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I am 19-year old guy ...and wanted to invest money in share market...how should i start and invest in it????? |
I am 19-year old guy ...and wanted to invest money in share market...how should i start and invest in it????? Congrats on starting so early first, it's really a good thing to start investing when you are young because of the compounding interest. There are a few things you need to know before you start investing your money. You need to get a mutual fund. i used to work for State Farm Insurance and we were licensed in Texas to do investments. You should call your local State Farm office and talk with them. They can give you graphs on what your savings will add up to be in the future and they many different plans available. try http://goldenbullpicks.com read a book about it for starters. investing is like gambling in a way. you can make money or you can lose it just as easily. bonds are a pretty safe place to put your money-especially municipal bonds. but really, hold on to your money til you know a few things about the market. 'investing for dummies' or something like that should give you a quick overview of what the investing world is like. as with anything, though, a little knowledge can be dangerous. i should know, i've lost thousands on the stock market. First of all, never invest with an insurance company. Insurance companies have high-cost mutual funds and high-cost variable annuities. Much better investment firms, with much lower costs are: 1. Six months of living expenses in cash or cash equivalent Get on to any on line trading..icicidirect.com,sharekha, hdfc, or infdiainfoline. Do a lot of studying the market. The on line web sites will also give you tips...now go all out making your monies. It is a little more complicated than that. One advantage you have is that you are young. The second thing to look at is how much risk you are willing to take. If you don't like taking investment risks, then the return on your investment will usually be less than if you took more risk. Other the other hand, you may loose more money when you take bigger risks. Keep in mind that whether you are a risk taker or not, there is always a chance of losing money in the market and in a few worst case senarios, you can even loose all of your investment. That being said, a general rule of thumb is not to invest your money in the stock of one company (single stock). You may have heard the term "diversification", which basically means don't put all of your eggs into one basket. So, putting your money into a mutual fund (a group of stocks) may be the better choice. For example, if you put $100 into one stock and that stock drops 25%, you only have $75 left. If you put your money into a mutual fund with 30 stocks within it and 1 of the 30 stocks drops, you still have 29 stocks that could increase in value and will protect you against the loss. Also, if you haven't started saving for retirment, it may be a good idea to start putting your money into your comany's 401k or an IRA. All of the information I supplied is just a general rule of thumb and I am not recommending you follow this advice without knowing your current financial situation. Okay, I know I gave you a lot of info and I hope it will help you out some. First get all the initial work done. This would include the getting all the clearance from the concerned department. You could visit the local stock exchange and submit all the necessary paper work. You might want to create a "practice" portfolio at http://www.top10traders.com - it's free - each month the site ranks the best performing investors. Its too gud dat u r planning for investments at d age of 19. Don't invest directly in stock market. if possible then go for short term n less costing investment like MF (monthly plans). do homework learn tecjnical analysis |
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