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Stock market is unpredictable & risky, one day you are on a high and on the other you are on a low. It is
very confusing for any novice to get quick knowledge of how to get through all this which causes debts
for many people who wish to invest in the stock market. So how do we go about it? What do we do to
be stable and book our share of profit? Well, let’s review this.
The stock market has always shown better returns in comparison to fixed deposits over period of years,
this has been seen in the history of over two decades that the person who has stayed back to have a
close check on the way a stock rises and falls has earned good returns and the same continues for 2019.
Over the last 20 years we have observed that about 30% of the period’s market returns were negative,
30% of the years were moderate and 40% were strong years. We cannot judge as to which were the
strong, moderate and weak years but what we could observe is that the best practice is to stay
invested even during the weak times to book profits.
Here’s what we have observed and suggest
1. Equity mutual funds have shown good results for long term investments and proven
themselves to be good investment option globally.
2. Look out for funds that have been around for more than 5 years, those which have a
reasonable scale and those which have had a consistent track record.
3. Being patient while investing without hasting about the returns is a key to be a long, good
player in the market. What you can do is sum up certain a mix of funds together to invest and
give in some time to observe it’s performance to gain the wanted returns.
4. Mutual funds work great for long term investments, look out for funds which have been in
the market for quite a while, let’s say a tenure of about 10 years and opt in for the once with
consistent performance. Moreover, there are companies that provide their investors a
benefit of Free insurance term cover for investors between 18-55 years, do not miss your
freebie there!
5. While paying SIP’s remember 2 things, do not stop when the funds are facing a down and do
put in your SIP with a goal it helps you keep going for the ultimate goal having greater
control over your financial planning.
6. Focus on short term debt funds as they have shown good results in the past and also you
could go ahead and invest in name of senior citizen as the return rates on investment in
banks is more for them which gives you easy high earnings.
7. Too much of anything is not good and same goes for tracking SIP’s. DO NOT track SIP’s too
much. Excessive tracking might tempt you to take some action which is a trigger to make
losses.


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