The general perception is that investing in stock markets is very risky. there are two aspects which go into investment in stocks. Firstly choosing the right stocks & secondly purchasing the stocks at the right time. We may choose some tried and tested blue chip stocks or analyse a Company & decide to invest in that business. The most difficult aspect of investing would be to time your purchase. Time and again we have seen that after we purchase a stock there is a decline in markets leading to a fall in share price. One way of negating the risk of timing your purchase is to invest in a staggered manner. Once we decide on the stock to invest in, we can do a SIP in the stock, invest in a systematic monthly installment just like an SIP in mutual funds. Just like there are no short cuts in life , there are no short cuts in investing. The best & safest way to invest is to accumulate it slowly and steadily. Just as the tortoise says- slow but steady wins the race. Lastly stock investments should always be done with a long term perspective and stocks should be bought with the mindset as if you are buying into the business.
Find below a table of monthly systematic investment in some stocks till the end of January 2017. I have selected a few stocks which I like:
Rs.5000 invested every month has grown to…
Amount Invested (Rs.)
Bharat Electronics Ltd
Motherson Sumi Systems Ltd
Sabyasachi Paul has been associated with equity research and advisory on equity markets in India for over 9 years & currently heads the equity research desk of Eastern Financiers Ltd, Kolkata.He also manages a portfolio on the online platform Kristal. Find link to the strategy named ‘The Tortoise’