How to select good stocks

The simplest route which retail investors follow while choosing stocks is to select it based on recommendation of some analyst on TV or picking it from the stock advisory section of a news paper. This at times sounds bit logical with respect to investors who do not have enough knowledge of stock analysis but what about the investors who react based on tips about some ABC company. They simply don’t know what the company does and what is the credibility of the source of the tip?

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Important Ratios for Mutual Funds

Mutual funds can confound us with their variety and objectives. Indian market offers more than 3000 mutual funds which can fit all hues of risk and reward combination. While the varieties offer more options to choose from, the same varieties can confuse investors if the investors do not know how to understand them. Understanding the proportion of equity, objectives, and your own goal and investment period are very important to make the most of the fund.

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Important Tools for New Equity Investors

So you have bought your first stock (If not then read the article “Buying the first Stock”). It was fun and now you want to build a portfolio. Mind you “the fun ends here”. Buying the first stock was relatively easy but building on a portfolio of stocks which generates consistent return is a different ball game all together. I am saying this because when you bought the first stock the capital invested was not much (10000 now a day is not muchL) and you bought the stock from the most familiar sector. Both these factors contribute towards reduction of risk.

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