonacci principle.

  2. Hedge your investments and diversify across different asset classes, both domestic and international. Seek a risk profile that meets your needs.

  3. one should stick to low PE & largecap stocks. Do not invest on tips.

    Also you can not become totally secure in stock market. You will have to take risk of investing but do not expect too much profit in too less time.

    Also diversify your portfolio to atleast 10-15 stocks & any stock should not be more then 20% & any sector should not be more then 33% of your portfoilo.

    Also to minimise risk, choose mutual fund way.

  4. Listening to others without having a look at a few basic fundamentals is the biggest problem which people have faced over the past few months. Please understand a few basics of investing and then re-look at the economy, industry performance and also the company’s performance to judge a stock. If the fundamentals are strong then though the market went down but still the loss you would get would be minimal.

  5. Investing in Large Caps is always a safe bet. They are less prone to risks when compared to the midcaps and small caps. U can see that in the recent fall the midcaps were butchered like anything. It takes a great momentum again, for these stocks to head upwards.

  6. does that market offer options ?
    look into collaring your investment by purchasing at the money puts and selling high out of the money calls that give a decent premium thus offsetting the cost of the puts.
    what you get is protection on the downside and a limit on the upside but these can be rolled over as the market changes either up or down.
    Of course if that market does not have options then all of the above is worthless information.

  7. Investor shall remain investor ! Problem is we book losses earlier than Booking profits . Also we tend to trade ! Invest in Business and not stocks . Once you know the Business makes sense let it be given enough time to show results else invest in Mutual Funds !

Leave a Reply

Your email address will not be published. Required fields are marked *

sixteen − nine =