Company Fixed Deposit

If you want return in the range of 8 to 15% (15% return is quite competitive with respect to stock market returns) considering you are risk averse and you do not want to invest in stock market, what are the options available with you? There is an investment option i.e. Company Fixed Deposits which can be good alternative for investors with low risk appetite and high return expectation. Let’s discuss the suitability of this investment option.

Read more: Company Fixed Deposit

How to minimize Stock Market Risk

If you invest in stock market then “Risk” might not sound a weird word to you. As soon as you mention the word stocks in any conversation you will get to hear the same old statement “OH ITS RISKY”. Most of the people know it’s risky, but still like to play with it. What’s exactly wrong with them?Let me tell you there is nothing wrong with them. They take this risk because they know how to convert this risk to reward. So for informed investors risk becomes calculated risk and what you can calculate you can mitigate too.

Read more: How to minimize Stock Market Risk

Capital Gains Tax on Equity

Tax filing season is the busiest period of financial year for earning people as one has to complete tax filing formalities. Situation gets tough if you are earning from diversified sources and your investments spans debt, equity, mutual funds, real estate and commodities which ultimately increase the complexity of tax filing process.Taxes for different asset classes are handled differently by Indian tax laws.

Read more: Capital Gains Tax on Equity

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?

Read more: How to select good stocks

Why to learn Technical Analysis

Continuous uptrending stock market is phenomenon of history. Now stock markets are highly volatile as its movement depends on so many  complex factors. Globalization is adding new dimension to the volatility. One can not rely on buy and hold policy anymore. If you stick to the same old philosophy of buy and hold, volatility and inflation will eat away your returns. A cursory look on your buy and hold portfolio since 2008 will validate above statement. It should not surprise you at all if your portfolio is in red colour.

Read more: Why to learn Technical Analysis

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.

Read more: Important Tools for New Equity Investors

You may also like

disclaimerDisclaimer

Trading and investing involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. No information available on Equityfriend should be construed as investment/trading tip or recommendation or a warranty of profitable results. All risks, losses and costs associated with investing/trading, including total loss of principal, are completely your responsibility.

No one from Equityfriend Team is a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 and the material on this website are provided for information and analysis purpose only. Equityfriend.com is in no way accountable for your use of the website data.