I have been listening to the same thing for 1 year while the market is breaking new highs. Of all what I have read is post pandemics/major economic down we've usually had bull run for 5/10 years as the market tries to recover.
What Investment mistakes you made that you want others to avoid?
- Thread starter raksrules
- Start date
raksrules
Northstar
Noob Query: If I want to invest in large cap stops of certain companies like ay Infosys, TCS, HUL, Dabur (I think this is not large cap), HDFC, HDFC Bank, ICICI, Airtel etc, should the current conditions matter if my investment horizon is like infinite, as in sell only if I really really need money.
Soufosale
Discoverer
Ok
Mr.J
Herald
Unlike investments, there are no fundamentals to cryptocurrency. At best, it's a volatile gambling systems. At worst, it's a Ponzi scheme where people keep convincing each other and the world about 'going to the moooooon'.
Soufosale
Discoverer
You can follow the fundamentals and still lose money on stocks. You are comparing a system that's centuries old with a new technology that's barely a decade old. Of course establishing the fundamentals take time.
I don't believe crypto will replace normal currency or every coin will "gO tO ThE mOoN". But I do believe that crypto has a future and we will see more adoption and real world applications.
Sorry if OT
The only thing is share valuations still have some association with the results, operations and future plans of a company and hence has a basis they can be used to judge upon.
Crypto has always been the wild wild west. Regulations will certainly make it more acceptable in society but then it will also lose a lot of its use cases relating to hiding one's identity.
It has failed as a currency because it is a speculative bubble and no serious business can afford to bear its wild swings and concerted manipulation on a regular basis. It will still continue to serve a niche but it will largely still be related to speculation, gambling, extortion and shady transactions.
Mr.J
Herald
I think you didn't even understand what I said. You can lose money everywhere. It is not about earning or losing money. Stock market operates on fundamental concept of ownership in a company. What does it actually mean when I own 100 cryptos? What even are fundamentals of cryptocurrency?
And if you want to talk about losing money then let's see. You buy stocks worth 10,000. It falls 10% and you decide to quit. You'd still get 9,000 back. In crypto you can lose 100% of the money invested because of scammers and hackers.
The only future I see is everyone trying to hoard cryptos in case they blow up like Bitcoin did. How would that even work as a currency if very few are going to spend it? There are some true believers in crypto but they are like 1% of the crowd. Rest all are just jumping on the bandwagon hoping to get rich.
Soufosale
Discoverer
Ahh...ok. Misunderstood that part about fundamentals.
But you could also potentially lose 100% if the company you invested in goes under. There's still risk in stocks.I agree that Crypto has close to no regulations and the number of scams are disproportionately high. But like stocks, some crypto investments are riskier than the rest.
I also don't see crypto being used freely as a currency anytime in the near future. When I'm putting money into a coin I usually see it as an investment in the tech rather than its usability as currency.
I'd be lying if I said I wasn't in it for the money but isn't the whole point of investing to make money ?
Mr.J
Herald
Chances of that happening are very low. If a company is going under then its death knells are already in the media for weeks if not months. Even in a scam like Satyam, investors got shares of Tech Mahindra after acquisition.
If you want to invest in the tech behind crypto then you can invest in tech and/or telecom stocks like Amazon, Microsoft, Intel, AMD, Qualcomm etc. Their products, such as microchips and servers are what's powering the crypto. There are even mutual funds for that so you won't have to go through hassle of setting up an account to buy US stocks from India.
Yes you can. Current situation does not matter. Noon can predict what will happen in the future. Worst thing you can do is analyse too much and waste time. Just invest and monitor the fund. Second worst or best thing that can happen is market will correct itself (it will fall). The con of this is you might see negative returns for few months (Don't withdraw during that time) and the pro is you will get better cheaper NAVs. Just look at the better side of things and start asap. Waiting won't help. Specially for you since you don't have a time frame in mind .. eventually market will go up and you will reap benefits. Keep in mind after investing for 10 years your entire investment amount will almost double in 2/3 years and that is when the magic starts.
Yes.... the idea of investing into large caps is primarily to defend / save your value of amount invested with slow but upward growth. This large cap investments can also become your base for taking risks in smaller amounts towards more riskier assets.
e.g. Let's presume that you have invested uopto Rs. 10 lakh in large caps.... this then becomes the backing on the basis of which you can then consider investing into slightly riskier assets like small caps & Mid caps to the tune of say 1/2 lakhs since they can potentially fetch you more returns than large caps percentagewise... subject to you having purchased the said small & mid caps at good prices.
raksrules
Northstar
Use the regular physical form and also make sure you are investing into DIRECT fund and NOT REGULAR.
raksrules
Northstar
Please make sure you always invest in DIRECT funds and not REGULAR. You will save lot of money that way. Don't listen to your LIC uncle or you dad's friend or anyone if they say otherwise. Every fund has DIRECT and REGULAR.
I have made loss in profit as my dad didn't know about this and now I handle all my own investments and make sure it is always direct mode.
Pros and cons of keeping mutual funds in demat form
From r/indiainvestments wiki
Should I get a Demat Account to buy units in Mutual Funds? - India Investments Wiki
No! You do not need demat account / trading account, to invest in mutual funds.
frozenscotch
Explorer
Why you want to invest "through" icicidirect portal ? It might make your life easy to track and invest, but I dont know anymore advantages you get.
Also, I guess, you can invest in "DIRECT" funds of ICICI fund house only though this method, if you want to invest in other funds like Axis, it will be in REGULAR fund, please check. And as already suggested, only DIRECT funds and DIRECT GROWTH will be better.
Other method which I suggest is , create separate login/folio in fund house which you want to invest. ex. you want to invest in Axis large cap, Kotak mid cap, then create a login in kotak and axis and invest from their respective websites. Add your investments in moneycontrol and you can track it easily.
This method might be a bit cumbersome, I personally like to keep this way and its a monthly-1-time-job.
And there are new age platforms like groww (its same as icicidirect site which you were asking about), and invest in DIRECT funds. You can check it out
frozenscotch
Explorer
Only track ? you can use any platform.
You want to invest ? currently, seems like its doing decent.
I wrote a bit cumbersome, but a safer (I believe so) method just above, have a look