The goal with a lower capital base is first and foremost to protect that capital by investing in not just one stock and to invest only in very low risk stocks.

Once your original investment has doubled which TechniTrader students learn how to invest for such returns, you can then expand your number of stocks you invest in.

100 share lots is a standard sized lot and will be treated by your broker who fills from their inventory (most retail orders never make it to the exchanges as they once did).

That means you need to look at lower priced stocks. This is not a bad thing as many people might tell you. Actually, if you are careful, buying a stock that is just beginning a major recovery after its bear business cycle, and is reinventing can be a huge opportunity for a new investor with a small capital base.

3 stocks is usually what is a starting point for a lower capital base. Each should be in a different industry and preferably working on or in one of the new technologies I mentioned in a previous answer on Quora.

What you need to do is to learn how to quickly analyze a stock that is in a bottoming formation to determine if this is a company reinventing OR if it is a company slowly declining due to new technology displacing its revenue source.

Below are two examples for you so that you can see the difference. Stock charts now offer not only technical data but also fundamental data in a graphical format that makes it faster to screen down a list of stocks to just 3 to invest in after further analysis. There is not enough time or space in this format to do a full analysis so this is just a synopsis to help you get started.

GE is reinventing. it is culling aka selling off divisions and acquired smaller firms that are not making money for GE. It is tightening up expenses, and reducing overhead. GE like many stocks that are removed from the Dow due to lack of performance is doing everything it can to become a new GE with a strong growth future. It had a good earnings report for the 4th quarter of 2019 and is working toward a good 2020. That doesn’t mean that GE is going to skyrocket upward tomorrow. Nor does it mean that GE will be strong all year. What it means is this company is doing what is necessary to bring the old aging technology into the new 4th Industrial Revolution new technology.

This is a weekly chart so you can see the past few years of data. When investing you need to study a candlestick chart on a weekly or monthly scale first. The red line is what I call “the bottom completion level” for the technical analysis of this stock.

For 100 shares the investment would be somewhere around $1200 - 1400 dollars at this moment in time. The bottom is incomplete at this time technically so the stock may retest the lows around $7–9 dollars but this would be a normal pattern for a company reinventing. Sometimes companies have starts and stops during reinvention.

A company that is not reinventing and is at risk of delisting and other negative problems for investors is MACY’s (symbol M). This company took too long to reinvent against the Amazon dominance of online shopping. So now it is at risk of going out of business. Sears, JC Penney and other brick and mortar stores did not recognize the overwhelming displacement technology from Amazon until it was too late. They are at risk of bankruptcy or having to totally restructure the company. These firms are all low price but none are good investments at this time because they are in a weak financial state. They are still not reinventing.

Study the charts. They look very different. Macy’s is not bottoming to begin an uptrend as is GE. Macy’s is still in a downtrend. Fundamentals are very weak and the company is now facing restructuring which can take a decade or longer.

Macy’s is a low priced stock within your budget but it is TOO risky to invest in. It would take too long for the stock to recover and return profits.

On the opposite side of the spectrum, TSLA has been in the news constantly and many new investors are putting their hard earned money at huge risk. It is NOT that TSLA won’t go up. Rather it is the fact that price is way above its fundamental values. When this happens a correction will occur and the price may move down to a technical fundamental support level. That is a huge loss for new investors with small capital bases. But new investors don’t understand price action to fundamental values and speculation.

TSLA would gobble up all of your capital and you wouldn’t be able to buy a standard lot which puts you at risk of exploitation via spreads by your retail broker who makes money on every transaction via spreads. Yes there are no fees charged anymore but brokers are a for-profit public company and they are making a lot of money from their customer base.

So TSLA is in the news. It sounds exciting but it is a very high risk investment for a new investor. It can and probably will to higher but a collapse back down to the fundamental values is inevitable at some point.

Anytime you see a stock price on a weekly chart go vertical like TSLA you need to discard it as a potential investment or put it on a watchlist to consider for a later investment once the speculation has dropped out of the price. TSLA is in what we call a bubble of speculation. Many new investors have a huge risk they are taking with the crowd herd mentality. Again, I repeat, TSLA can go higher. But it will need to correct at some point as fundamentals are far below the current price.

Corrections to price can be downtrends or sideways price action. Both are a type of price correction to pattern out excessive speculative price action.

Great question—investing your money wisely is one of the smartest things you can do to secure your financial future. There are tons of ways to invest, and the best one for you depends on your goals, risk tolerance, and how much time you’re willing to spend managing your investments. The classic options include stocks, real estate, bonds, mutual funds, and even starting your own business. If you want something simple, index funds are a great way to get started—they track the market and require little effort. For those who love a little more risk (and potential reward), individual stocks or cryptocurrency might be appealing, though they come with a rollercoaster of ups and downs. And of course, real estate is always a solid option if you’re looking for long-term wealth-building—rental properties, house flipping, or even REITs (Real Estate Investment Trusts) let you get in on the game without owning physical property.

Let me tell you a quick story—back when I first started investing, I made the mistake of going all-in on a single tech stock because I had a "gut feeling." Spoiler alert: That gut feeling wasn’t backed by solid research, and I watched my investment tank within months. Lesson learned! After that, I diversified my investments across index funds, real estate, and even a side business. One of my best investments was actually in a rental property. I bought a fixer-upper, spent weekends doing DIY renovations, and rented it out. Now, that property not only pays for itself but also gives me a steady stream of passive income. So, if you're just starting out, remember: diversify, think long-term, and don’t put all your eggs in one basket. What kind of investing are you thinking about?

An example below will make the idea crystal clear.

Suppose Aarti puts Rs.5000 p.m. in a Recurring Deposit for 30 years. Bhavna starts 10 years later and saves Rs.7500 p.m. for 20 years. Chitra takes 10 more years to start and saves Rs.15000 p.m. for 10 years. Thus all three would have saved Rs.18 lakhs.

Assuming they earn 10% p.a. interest, at 55 Chitra will have about Rs.32 lakhs, Bhavna about Rs.56 lakhs and Aarti an astounding Rs.1 crore. As you can clearly see, saving for 'more time' gives much better results than saving 'more money'. This happens simply because Aarti keeps earning interest on interest on interest for years together; which is much better than investing 3 times the amount as Chitra does.

This is the magic of compounding. This is the secret of becoming rich.
As you will observe, you need 3 things to become a millionaire:

• Some small amount of money
• Time, Discipline and Patience
• A little bit of financial knowledge

Given the ingenuity and bargaining skills, I am sure that saving a small amount from the monthly budgets will not be a very big challenge for the housewives. All you need is to start say with even Rs.500 every month. As you go along, you will learn to squeeze more and more amounts. And slowly but surely you will be on track to becoming a millionaire.

And, of course, when it comes to (a) giving time, (b) maintaining discipline and (c) being patient, the aptitude, potential and competence of a typical housewife is legendary. She would simply outclass men in all these areas. [In fact, I am of the firm opinion that women have more self-control and willpower then men; and hence are likely to be more successful in managing money.]

Opening an RD does not require any financial expertise. But you may need some financial knowledge if you want to fast-track your millionaire aspirations. Believe me, handling financial affairs is no rocket science. Don't get disturbed by all the jargon thrown at you. Dump all heavy-duty calculations into the dustbin. None of it is necessary. It all boils down to plain and simple common sense...and loads of commitment.

Just 6 months to 1 year would be sufficient to become sufficiently proficient in money matters. You are intelligent enough to turn your small children into doctors, engineers and scientists. So I see no reason why you cannot turn small amounts into millions. Trust me this will be a lot easier than bringing up kids.
Moreover, given that the financial knowledge is going to serve you for your lifetime, you should begin as early as possible. But it is never too late to start. Besides, you can pass all this financial wisdom to your kids too. So, in effect, your efforts to acquire financial knowledge are going to be rewarding for generations to come.

Firstly, in my opinion you should start investing only when you have created an emergency fund. An emergency fund can be three to six months of your monthly income. As soon as you have this fund, you can start with the investments.

Assuming that you already have an emergency fund, you should invest the above-mentioned amount into 4–5 stocks.

Here is my recommendation for the next 5 years time frame.

1. Infosys: In last 5 years the stock has given around 226% price return and also dividend of 160.75 Rs. Per share in last 5 years.
2. Asian paints: One of the market leader in the paint manufacturing. The stock has corrected in last few days and I expect the stock to take support around 2800–2850 levels, which can be a good entry level.
3. L&T Finance Holdings: It is one of the underrated company in NBFC sector. The stock is currently trading at Rs. 81 and Rs. 100 is acting as a major resistance for the stock. Above 100 I expect the stock to touch 140–160 levels. Also, the book the value of the stock is around 75.
4. MCX: MCX has a near-monopoly in the commodity exchange segment in India, with a market share of over 92%. 1550–1600 can be good levels to enter into the stock. In last 5 years the stock has given dividend of 116 Rs.
5. Chambal fertilizers: The stock is currently trading at 320 levels which is a good buy zone. My long term target (3 years) would be around 500–550.
6. You can also add Bajaj finance, jubilant foods, BSE or Heromoto corp.

Note: I am not a SEBI registered advisor and the views shared here are based on my personal opinion. Please do your own research before investing.

At this time, Market is heated up quite a bit. So be cautious while putting your hard earned money altogether. Better invest only 20–30% at this time and buy on dips (and I mean atleast 10% drop) from your remaining amount.

Since you're asking for long term, I'm listing 12 evergreen stocks.

Here we go:

• Tata Consultancy Services

This is "The Best" IT services company in India and 3rd best in the world according to market capitalisation.

• Computer Age Management Services

CAMS is Mutual fund registrar in India. It has 70% market share. It also has duopoly as of now. No competitors nearby.

If you're highly bullish on mutual fund future in India, your first choice should be CAMS.

• Avenue Supermarts (DMART)

Dmart is "The Best" retail chain in India founded by Radhakishan Damani. He himself is super bullish on this company. He has 74.99% shareholding in Dmart and the maximum margin for promoter is 75%.

• Bajaj Finance

Bajaj Finance is the best financiers in India. It has given highest CAGR returns out of Nifty50 stocks since years.

• Info Edge

Info edge is one company which is a way for us investors to invest indirectly in emerging online startups. They invest in startups at the very early stage and wait for them to become unicorn.

They have 100% stake in websites like Naukri, Jeevansathi, 99acres and Shiksha.

Whereas they have considerable amount of stake in websites like Zomato, Policybazaar and Meritnation.

• Jubilant FoodWorks

This company operates Domino's and Dunkin Donuts chain in India.

They are the only ones from Quick service Restaurant (QSR) category which are making profits out of this business in India.

• Relaxo Footwears

Relaxo owns most of the famous footwear brands in India such as Sparx, Flite, Bahamas etc. It has the majority of organised footwear market share in India.

• HDFC Bank

I won't stop suggesting this bank for future as well. The most trusted private sector bank in India.

• Divi's Laboratories

Divi's Laboratories is the only stock from Pharmaceutical sector which has been consistently delivering higher returns since years.

• Asian Paints

Asian Paints is the most demanded paint all over asia. It has versatility in its catalogue where we can get paints for vehicles as well.

• Pidilite

It is the brand whose chart I love the most. This consistency is because of kinda monopoly in adhesive sector.

Its product sold as 'Fevicol' is a brand in itself.

• Astral

Astral is India's best piping company. It has given consistent returns over years.

So these are few stocks I would suggest you to invest in for long term compounding. Don't invest lumpsum in this heated market.

(Images source: Google)

Thank you!

Chaitanya Agrawal ✍🏼

Since you asked for a recommendation on individual stocks and no one as of now has suggested any I will give you some individual stocks I like.

However being new to the stock market I would agree partially with the others that an ETF or mutual fund would be a better choice. Actually I would suggest an ETF that tracks the S&P 500 as the best choice. Mutual funds have some high priced experts that pick where to invest and studies have shown that most all of them are incapable of beating the market over any longer period of time. Mutual funds have larger fees to pay for those experts. Studies have also shown the lower the fees the better the return for the investor. Do stay away from any mutual fund with a load (commission). Here are some of the stocks I like right now.

Dow Dupont. They just completed a merger a few days ago and plan to split into a number of different companies. I think the odds are good that this will unlock a lot of value and would not be surprised to see the value double in the next 2–3 years. I just added some a few days ago and may add more.

Disney. The stock has pulled back lately. Most of the company is doing well and should grow but the negative on this stock is that they own ESPN and ESPN has been losing subscribers very fast. It is a solid company that has the potential to continue growing. At the current price I see it as a buy and likely to provide a 10% plus return for the next few years.

Tangier Outlets. The stock is way off it’s high. A lot of retail stocks are down for fears of what Amazon is doing to retail. People see the outlet malls as a place to get bargains and I doubt Amazon will kill outlet malls. At the current price it is a bargain with a very nice dividend and the potential for a nice gain.

Home Depot or Lowes. Business has been strong for both (more so for Home Depot). I think the recent hurricanes will have a positive effect on sales and earnings and this should be a good place to park some money.

Here is one that may be a bit of a gamble. RiteAid. Currently the stock price is dirt cheap. There had been a plan for Walgreens to buy RiteAid, originally for $ 9.00 a share, revised to $ 6.50 a share. That was abandoned and now they are buying less than half of their stores, mostly the less profitable ones. RiteAid stock is at $ 2.50 a share. Assuming the FTC approves the store sale I expect RAD to be between $ 5.00 and $ 8.00 a share within 2–3 years. Should they not approve the sale I would dump the stock and it will probably be around $ 1.75 a share. I am comfortable enough with this that I own 2800 shares. I would not suggest you buy more than 200 shares which would set you back $ 500.00.

Another option to consider would be Pepsi. I own Coke but not Pepsi and both are good but Pepsi is more diversified with their snack food business.

AT&T would be another good choice. The stock is down a bit right now but still has a lot going for it and a great dividend (over 5%).

I have some hesitation in suggesting this stock but DineEquity would be another to consider. This is IHOP and Applebys The stock is way down, still very profitable but has had comp’s down for a while. At the current price I see it as a bargain. It has an excellent dividend as well.

There are a lot of stocks I like but that seem pricey right now. I would put Apple, Johnson & Johnson, CAT, Facebook and AliBaba in that group.

If you are investing 10 grand I would not put more than 2 grand in any one stock.

As a disclaimer I will mention that I own shares in all companies mentioned except Pepsi, Cat, Alibaba, Home Depot and Lowes

My two cents :

• Invest in a way that does not consume your time
• In a way that minimizes your regrets
• Lets you focus on your work
• have a firm risk management plan in place. this is really the most important … if I lose 30% I will be out of the market for six months … simple.
• learn after you have started something, don’t try to learn everything and then start investing. learning never stops.
• Talk to friends and family. Don’t do it alone. Don’t make the same mistakes others have made and learnt from. This is easier said than done I know. People usually clam up hen it comes to money.

This might be a good point to start : Flagship

Later on, I would recommend you to look at some ideas here :

What can we learn from Norway about investing

Is It Impossible to Imitate the Big Investment Gurus ?

Between alpha and beta

It used to be about 20 stocks that could reasonably approach the, say, S&P500. But then came the internet and the personal computer that changed the game completely.

Instead of searching around hoping to find some info was a daunting task. Now you are inundated with web sites galore that have every ratio, beta, alpha, sharpe, sortino and on and on to provide you with the knowledge to invest.

No they don’t. Oh, you may get a clue here and there that ‘this stock’ is primed for growth, dividends, etc. but unless you have the computing power to generate a proper allocation, you are simply playing the investment game that the industry would like you to do.

Some now say that there is far more correlation in the market place (which means that more stock will trade very similar to each other and not provide the diversification offset of previous.) So you need more securities- some say 50 and for those REALLY wanting pure diversification- up to 350 varying stocks- in order to have enough. enough.

Well, let’s face it- if you are just starting out there is effectively no place to go to ‘easily’ figure out the value of each stock and how it works with many others. Problem is, it gets pretty impossible and time consuming to do it even active managers since they fail to best the basic S&P500 index. They may do it one year but the statistics indicate they drop below the S&P500 after that.

So what should you do? Probably the the S&P500 would be a realistic start now.

Oops, I lied. Putting money into the market right is not necessarily the best thing to do. Trump’s verdict may roil the market and I suppose it could go up some more. Maybe. But the coronavirus is catching the whole world off guard. I have been waiting for a pandemic for a long time- though it appears doubtful that it will kill many people globally. Though say it got into India, Bangladesh, etc. and it will obviously create a ‘perfect’ place to spread. You have climate change, Australia burnt to a crisp, Iraq wants us out, we missed a war with IRAN only because the casualties were not found out till later- the list goes on. That is a lot of volatility and it could hurt you if you invested now.

My point is- wait till the dust settles. You need to recognize that losses in the market were 49% in 2000 and 57% in 2008.

You cannot afford a 50% hit right off the bat.

Anyone who doesn’t want to manage their portfolio as a full-time job should buy no-load mutual funds instead of individual stocks. These funds are managed by professionals (who manage the portfolio as a full-time job). You can further simplify your choice by choosing an index fund, which tracks a major stock index, so you don’t have to think about sectors and asset classes. A company called Morningstar rates the performance of mutual funds. If you pick a fund highly rated by Morningstar, you only have to check in on its performance every few years.

Human stock pickers don’t generally outperform the averages over any significant time period (there is some evidence that the cannot.) So, if you just want to grow a portfolio, by a fund. If you want something to brag/bitch about, buy stocks.

Investing has become a lot more accessible these days because of technology.

One way to start, is to start small; get some experience to learn how things work along with reading and talking to others.

I have reviewed a few of these products to help you get started - including Robinhood (commission-free trading), Stash (ETFs explained in plain old language), and my favorite Stockpile (fractional shares in individual companies at a very low commission).

Also, a post on one of the challenges to get started investing. It’s the motivation when the rewards are small.

Personally, I like individual stocks when getting started (though, I’m making the assumption that people also have a 401K or some other retirement account in which they invest in funds, and a cash safety account, and maybe even a mortgage - so there’s diversity in funds, cash, and real-estate). When getting started, you want to learn. Individual companies, with all their personality — think Amazon, or Tesla, or Apple, or even Walmart, make for interesting “subjects”. When learning about a company you will learn how they compete, what makes them valuable — and you’ll bring your experience as a customer to evaluate their business. You won’t necessarily know more than the professionals, but to invest long term, you don’t need to.

Anyways, I hope this helps. I’m sure many disagree (some rightly, some wrongly). Remember there are a lot of successful ways to invest… the important thing is to get an education, one that’s practical and comes from experience.\

Good luck!

David

If you are wondering to opt for long term investment, I must tell you, you are at the right track my friend. If one is investing such an amount of capital into stocks, one should consider long term investment only and should select the stocks very carefully. I will let you know some stocks and the right portfolio too but I still encourage you to go through several processes of research and then only select the best stocks that fits your budget as well your investment plan.

Here is a typical portfolio worth Rs 50000 which you can consider while investing. One can easily expect good returns if they hold the stock for a considerable amount of time.

I hope this helps you out :)

Try to invest in stocks that generate dividends. Never put more than 33% of your money in the same stock - spread out your investments into at least three areas (I do ten). Try not to be risky or you can lose a lot. Look at your favorite companies, where do you eat, what do you buy, do you have passion for something special? I chose companies like McDonalds, CocaCola, GE, Boeing, DuPont, Apple, Google, a “basket” of up to 20 for long term investments. When there is a great return they get sold and profits go to new investments. Study the market and pay as few fees as possible. Nobody really wants to help YOU make money, they just want to make money from fees…using your money.

Statistically - investing in stocks and shares has been the most consistent way to make money.

However unless you want to take the time and trouble to research which stocks you should buy I would recommend you contribute to a fund that is set up to do so - and rely on those whose job it is to do the research for you.

On the advice of a financial advisor, I have invested in a fund that has made a return of 47% in a year (tax free) - and nothing whatsoever to do with currency trading. Of course a lot if this is due to timing. I invested when the stock-market had crashed when the COVID lockdown started and don’t expect the same rate of return in the future.

And at the end of the day, the fund has assets behind it - shares in actual companies that pay dividends to the shareholders - and not an electronic wallet.

I do not currently have any money to invest. :)

At some point, if I continue with sex work, I will have money and will have to look into investing it. Right now, poor health for most of 2017 has resulted in me not working as much as I would like, and I've had high bills to pay. My medical bills this summer have been a couple hundred a month - even with NHS treatment I've still had to pay for prescriptions, and with the amount of infections I've had I've been on a LOT of different medications, in addition to my usual ones. I'm still paying off bills of around £2000 for my summer in China, and in September I went to Spain to see Sabrina and a bunch of other Quorans, which was another couple hundred.

The poverty line in this country is around £15,000 a year, and the median income is around £26,000 a year for the UK, and around £31,000 a year for the Home Counties where I live. So far, I'm not even making the £15,000 a year to get me above the poverty line, AND I'm supporting my non-working mother.

Right now, I'm just keeping my head above water. I've lived for so long on a very low income (when I was getting disability and Carer’s Allowance, the two came to around £6000 a year, and when my disability was stopped I was surviving on £2500 a year in Carer’s Allowance) that it feels like I have a lot of money now, because I can buy a burger or a T-shirt without thinking too much about what I'd have to sacrifice. But I don't have a lot, not really. September and October have been bad months for working - they're always slow anyway, as people are trying to be frugal after spending money on summer holidays, but I've also been too sick to take on many clients, and I've been working maybe one week in three. Some weeks in Sept-Oct I haven't had any bookings at all, after having a minimum of six or seven a week over the late spring and summer. But I got four this past Saturday (which I had to cancel as I have a nasty cold - boooo) so hopefully things are looking up.

Once I start earning more money, I'll pay off my holiday debt, and after that's done I'll probably put 25% of what I earn into savings and then use the rest on everyday bills plus travelling, though it'll depend how much I earn.

As a carer for my mom my whole life, I've never had savings of more than a couple thousand, and I often end up spending them on health emergencies (mine or my parents’). And as a person whose health was so poor she was not expected to live out her teens let alone her twenties, I've never thought much about financial planning for adulthood or retirement. I have life insurance, but no pension or 401(K). Having savings will be…novel.

This answer is part of a series on Working as an Independent Escort, for a Quora Session hosted on October 30th, 2017.

If you're going to invest in the stock market you will have to do a lot of research and study before you make any kind of trades. You should know where the company is going, price entry points and of course the economics surrounding. All kinds of things to come into play from currencies to the price of certain goods. They all could have an impact on how the company will do and it will reflect on it's share price.

When you do trade have patience and don't neccesarily sell at the first profit seen. Stay away from the penny stocks. Look for real companies on the bigger markets that make money and have some kind of direction. Follow the news and trends .. the information is always out there you just need to know how to collect it and use it to your advantage.

Investments in Futuristic stocks need a careful planning and proper research over all the stocks and the stock markets. Given below are some stocks which can be considered while investing for 5 years:-

● Asian paints are a great option for investment till 5 years. This stock has given better returns than FDs. It has given over a return of over 13 % in 1 month and has given overall 126 % in the past 5 years. Also, it is not a volatile company and has a volatility of around 35 %.

● Dabur India limited is one stable and low risk stock. This stock has been giving better returns on equity than bank FDs. Over the past 1 month, the company stocks have given 9 % returns and over the past 5 years it has given 90 % returns. Also, the increasing use of Ayurveda products among this pandemic situation is making Dabur a big and preferred choice among the people.

● HDFC bank Limited stocks are one of the multi bagger stocks which have futuristic value. The stocks have generated around 4% returns over the past 1 month and around 116.3 % returns over the last 5 years. Also, these are low-risk stocks and are quite stable.

About Me : I am a full time trader and fund manager. If you want to learn or discuss more, contact me on twitter (aseem_singhal)

This portfolio of Rs 50000 can get you better returns.

Trident Group

• Company is expected to give good quarter
• The company has been maintaining a healthy dividend payout of 51.08%.

Indian Energy Exchange Ltd

• Company is expected to give good quarter
• The company has a good return on equity (ROE) track record: 3 Years ROE 46.21%
• The company has been maintaining a healthy dividend payout of 32.61%
• The company's median sales growth is 16.01% in the last 10 years.

Jindal Steel and Power Ltd

• Stock is trading at 1.19 times its book value
• Company is expected to give good quarter
• The company has delivered good profit growth of 29.55% CAGR over the last 5 years
• Debtor days have improved from 26.11 to 20.62 days.

Larsen and Toubro Ltd

• The company has been maintaining a healthy dividend payout of 32.82%.

Tata Motors Ltd

• Company is expected to give good quarter.

Borosil Renewables

• The company is almost debt-free.
• Company is expected to give good quarter
• The company has delivered good profit growth of 25.44% CAGR over the last 5 years

IRCTC Ltd

• Company is expected to give good quarter
• The company has a good return on equity (ROE) track record: 3 Years ROE 26.75%
• The company has been maintaining a healthy dividend payout of 59.70%.

Don't Worry these stocks will perform well in the upcoming Years.

Get 💠BankNifty Calls 💠Intraday Calls 💠Long Term Recommendations in NSE STOCK PRO (SEARCH IN TELEGRAM ).

Commodity market is where you will be buying and selling commodities like gold, silver, copper, lead, crude oil, and natural gas. The reason why most investors and traders prefer commodity trading over equity trading is because of the very long working hours (14 hours a day vs. 6.15 hours a day in stock market) and high exposure. Silver and crude oil are best to trade which has enough liquidity.

The best way to get started is to attend beginner's classes (online or offline). Then watch news and learn technical analysis. You can gain good knowledge. But, it takes a lot of time. It will take at least one year to learn and understand the market.

But if you are looking to make profit with Rs.5000/- investment without investing one year's time, I would suggest you seek technical advice from an expert. I'm a millionaire trader in Commodities and Stocks. I have doubled and tripled my money several times in the market. With 5k investment, you can make a monthly profit of Rs.15,000/-.

Hit me up on LinkedIn or message me here if you need help with your trading. Cheers!

Try to find a Discount Brokerage that will allow you to do a "practice account" or "paper trading account." Utilize the educational materials on their platform, track your portfolio for a while, and get more comfortable with all of the terms. Some of the platforms that will do that are Kapitall.

There are also managed account services that will manage the $500 for you in the stock market, they are called robo-advisors. The startup I founded Hedgeable has no account minimum, we have a sophisticated platform targeted to busy professionals.

Other services with low minimums include Betterment.

Disclaimer: This is not a solicitation to buy or sell securities or an offer of personal financial advice. Past performance is not indicative of future performance. It is suggested you seek out the help of a financial professional before making any investing or personal financial management decision.

I would suggest splitting the money between three different mutual funds or ETFs — each with different strategies, so that their holdings are not identical.

One third of the money could go into a mutual fund or ETF that historically outperforms the S&P, another third into a sector fund that performs well in down markets, and another third into a long-term bond fund.

The suggestion that you should become an expert at analyzing and picking stocks is absurd, and a complete waste of time. It’s like you asking “What is a good aerobic exercise that I can start?” and someone suggesting that you should become an Olympic gymnast.

Whenever someone asks me what stocks they should buy, I always say the same thing - Investing is sort of like gardening.

Suppose you'd like some tomatoes to eat.

One simple option is to go to the grocery store and buy some pretty good tomatoes. You can think of this option as kind of like buying an index fund - it's easy, and generally you can be pretty confident about the quality.

Another more complicated option is to grow your own tomatoes. You'd have to buy the soil, plant the seeds, water them everyday, tend to them regularly, and after a while, if you've done a good job, you might end up with tomatoes that look pretty good! If you're particularly talented at gardening, you might even end up with tomatoes that are marginally better than the ones from the grocery store!

But were they worth it? Well, from a tomato point of view, probably not. The immense time and effort that you had to put into those tomatoes were probably not worth the marginally better quality.

UNLESS....you actually like gardening! Well now, that's a different story. If you genuinely enjoy gardening, then of course they were worth it! You had a lot of fun, and you were able to enjoy some pretty great tomatoes!

Investing is very much the same thing. Unless you really enjoy investing and are prepared to dedicate a lot of time to it, you're much better off buying an index with low fees. This probably applies to 99% of people. If you're the other 1%, then why are you even asking? If you really enjoy investing, go and find out for yourself which stocks are the best buys. Have fun!

Let’s start with banking sector:- HDFC Bank is a must, can choose one between ICICI or Axis.

IT Sector: - Go with Wipro and may add NewGen but in case of a market correction mid-caps and small-caps would be affected more. Add NewGen after a slight correction.

Pharma:- Laurus Labs would be a good bet here. Marksans could also be a good bet.

Insurance sector:- SBI Life and ICICI Prudential. There is a very large potential in insurance sector as it is still not a very established business as of now but things are changing for good.

FMCG:- you could skip this sector.

MIsc:- Asian Paints and Pidillite should definitely be a part of your plans.

If anyone feels I have missed some good ones, please let me know in the comments.

If you found this answer useful, do leave a like.

Do check out and follow my space: Stock Market Predictions

Happy Investing!

Following are the stocks that you can choose-

Deepak Nitrite Ltd (CMP 2,221.60)-

• Company is almost debt free.
• Company is expected to give good quarter
• Company has delivered good profit growth of 64.84% CAGR over last 5 years

CDSL (CMP 1,498.80)-

• Company is almost debt free.
• Company is expected to give good quarter
• Company has delivered good profit growth of 24.10% CAGR over last 5 years

IEX (CMP 232.90)-

• Company is almost debt free.
• Company is expected to give good quarter
• Company has a good return on equity (ROE) track record: 3 Years ROE 46.21%

Reliance Industries (CMP 2,335.85)-

• Company has reduced debt.
• Company is expected to give good quarter

Infosys Ltd (CMP 1,686.20)-

• Company is almost debt free.
• Company has a good return on equity (ROE) track record: 3 Years ROE 25.39%

Get Intraday & Positional Trades On WEALTH CITI Search On Telegram ✅

This is only for educational purpose.

I will give you the same advice I got for a similar question. Take 100 bucks and invest in literature on this topic, best dividend you will ever make.
To be honest, a gain of more than 10 % per year is not possible without taking serious risk. Meaning that you WILL NOT get a better return over a longer period of time.

Some additional stuff, because you asked strangers via the Internet about investing money:

1. Buy stocks and stocks only, nothing fancy for the first years. If you want to invest in the oilmarket = stocks of oilcompanies).

2. Find a cheap stockbroker (keep the costs down).

3. Check the relevant taxlaws.

4. Diversify, 2 ETFs and 4-6 stocks (different countries, different branches).

5. Check the relevant exchange rates.

6. Be patient.

7. Invest in what you know, (try to) not invest in what you don't understand.

8. Ignore suggestions by other people.

• “Low cost ETFs” - There are ETFs that will let you gain some exposure to each of these. They are fairly low cost, so they don’t become a drag on your portfolio returns. I would recommend Vanguard ETFs. I am a big fan.
• However, if there is one thing I have learnt from trading in the best firms, it’s that risk management plan comes first. As boring as it sounds, you need to decide at what loss levels you will bail out. That is much more important than diversification.
• Services like portfolio rebalancing, optimal tax allocation algorithm do add a lot in performance.
• Later on, as the amount you invest grows, I would suggest that you look into strategy diversification. If you look at my answer to What is Warren Buffet's investment method? strategy diversification and not asset class diversification is what you are looking for. There is no point to allocating to all asset classes all the time. You can do better.

Our Flagship Portfolio was specifically designed to have a basket of strategies like Global Macro, Risk Parity, Momentum, Daily Fractional Rebalancing.

For instance our asset allocation would change quite a lot. I remember having allocated only 0.37% to emerging markets the day before Brexit and a couple of days after Brexit the allocation had changed to 17% due to the market opportunity.

Here is some helpful research on Flagship. This portfolio is a great example of how quant funds would strategize.

I also recommend you to look at some ideas here :

What can we learn from Norway about investing

Is It Impossible to Imitate the Big Investment Gurus ?

Between alpha and beta

Depend on how many more 5000 you have already/planning to save?

Lets take an example: This is the first 5000 and you have (nearly) just started your career. I take this example because this is the time when people ask for saving guidance. Later they are able to take to their own decision( :) ).

Primary goal should be to build a small emergency fund. Ideally twice to thrice of your monthly salary. This will inject a confidence in you. This emergency fund can be in form of money in saving bank or (liquid-able) FDs. I prefer FDs as the interest rates are high and chances of using FDs when it is not the last option is low.

Once this emergency fund is available, second goal should develop an habit of saving. This can be done by opening a RD of Rs 5000 recurring starting of every month. This will help you develop an habit of calculating your savings when planning for monthly expenditure.
These RDs should be of a year tenure and should be reinvested as FDs.

Later once enough liquidity is achieved we can think of more advance form of investment where you spread your investment across different heads, debts, equities, insurance, gold, etc. What is the distribution ratio should be? This depends on couple of things, depends on individual what is their priority:

1) When an individual thinks that he/she is covered for emergency/scheduled expenditure he plans for long term investment. Here we try to maximise returns. We can risk as we have time in hand and with time most (not all but a good percentage) of the investment options gives good return.

2) When an individual doubts his/her backup option to bail out an heavy expenditure, he/she should opt for less risk option. This provides more liquidity in hand for disposal. Yes this is an less lucrative option as compared to the one above but this hedges loss which may occur if money has to moved out in a down market.

Before investing, you need to decide few things.

1- For short term, medium term or for long term investment ?

2- How is your risk taking abilities, is it low risk, moderate risk or high risk ?

3- your current age, are you young (18 to 30) years or medium age (30 to 50) years or old age (50 to 60) years group ?

Diversification of a portfolio does not mean, its mandatory to invest in high risk instruments.

You can diversify your portfolio only in mf investment. That may your debt or equity categories.

How to take a portfolio diversification according to your age.

For (18 to 30) years age - high risk - long term investor.

Portfolio allocation… (with 100%)

1- Large & midcap 40% - Mirae bluechip (Investment time period 7 to 10 years)

2- multicap/elss 30% - Parag parekh lt equity or Axis long term equity (7 to 10 years)

3- midcap 20% - kotak emerging equity (more than 10 years)

4- smallcap 10% - Sbi smallcap (more than 15 years)

You can raise your holdings in midcap & smallcap according to your risk appetites.

For (30 to 50) years age - moderate risk - medium and long term investment.

Portfolio allocation… (with 100%)

1- Largecap 30% - Axis bluechip (Investment time period 5 to 7 years)

2- multicap/elss 30% - Parag parekh long term equity or mirae tax saver (7 to 10 years)

3- Hybrid 30% - Sbi hybrid equity (5 to 7 years)

4- midcap 10% - kotak emerging equity (more than 10 years)

For (50 to 60) years age - low and medium risk - short term and medium term investment.

1- large cap 30% - Mirae largecap (Duration - 5 to 7 years)

2- Hybrid fund 30% - Axis hybrid equity (5 to 7 years)

3- Corporate bond 20% - UTI corporate bond (1 to 3 years)

4- Banking & psu fund 20% - DSP banking & psu (1 to 3 years)

If you like to extend investment time period something more, you can go with medium duration fund. I,e Sbi medium duration fund

For (60 above) age group - conservative investor. They should not look at equity fund.

1- Balanced advantage fund (upto 5 years)

2- Banking & psu debt (1 to 3 years)

3- Corporate bond (1 to 3 years)

4- Bank fixed deposit / SCSS scheme.

5- Short term debt (1 year to 2 years)

(Look, these are sample portfolio. I am not recommending these schemes. These are my liking schemes. You decide where to invest.)

Here, in the above portfolios, one spot is missed I,e 5th one. You can add gold or stocks in 5th place. You can add (5 to 10%) of allocation in your portfolio.

In gold investment, available investment process 1. Physical buying gold 2. Gold etf 3. Gold bond (for conservative investor) 4. Digital gold.

In stocks, on trading you can invest as short term, medium term or long term investment. You need to take full analysis on share trading. Pick good stocks. Follow - money control site.

Both gold and stock tradings are high risk investment. But if you plan to include these in your portfolio, you can do but be causius.

So, how to invest Rs. 1lakh ?

In case of mf investment, better option is systematic investment plan. Don't think about lumpsum investment in equity. That is because at present, how market reacts, every day up and down trend - give tension in investors mind.

In case of debt fund, you can invest lumpsum in debt category, no problem.

Best schemes in all categories of mf - I pick 2 schemes of a particular category.

My favourites -

Largecap - Axis bluechip, mirae largecap

Large & midcap - mirae bluechip, Canara robeco equity opportunities

Multicap - Parag parekh long term equity, Sbi focused equity

Midcap - Axis midcap, kotak emerging equity

Smallcap - Sbi smallcap, Axis smallcap

Hybrid - Sbi hybrid equity, mirae equity hybrid

Elss - Axis long term equity, mirae tax saver

In case of debt fund, follow money control mf sites. Their mentioned good schemes. Also you can get best gold funds and stocks. 👍

The pros diversify their assets, and highly recommend it for everyone. Which is why I’ve been doing the exact opposite, for the last 26 years. I invest in one stock, at a time. I started with $10k. After 4 years, my stock was worth $135k. I resigned from my job, and haven’t worked a day since.

Many pros advise people to invest in “low cost stock index funds”. Google it, if you wish. Over the last 3 years, over $2 trillion have been invested in these funds.

What no one tells them: When the money comes in, the fund invests it in the stocks, within the index (S&P 500, Russell 2000…etc). They have no choice in the matter. In many instances, this pumps up the price of shares, beyond any reasonable price to earnings ratio.

When this occurs, several money managers short this companies, driving the share price down. In general, mutual funds, have a list of stocks, that they invest in. When a lot of money pours into one, the same over valuation occurs.

In my opinion, financial advisers have had their mindset, trained and conditioned, to serve the rich. For the most part, the rich are more concerned, with not losing money, rather than making substantial sums, from their stock investments.

On 4/3/2011, I bought NVDA, at $17 a share. It didn’t start making me money, until Feb 2014. I’m patient and have years of confidence. For 2016, NVDA was the best performing stock, in the S&P 500. It began the year at $30, and ended at $105.

Their next earnings report is due mid Feb. Google “shorting NVDA” (Or any stock you’re interested in). I like to know, what the opposition thinks. A hedge fund is shorting NVDA. Their price target is $100 a share.

It depends!

• What’s your attitude to risk? Risk is the chance of losing some or all of your money - but low risk investment give low returns.
• What do you know (or can learn?) Investing in stuff you do not understand is a really bad idea, but you probably already know some types of investment, like a bank account.
• How long are you looking to invest for? It’s very different if you need access to the cash within a few days, compared to people who are willing to lock it in for a decade or more.

Basically low risk is things like bank accounts. Medium risk is investment funds and share indexes which split investment across a large number of company shares. High risk is things like individual company shares. Extreme risk is stuff like crypto, forex and gambling.

For investment funds, indexes and funds, find a reputable share broker. In the UK, I use one called freetrade, but there’s lots of others. Check some reviews first, ensure they are a real company by checking company registration, and absolutely do not use one someone on social media pushes you towards.

Many will offer a basic account for free. With only £1000 this is probably a sensible option, as even a low monthly fee would eat into it. Most also have decent educational material to teach you the basics and the terms used.