The investments thread
- Thread starter avi
- Start date
I myself got into share market in october last year. I must say with some dedication and tracking, one can get far more returns in share market compared to FD. I have put only 10% of my money in share market and I play just do trading in that amount. I got myself an edelweiss brokerage account, the broker calls me with recommendations and does transactions on my behalf. so does not affect my day time job as well. Here is what i have learned from my experience till know.
1. Brokerage houses give you 5 times the coverage for intra day trades. Stay away from that!! If you have 10K, buy worth 10K only.
2. Always keep booking profits.
3. Dont let your ego come in the way of booking a loss. Share prices do fall. If the share is making a significant loss, may be its time to get out and put the money on some other share.
4. Be early to catch the news. For e.g Network 18 has been taken over by RIL. As soon as the news came, the stock zoomed 35%
1. Brokerage houses give you 5 times the coverage for intra day trades. Stay away from that!! If you have 10K, buy worth 10K only.
2. Always keep booking profits.
3. Dont let your ego come in the way of booking a loss. Share prices do fall. If the share is making a significant loss, may be its time to get out and put the money on some other share.
4. Be early to catch the news. For e.g Network 18 has been taken over by RIL. As soon as the news came, the stock zoomed 35%
Just my 2 cents
-NEVER go by your broker's recommendation. The broker pushes stocks that are beneficial to HIM, and work out according to HIS aims.
I'm saying this having followed my brokerage's recommendations, and lost a LOT of money.
-"Be early to catch the news". For a common investor, you can NEVER catch the news early enough. The man on the street is the LAST person to hear the news. So don't trade on news, try to analyze a company so you can anticipate the path forward for a company.
For example, Network 18 was ALREADY owned by arms of Reliance, which you'd have seen by checking the top shareholders. The latest move was just a formalization of the same.
The brokerage houses i think publish daily recommendation. SBI securities publish a pivot table. one can even refer that.
NSC interest is taxable as per your slab. There are better options like bank FDs if considering for pure investment.
If you are to use it as a tax saving instrument under 80C then PPF would be a better option with tax free interest but it has a 15 year lock-in. In case of PPF you can even withdraw a certain amount before the lock-in period, check the link below. There are also tax saving bank FDs which will probably give the same returns as an NSC.
http://taxguru.in/income-tax/nsc-tax-benefit.html
http://profit.ndtv.com/news/cheat-sheet/article-seven-must-know-facts-about-ppf-accounts-322231
If you are to use it as a tax saving instrument under 80C then PPF would be a better option with tax free interest but it has a 15 year lock-in. In case of PPF you can even withdraw a certain amount before the lock-in period, check the link below. There are also tax saving bank FDs which will probably give the same returns as an NSC.
http://taxguru.in/income-tax/nsc-tax-benefit.html
http://profit.ndtv.com/news/cheat-sheet/article-seven-must-know-facts-about-ppf-accounts-322231
No they don't. As you have used it as a tax saving investment. All tax saving options under 80C have a minimum tenure.
All this discussion is related to tax saving instruments. If you just want to invest then any regular FD will have a premature withdrawal option. For a little more risk/return you can also invest in company bonds/FDs; these do not have an option of premature withdrawal.