Is it a good time to invest in the share market?
It's not surprising that first-time investors often worry about the timing of their initial stock purchases. Getting started at the wrong point in the stock market's ups and downs can leave you staring at big losses. So it become important to have proper research and study before entering a particular stock as its important to enter and exit at the correct time. It is certainly true that markets have gone up smartly over the last few months, but this is still the beginning of what is very likely to be a multi-year bull run. So, while the golden opportunity to invest is when the indices are correcting, but still its a good time to put your money into stocks. However, if you do not have access to quality research, then we have some of the options for beginners to ripe the benefits of higher returns from stock markets. These are
- One can simply invest in an Index Fund or the frontline indices Nifty or Sensex as they will generate steady returns if the markets do well. Before investing one should verify the index which the fund is tracking and compare the expense ratios with other similar funds. Moreover, you remove risk of human error by selecting an index fund as it involves passive investing in the index stocks only.
- The other route to enter the stock market is via Mutual Fund Investments either through Systematic Investment Plan (SIP) or a Systematic Transfer Plan (STP), depending upon whether your investable surplus is a lump sum or will be generated at regular intervals. This is considered as best option as the funds are actively managed by the fund managers.
- One can also go for some quality blue chips / large cap stocks like Reliance , HDFC or one can study the holdings of the top performing mutual funds and can build their own portfolios.