How do investors deal with Coronavirus?

How do investors deal with coronavirus?

The Coronavirus or Covid-19 has brought life to a standstill to almost every part of the world. The virus which originated from China’s Hubei province has claimed more than 50,000 lives so far with over 1000000 cases globally. With cases increasing in India over the past few days, we can expect this number to run into thousands as more people get tested.

Businesses in various industries like pharmaceuticals, automobile, aviation, tourism, restaurants, multiplexes etc will most certainly bear the brunt in a pandemic situation as such. Businesses with supply chain exposures outside India will encounter a lot of problems in running operations.

As there are brakes been applied now to the economic engine, wondering how Earnings will pan out in the next quarter? Well they are going to look abysmal. Even the companies that are market leaders with well-run managements are likely to show a significant drop in earnings. Things should stabilize in Q4, but what should common investors like you really do?

A look at the chart shows, from 1990 to 2020 the Nifty has seen 10 corrections of over 20%, that is only one every three years. All previous corrections have provided good buying opportunities. However, this time around, investors are concerned that this could be a prolonged economic slowdown across the world. We are already down by 30% from the high of January 14. There are several uncertainties revolving around the current situation. How effective will the 21 Day lock down be? Will there be a vaccine for the virus?


A walk down memory lane

Past data suggests that the following an outbreak, Indian markets have bounced back sharply. So, one thing clearly stands out

‘Past epidemics are short term setbacks and their impact fades over a period’

But what do I do about my portfolio? Should i buy, hold or sell?

Investors are confused and probably most of your portfolios are in red. From family and relatives to neighbors and friends, from news to social media, there are tons of people offering you advice.

The only solution here is to sit back and think with a sane mind.

No one has any clue about what will happen in the short and long term. The most sensible advice here would be to start new. Take a paper and pen, jot down all the stocks in your portfolio. Don’t consider cost price, current market price, amount of profit or loss.

Ask yourself these questions about the stocks you own, ‘Do I know the business model, products/services of the company, valuations, management quality, competitive advantage?’

If you have answers to all these questions and after the current mayhem in the markets, nothing has changed about the stocks you own, HOLD THEM and buy on dips.

If you don’t have answers to those questions. SELL THEM.

Which stocks do I buy during the current crisis?

Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family, is credited with saying that “the time to buy is when there’s blood in the streets.”

If you are planning to enter the markets after the correction, I’d say it is a smart move. But what would you buy?

Would you buy stocks that led the rally to the previous high of Jan 14th? They surely might have done well, and a few months of shutdown wouldn’t change that.

“But wait, do you know what happened to DLF and Unitech, back in 2008?

Would you buy stocks that have fallen the least during the ongoing carnage? Maybe the markets feel that these businesses will do well and would be able to sustain this crisis.

Would you buy market leaders, delivering a consistent ROI over the long term and paying out dividends to their shareholders?

Each of these above statements make complete sense. At the end of the day it all depends on what you feel is right.

Here’s a list of stocks. Some of them are the strongest performers based on 1-year returns, some are solid business which seem to be good buys at current levels but have corrected due to the ongoing pandemic.

Disclaimer: These are not stock recommendations, but a base for all investors to begin their research. Apply all the questions above and check which stock fits well in your portfolio.

Do I need to allocate more debt to my portfolio?

As mentioned before, we are at a juncture where things can go in any direction. In the worst situation, markets may even see a further downside. Hence having the right balance of equity and debt in one’s portfolio is of utmost importance. If you are not sure, choose 50:50.

Another suggestion would be to have an emergency fund in place, keeping in mind the lockdown imposed.

I understand RBI’s announcement of a three-month moratorium of EMI’s would tempt a lot of you to defer loan payments. But, if you can make these payments, don’t pile debt.

Closing Thoughts:

Electric parts, chemicals, textiles, auto parts, almost everything is imported from China. This has made many countries like US, Germany, UK to become extremely import dependent on China for cheap imports.

The impact of coronavirus on the globe has woken up everyone. The ‘geopolitical risk’ and danger of being too dependent on one single country has finally been exposed to the world.

Once we get over the crisis, companies would look out for alternatives rather than being over -reliant on one nation.

I strongly believe India will stand to benefit from this.

China’s exports in 2019 were around US$ 2.4 trillion. In comparison, India’s exports accounts for just around 12% of that.

Even if 10% of MNCs currently dependent only on China, see India as a viable alternative, our exports can almost double. Imagine the amount of companies that will benefit, employment generation, investors creating wealth.

I was glad to read a recent article, where 200 US companies who were supposedly seeking to move their Manufacturing base from China to India.

Have a Look at this chart.

 From being highly isolated from the world, India opened its doors to the rest of the world. Exports started becoming a huge contributor to India’s GDP. From contributing around 7% in 1991, exports now make close to 22% of the GDP.

I believe India will fight this out and emerge victorious.

“It looks bad today. It might look bad tomorrow. But hang in there. We’ll get through this” – Morgan Housel

8 of the Most Common Investment Mistakes in Mutual funds

8 of the most common investment mistakes in mutual funds
Mutual funds have been in the news ever since the Mutual funds Sahi hai advertisement has been all over the new. People have been shifting their funds from the traditional fixed deposit to mutual funds.  If you don’t have good knowledge of the markets or don’t have too much time to follow the markets, you can invest in mutual funds. Best part of mutual funds? They are managed by professionals and you can start with an amount as low as Rs 500 Although there are so many advantages of investing in Mutual funds, novice investors still tend to make a lot of mistakes. Let’s discuss 8 Common mistakes which most investors make.

1. No financial goal: Investing without having a goal is like shooting in the dark. Most investors don’t know for what purpose they are investing. You should clearly define your financial goal before investing. If it is a long-term goal of retirement, investing in SIP would make sense and if it is a short-term goal of enjoying a foreign trip in Europe, debt funds would do a good job. 

2. Reacting to short term fluctuations:  We as human beings tend to react to every single news that we hear. Avoid listening to analysts on business channels and taking tips from various sources. If you don’t avoid all this earning return would become tough and you would just be buying and selling continuously instead of generating long term wealth. 

3. Not increasing SIP amounts: SIP is a great way to begin your investing journey. However, a mistake that most investors make is that they don’t increase the SIP amount over a period. If your income is increasing, make sure it reflects in your SIP as well

4. Investing in too many schemes: Investing in too many schemes becomes very difficult to monitor. Investing in a mix of 5-6 schemes should serve your purpose. Beyond a certain point investing in too many schemes does not add any value. The more schemes you add the more you need to track them in terms of performance.

5. Staying away from a mutual fund because of high NAV: Many new investors often make the mistake of comparing mutual funds based on their NAV. Higher or lower NAV is irrelevant while determining the performance of a fund. Mutual fund performance is dependent on the portfolio of securities and fund manager’s performance. For example, two funds having a NAV of Rs 10 and Rs 100 that hold the same securities will deliver the same returns. 

6. Not reviewing your portfolio:  Among the investors who invest in the market regularly, only a few them track their investments periodically. If you review the performance of your portfolio timely, it would keep you aligned with your financial goals. Lack of periodic evaluation of funds results in keeping your portfolio filled with junk investments which keep pulling your portfolio returns down.

7. Deciding based on past performance: Past performance is not an indicator of future performance. If any agent tells you that a mutual fund has given 40-50% returns last year and suggests you invest in the same, then it is a red flag and you need to be aware. Nothing wrong in checking past performance of mutual funds, but that should not be done in isolation. Check fund manager’s objectives, AMC’s track record and taxation. 

8. Dilemma of dividend funds: Mutual funds come with two option – growth and dividend option. Unlike in stock dividends where the company pays a part of their profits, which becomes an additional income for you. In mutual funds there is no additional income as such, you are paid from the growth in your investments itself, so it becomes a regular income for you and not an additional income. Many investors believe that they receive an additional income similar to stock markets, however that is not true. After payment of dividend amount, the amount gets reduced from the NAV. So, if your NAV is 100 Rs and dividend paid is 10 Rs, post divided payment it will become 90 RS. 

5 Must Know Websites for Indian Stock Market Investors

5 must know websites for Indian stock market investors

There are tons and tons of information when it comes to stock market on the internet, but as a beginner or an active investor which investing websites should you use?

Luckily, for Indian stock investors there are a few sites mentioned below which will help you to keep yourself updated about all the happenings in the stock market. 

Following are the 5 websites for every Indian investor:


Moneycontrol is the most used website by Indian investors. Almost every investor in India would be using the Moneycontrol app on their phone. It will give you all the information about the markets, whether it is the latest news, charts, live stock prices, mutual funds, commodities, currencies etc

You can read companies’ balance sheet, cash flow statement etc and read technical charts. You can make your own virtual portfolio and track shares by creating your own MarketWatch. 

They also provide a forum where investors have discussions about the latest happenings in stock market or any stocks. (Please make sure you don’t get influenced by any of the discussions there)


Screener is a website for reading the financial statements and financial reports of the company. Most experienced investors use this website. 

You can find a lot of information of the company you want to analyse on this website. You can find the general information like balance sheet, profit and loss statement, cash flow statement, financial ratios, peer comparison, annual and quarterly results. In addition to it, you can also download the data from this website in excel form. Besides, you can add stocks to your watch list to get notifications in your mail if there is any corporate action in the stocks.

Screener simplifies all the financial information and presents it in a very simple way to understand.


Best website to stay updated about market news. Similar to money control, the ET market also have their app from where you can learn about the stock markets and get daily updates directly on your mobile phone.


Trendlyne is a stock market website which helps you in analysing stocks. It is an analytic based stock market platform for retail investors. Trendlyne also has a section to update you on news in any sector. There are various parameters by which you can analyse stocks on trendlyne.


Markets Mojo uses an algorithm to analyze stocks. Market Mojo will simply tell you if the stock is attractive, expensive or risky based on various parameters. Markets Mojo has its three dot parameters – quality, valuation and financial trend.

Market Mojo also has a ‘portfolio analyzer’ tool which tells if your portfolio is too concentrated towards one sector or compromises of high beta stocks. 


There is another website called INVESTOPEDIA, where investors can learn about various financial market jargons.

What are the Common Myths about investing in Mutual funds?

What are the common myths about investing in mutual funds?

One of the biggest hurdles in the journey of Investing is getting over the myths that have no foundation. Mutual funds have proven to be a great instrument for long term wealth creation, however, there are many myths surrounding this instrument. In this article we bust some of the common Myths of Mutual funds.

#MYTH 1 – A Mutual fund with low NAV is better than a mutual fund with high NAV

We as human beings are always grown up assuming that something at a lower price is at a bargain and worthy buying, however this does not hold true in mutual funds. NAV is the reflection of the current market value of the fund. An already existing fund will have a higher NAV as compared to a new fund as the fund is in existence for a longer period and as it has performed well the NAV has increased.
A new fund will generally have a NAV of around 10 Rs.

#Myth 2 – Mutual funds with good performance in the past are ideal investments:

Many people are under the impression that if a fund has given good returns in the past, they are likely to do so in the future. You need to understand that in investing; past performance is not an indicator of future performance, if that was true, we all would be investing in mutual funds and be rich.

#Myth 3 – NFO gives good returns:

NFO or new fund offer, as you know is the launch of a new fund. NFO’s are risky to investors as there are is no track record of the fund. An NFO should generally be avoided unless it comes out with a unique idea or different strategy for investors.

#Myth 4 – Dividends declared by Mutual fund companies are not additional income:

Many investors get confused with this and are easily fooled by mutual fund agents. Dividend in stock market and mutual funds are different concepts. In stock market, the company declares a dividend from the profit they earn, and you get an additional income. However, in mutual funds, dividend option does not mean you earn any additional return, it simply means withdrawing a part of your money. 

For example, you invest 10 Lakh Rs in mutual funds and it becomes 12 lakhs in a years’ time, you will be given a dividend of 1,00,000 Rs and your NAV will be reduced. You are not earning any additional income; it is similar to withdrawing part of your accumulated profit. 

#Myth 5 – Need a huge sum to invest:

Despite the growing amount of awareness and popularity among investors about mutual funds, many investors still are under the impression that they need a huge sum of money to invest in mutual funds. On the contrary, you can start your investment in mutual funds with a sum as low as Rs 500 and increase it according to your requirements.

#Myth 6 – Mutual funds are for experts:

Mutual funds are for the common man but managed by experts. It’s similar to driving a car, if you can know how to drive you can travel by yourself (invest in stocks directly) but if you don’t know how to drive a car, you take help of a professional driver (Invest in mutual funds)

#Myth 7 – All the money from ELSS can be withdrawn after 3 years if one is doing SIP:

One of the biggest myths of investors is that if they are doing SIP in ELSS (tax saving mutual funds) then they can withdraw the entire amount after 3 years. However, that is not true. Each SIP you make in ELSS is locked for a period of 36 months.

#Myth 8 – SIP can only be done on a monthly basis:

SIP can be done on a quarterly or weekly basis as well. Most of us prefer the monthly SIP as we get our income on a monthly basis, however if you prefer a weekly or quarterly SIP, even that is possible. However, it depends on different fund houses if they have that option, most of them do have it.


Many people discontinue their investments during a bear market or sell them. Well in a bear market, you should never discontinue your investments but rather invest more.

What are the risks involved in Mutual funds?

What are the risks involved in mutual funds?

Mutual funds have turned out to be a great investment option over the past few years. However, there are some investors who are still not able to shift from the traditional investments like fixed deposits, reason being the risks associated to these investments.

Mutual funds are subject to market risk – please read the scheme related documents carefully

1.Market risk: Market risk is the risk related to those factors which may result in losses for investors due to a poor performance of the stock market. Your investments were worth 15 lakhs 6 months ago, then they declined to 12 lakhs and now they are up 20 lakhs.  The stock markets can make your heartbeat faster; this is what market risk is all about.  As a layman how do you mitigate this risk? Well before investing in equity related mutual funds look at the price to earnings ratio (P/E Ratio), if this ratio is high don’t invest in equities and shift to a safer avenue

2. Credit Risk:  Credit risk is related to debt mutual funds which mean that the issuer of the scheme is unable to make payment of principal and interest. Let’s say you lend money to your friend and he is unable to pay you the money back, you are exposed to credit risk. Debt instruments are always given a rating by rating agencies like CRISIL such as (AAA, AA+, AA) You should always do a detailed study about portfolio characteristics held by the debt mutual fund scheme and you must ensure that the fund manager invests in AAA rated securities. A Lower rated debt scheme (C, C-, D) are more exposed to credit risk. 

3. Interest rate risk:   Interest rates and prices of bond are inversely related. When interest rates go up, price of a bond falls. Similarly, when interest rates decrease, price of a bond hikes up. Debt funds of shorter maturity like liquid funds, short term funds etc are less prone to interest rate risk as compared to debt funds with longer maturity. 

4. Liquidity Risk:  In mutual funds, like ELSS (Equity Linked Saving Scheme) the lock-in period freezes your liquidity which results in liquidity risks.  Liquidity risk normally arises in close ended schemes, where there is less liquidity and you are forced to sell your fund at a discount. Hence it is advisable to invest only in open ended schemes which have a high amount of liquidity.

5. Inflation risk:  The reason most of us start investing is to earn returns and beat inflation. But at times our investments don’t fetch us enough returns to beat inflation. This is especially true in money market funds, where the returns are low and can easily be beaten by inflation.

Direct vs Regular Mutual fund – Which one is better?

Direct vs Regular mutual fund – which one is better?

There are two types of plans in mutual funds – direct and regular

What is Direct Plan in Mutual funds?

A Direct Plan is when you buy directly from the Mutual Fund Company. In a direct plan there is no distributor/broker involved so investors are free from distribution or commission fees. Because of this the expense ratio is low in direct plans. 

What is Regular Plan in Mutual Funds?

A Regular Plan is when you buy through an advisor, broker or distributor (Intermediary). As there is an intermediary involved, they get paid a commission which makes regular plans much more expensive than direct plans.


Prior to 2013, Mutual funds were bought and sold only through a distributor/agent since it was thought that the general public lacked awareness. Such funds carried an extra charge as the mutual fund company had to pay a commission to the distributor.

In 2013, SEBI passed a new regulation which made the mutual fund companies to sell the funds directly to the investors, so that they could invest without being charged a commission.

Difference between Direct Plan and Regular Plan:

1)Expense RatioA direct plan has no commission to be paid hence the expense ratio is lower A regular plan has a higher expense ratio as it requires a commission to be paid to the distributor
2)ReturnsThe returns in direct plans are usually high as there is no third-party involvementThe returns in regular plans are lower as there is distributor/agent who will be charging a commission
3)Market ResearchIn a direct plan, research is done by the investor himselfIn a regular plan, research is done by distributor/agent and he gives you advice regarding your investments
4)NAVNAV of a direct plan is higherNAV of a direct plan is lower
5)Portfolio TrackingAs the investor does the research, portfolio monitoring is done by the investor himself. Distributor/agent does the portfolio tracking on behalf of you. 

So, the question is, which plan is better for you: direct plan or regular plan?

Both plans are the exact same scheme, run by the same fund manager investing in the same stocks and bonds. The difference is that in case of direct mutual funds, there is no broker/distributor commission. Which means, as an investor, you get higher returns from the exact same mutual fund.

You should try sticking to a direct plan, reason being, in regular plans many of the distributors/agents can misguide you in buying the wrong investments, so they get paid a higher commission. A look at the consumer forum will tell you how many people complain after being cheated. However not all agents are fraudulent, but it does not change the fact that their compensation is based on your investment amount.

Investing in a direct plan will demand you to put in some required efforts, but in the long run it will benefit you

However, direct plan will give you an additional return of 0.5 – 1%, which makes a huge difference over a period of 15-20 years.

7 steps to select the right Mutual Fund

7 steps to select the right mutual fund

Selecting the right Mutual fund is like selecting the right partner; any wrong decision can put you in a spot of bother.   As a new investor you may find it even tougher as there are so many funds to invest in. 

When we say we need to select the best mutual fund for us, it does not mean the one with the best returns, but the one which suits your goals and the amount of risk you can take. Many investors make the mistake of choosing a mutual fund based on past performance, if a mutual fund has been the best performing one in the last year, it does not mean it will continue to do the same. Some investors only look at the ratings given by various research agencies. This can be one parameter to be looked at, but there are many other parameters that one should look into before investing in a mutual fund.

1. Investment Objective:  Firstly, you need to understand your purpose behind investing. You may be investing for a long term or short-term goal or for a specific goal like child’s marriage or education, foreign trip with family, purchase of a new car or house. Investing in mutual funds to get better returns then saving account and fixed deposit can also be a goal. Read the scheme related documents carefully and understand the investment objective of the mutual fund scheme and check if it is in line with your objective

2. Risk Tolerance: Investment decisions are taken based on risk appetite. A person in their mid-twenties would be a high-risk taker and invest in equities whereas a person who is likely to retire soon would prefer safer investments like debt funds. To make investors aware of their risk profile, SEBI in 2015, made it mandatory for all mutual funds to display a RISKOMETER, showing five levels of risk.

3. Performance comparison: Mutual fund returns should be compared to a benchmark’s performance and other schemes in the same category which will give a better understanding of the fund’s performance. For eg: If you have invested in a large cap equity fund then your basis of comparison will be other large cap funds in the same category and not mid cap or small cap funds.

4. Consistent returns: Mutual funds giving consistent returns over a period of 3-5 years should be considered as investments. Don’t look at the investment performance of just 1 year, there are many schemes which have good ratings and good returns in 1 year but poor returns over a period of 4-5 years.

5. Expense ratio: Expense ratio is the fee charged by an AMC for maintaining all the expenses for running the mutual fund which include the administration, management, promotion and distribution of a mutual fund. According to SEBI, mutual funds can charge 2.25% of the total funds’ assets as expense ratio. However, most equity mutual funds charge around 1.5% which is considered as good by industry experts. Higher expense ratio will reduce your profits and increase your losses.

6. Fund manager tenure and experience: Fund manager is the one who takes most decisions while managing the fund. You should know who the fund manager is and is past track record. Keep yourself updated with other funds that he is managing. However, if the fund manager has recently been changed, don’t panic, track his performance on a quarterly basis. If you find out that the decisions taken by fund manager effects the fund considerably and does not suit your risk appetite, then you can take a decision to exit.

7. Assets Under Management: You can compare the fund size with that of its peers within the same category. Choose the one that is neither too big nor too small. Too big a fund makes it difficult for the fund manager to effectively generate returns and too small a fund shows that the fund is not that popular.

How can Beginners choose a stock broker?

How can beginners choose a stock broker?

Choosing a stockbroker is the first step to start your journey in stock markets. Without a stockbroker, there is no way you can invest/trade in the stock market Since the stock exchange alone cannot provide services to millions of investors at the same time, stock brokers eases trading for clients.

The stockbroker act as a bridge between client and stock market. Their job is to help the investor to buy and sell, shares for which they earn commission.

There are basically two kinds of brokers:

  • Full-service broker:

Full-service brokers provide you with research, trading and advisory facility. They charge a fix percentage on every trade that is executed.

They have their own research team who analyse and research on stocks on a daily basis. The brokerage fee is comparatively high compared to other brokers and therefore you should be careful before choosing your broker.

If you are new to investing in stock markets and need advisory services, you should opt for a full-service broker.


  • Discount broker: 

Discount brokers only provide you with trading facilities. They do not provide you with any advisory services and charge a flat fee per transaction. If you are someone who is experienced or can make your own investment decisions in stock markets, you can opt for a discount broker.


Here are a few things you need to look into before opening an account with a broker:

1. Check broker charges: Before choosing any broker, check and compare charges of various brokers, see how much these brokers charge for both buying and selling a stock. You need to decide if you want to choose a full-service broker or discount broker, as the charges and services vary. 

2. Customer service: When you opt for any broking firm look ensure that these services are available: 
  • Trading terminal is easy to use and demo videos of using them are on YouTube
  • Customer friendly app
  • Provide information about stocks on regular basis. (If you are a beginner)
  • Easy transfer of funds from your bank account to trading account
Beginners should choose a full-service broker as they can guide you and provide proper customer service and listen to all your queries. You can try calling the customer help line number for any help. Many investors choose discount broker to save brokerage. On the other hand, there are several people who select full-service broker to save their time and energy while doing research. Overall, it totally depends on your time, knowledge and preference of choosing a broker.

3. Reviews from other customers:    Check the background of the broker and read reviews and complaints online from other customers. Read the reviews of the mobile platform and check the mobile ratings on the app store.

4. Choose a broker who has many branches:     Discount brokers have very few branches as compared to full-service brokers. If you opt for a discount broker find a branch in your locality where you can easily go and meet the customer care to clear your doubts.

5. Look for extras/add-ons   Some brokers also offer some extras like no annual maintenance charges for first year or free education tools are offered to you. Make sure to take advantage of such add on’s

16 Do’s and Don’ts of Investing for Beginners

16 do’s and don’ts of investing for beginners

Here are a list of few Do’s and Don’ts that an investor should keep in mind before starting their investment journey. 

DO’s of Investing: 

-Start early:

Start investing at an early age as starting early helps in generating long term wealth and you also benefit from the power of compounding. If you begin early you can also get enough time to recover your losses.

-Tons of research:

Before investing your hard-earned money in stocks, mutual funds or other market investments, be sure it’s worth your money and do all the required research. Make sure you track the markets on a regular basis. You need to understand the company and the business that you are investing in.

-Diversify your investments:

“Don’t put all your eggs in one basket “this proverb is rightly applicable here in investment terms. It means that don’t put your money in any one type of investment like only stocks or mutual fund, diversify them and put your money in different asset classes. Diversify your portfolio so that the risk is evenly distributed. No returns are guaranteed so invest only your surplus funds.

-Have a goal:

If you have a goal in mind and invest money to achieve that goal, there are higher chances for you to make money and achieve that goal as you have a clear direction. You can have a goal of going for a foreign tour or buying a car or even studying abroad.

-Invest for Long-term:

If you are serious about building wealth, you should invest for the long term. Investing in long term helps you benefit from the power of compounding. So while investing think long term, like 5 or 10 years down the line and not short term.

-Hold the winners and cut the losers:

Sell the stocks in your portfolio which are underperforming since a long time and hold your winners which are making you money. When you cut the losers and hold winners it will help you in your path to financial freedom.

-Averaging out:

It is not possible to time the market with perfection. Instead of finding for perfection you can buy stocks on dips and average out your position.

-Start small:

When you first learn how to drive a car, you don’t directly drive on a highway, first you will drive in your locality, then on the main road and once you get some confidence you can go and drive on the highway. Similarly, when you invest start with small amount and gradually increase that amount as your knowledge and confidence increases.

-Track your investments:

Don’t invest and forget it. Watch your investment on regular basis so that you get an overall idea on which direction your investment is going and make changes as required.

-Have patience:

Have patience while investing in stock market. If you join a gym you won’t get instant results, similarly by investing in stock markets you won’t get instant result, have patience and don’t sell your good stocks.

-Attend seminars and keep reading:

A good investor will always try to upgrade his knowledge and understanding. Keep attending free seminars close to you and read various articles online. There are tons of blogs and articles where you can get good knowledge on investing. A beginner can begin his investing journey by reading books like:


Don’ts of Investing

-Don’t act on tips

The moment you open your trading account you will get a lot of tips for buying and selling. Never invest blindly in stock markets or by tips given from some source. For e.g. if your friend is telling you that a stock is going to give you high returns, don’t go and blindly invest. Do your own research and then if you think it is really going to give you good returns then consider investing.

-Don’t have unrealistic expectations:

Don’t have unrealistic expectations of your investment giving double digit returns in a short span of time. Having unrealistic expectations deviates you from your goals.

-Don’t take unnecessary risk:

Investing all your money in all the risky investment might bring up huge loses. Safeguarding your investment is equally important for getting high returns. Therefore, don’t take unnecessary risk.

-Don’t over trade:

Don’t always buy and sell you stock for short term gains, you might need to pay a lot of brokerage and taxes. Make transactions only when necessary.

-Don’t take emotional decisions:

Stock market has a lot to do with people’s behavior and emotions. Many people lose money because they take their investment decisions based on emotions. If you have invested in a company whose share price is falling and is not showing good signs of profit in the years to come, sell your investment even if it has to be at a loss.