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The Stock Market thread


KnackChap

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I was into stock, like a month back. Had invested in Vodafone, Yes bank, Mazgaon dock. Told wife about it, how I bought the shares at very low price (except Mazgaon) and how I can make profit in long term.

 

She mind washed me into removing all the money and made me invest it in monthly LIC, as it will be beneficial in showing investment / tax deduction.

 

Had a secret and a short 2 year stint in stock market.... that's my entry and exit story. Don't think, I am getting back into stock market.

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6 minutes ago, Animus said:

I was into stock, like a month back. Had invested in Vodafone, Yes bank, Mazgaon dock. Told wife about it, how I bought the shares at very low price (except Mazgaon) and how I can make profit in long term.

 

She mind washed me into removing all the money and made me invest it in monthly LIC, as it will be beneficial in showing investment / tax deduction.

 

Had a secret and a short 2 year stint in stock market.... that's my entry and exit story. Don't think, I am getting back into stock market.

LICs have dog sh*t IRR. Might as well store money under your bed. 

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51 minutes ago, Animus said:

I was into stock, like a month back. Had invested in Vodafone, Yes bank, Mazgaon dock. Told wife about it, how I bought the shares at very low price (except Mazgaon) and how I can make profit in long term.

 

She mind washed me into removing all the money and made me invest it in monthly LIC, as it will be beneficial in showing investment / tax deduction.

 

Had a secret and a short 2 year stint in stock market.... that's my entry and exit story. Don't think, I am getting back into stock market.

Going to be honest with you . going with LIC might well be your worst decision.

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11 hours ago, kunjanp said:

I am a finance guy, from fundamentals to technicals and algo trading. This is what interests me. 

Generally with algo. trading, I do analysis on weekends, majorly breakout, harmonics and tracebacks. Come up with certain resistance and support strike prices for next week or expiry, code it in my python script and let Kite API do the execution. Majorly limited to option selling.

 

But the strategies for which I am not able to do due diligence every weekend (strategies are based on the above mentioned techniques only), I take up data from NSE/Yahoo finance and backtest them locally on my PC.

 

With the new SEBI margin rules, it's a very high capital game now.

 

woah woah buddy, sounds very interesting, but complete n00b here .... can you explain that in regular people language , pls :P ?

 

Also, a general question to the forum, Can some good , kind hearted fellow explain the most basics of trading questions as below ?

1. Investing in individual stocks vs mutual funds vs sip ?

2. Tax implications of #1 ? And does it make sense to invest in tax saving equity funds, if your LIC+PF takes up most of 80cc ?

3. How to choose a mutual fund / SIP plan ? Right now, I do a google search, but maybe there's a better (more scientific way) ?

4. Heard from a colleague about something called Index funds, which are apparently the safest forms of equity investment while giving much better returns than FD.  Is this true ?

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1 hour ago, Animus said:

As in...how?

Worst returns even bad than index etfs. they lure you in with fancy numbers. no proper customer service.

 

10 minutes ago, kkapoorr said:

Is this thread open to discuss MFs as well? My job doesn't allow me to invest in the markets except via MFs. So started 3 SIPs and investing about ~20K per month for 2 months now. 

Check out parikh parakh long term equity fund. transparent guys . i do both stocks and MF's . 

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1 minute ago, Ne0 said:

1. Investing in individual stocks vs mutual funds vs sip ?

 

I do both. 30% MF 70% Direct.

 

2 minutes ago, Ne0 said:

3. How to choose a mutual fund / SIP plan ? Right now, I do a google search, but maybe there's a better (more scientific way) ?

 

Depends on your risk appetite. IF very conservative go with hybrid large caps , if aggressive go with mid/small cap funds.  also never choose a fund based on past returns.

 

4 minutes ago, Ne0 said:

4. Heard from a colleague about something called Index funds, which are apparently the safest forms of equity investment while giving much better returns than FD.  Is this true ?

HE's not wrong . Almost most of the time INDEX Funds have given better returns than FD. always have and INDEX FUND ETF or INDEX FUND MUTUAL FUND.

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4 minutes ago, Ne0 said:

 

woah woah buddy, sounds very interesting, but complete n00b here .... can you explain that in regular people language , pls :P ?

 

Also, a general question to the forum, Can some good , kind hearted fellow explain the most basics of trading questions as below ?

1. Investing in individual stocks vs mutual funds vs sip ?

2. Tax implications of #1 ? And does it make sense to invest in tax saving equity funds, if your LIC+PF takes up most of 80cc ?

3. How to choose a mutual fund / SIP plan ? Right now, I do a google search, but maybe there's a better (more scientific way) ?

4. Heard from a colleague about something called Index funds, which are apparently the safest forms of equity investment while giving much better returns than FD.  Is this true ?

 

  1. Individual stocks: You need to do your research, may need active management, full control by you over investing decision; MFs: More passive in the sense you find a good fund house and a well managed fund with historical returns-you can invest and sit back. Reevaluate every 6m or so. SIP: A way to invest in MFs
  2. IIRC MFs have LTCG>1yr exempt upto 1L. Stocks also have it >1yr.
  3. Can begin here for MF research: https://www.valueresearchonline.com/ 
  4. Index funds basically replicate an index (Nifty/Sensex) and rebalance - similar risks to MFs.
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For MF, I hate SIP. I find that it's just the MF's way of keeping the money tap open. 

If you aggregate/list the stocks of the 1-2 MFs you want to invest in, say on Kite, you can easily predict the trend and find out the days you want to invest rather than blindly go for SIPs. 

SIP in a way is still a lumpsum investment at the end of the day, on a predefined date, just without any study, in a senseless way. 

People might say it instills discipline, but I think it instills laziness, were you're believing that MF marketing hype and not studying in your own, and finding correct times to enter. 

In the market, timing is everything. MF is just another way to invest in the market. 

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13 minutes ago, Ne0 said:

 

woah woah buddy, sounds very interesting, but complete n00b here .... can you explain that in regular people language , pls :P ?

 

Also, a general question to the forum, Can some good , kind hearted fellow explain the most basics of trading questions as below ?

1. Investing in individual stocks vs mutual funds vs sip ?

2. Tax implications of #1 ? And does it make sense to invest in tax saving equity funds, if your LIC+PF takes up most of 80cc ?

3. How to choose a mutual fund / SIP plan ? Right now, I do a google search, but maybe there's a better (more scientific way) ?

4. Heard from a colleague about something called Index funds, which are apparently the safest forms of equity investment while giving much better returns than FD.  Is this true ?

1. Unless you know what you're doing, go with mutual funds. 

2. No tax implications. Both have the same taxation structure. Only one thing is that you can play with capital gains by selling off your loss making stocks in the portfolio to neutralise the gains and then rebuy them if you're planning to hold. Can't do that in MF. No point in investing in tax saving funds if your 80C is getting taken care of. 

3. 2 options.

Option 1- Just go all in on index fund. It basically mirrors the index and gives you decent returns over a long term. Benefits are that very low expense ratios (less than 0.2 percent). Con is that its basically momentum investing so the fund ends up buying high and selling low. You don't need to worry about that too much. 

 

Option 2- Go for specific funds and those are a bit hard to track. Depending on your risk appetite, you can allocate your funds to a couple of blue chip funds and some to mid cap funds. But one thing to look out for is expense ratios. These funds have high expense ratios (more than 2%). Basically they're deducting 2 percent of funds under management regardless of profit or loss. So, at the end of the day, few end up beating the index in the long run. 

Once you have decided on the size of the fund, you can look at past return, standard deviation, etc but at the end of the day future performance can't be predicted. 

 

4. Index funds are indeed safe but remember that high return = high risk. While they'll give you better returns in the long run, there can be temporary volatility which can last for a few days to a few months or even a year since the market goes through cycles. Basically, if you have an emergency, you might not get the best possible return while FD you can just liquidate anytime. 

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7 minutes ago, Bird Bird Bird said:

For MF, I hate SIP. I find that it's just the MF's way of keeping the money tap open. 

If you aggregate/list the stocks of the 1-2 MFs you want to invest in, say on Kite, you can easily predict the trend and find out the days you want to invest rather than blindly go for SIPs. 

SIP in a way is still a lumpsum investment at the end of the day, on a predefined date, just without any study, in a senseless way. 

People might say it instills discipline, but I think it instills laziness, were you're believing that MF marketing hype and not studying in your own, and finding correct times to enter. 

In the market, timing is everything. MF is just another way to invest in the market. 

Timing of few days doesn't matter in a long term horizon. There is nothing easy about timing the market. 

 

SIPs are a good way of participating in the economics growth without specific expertise. 

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7 minutes ago, adity said:

Timing of few days doesn't matter in a long term horizon. There is nothing easy about timing the market. 

 

SIPs are a good way of participating in the economics growth without specific expertise. 

Agree to disagree. 

 

SIPs are a way to keep the money taps open for MFs. 

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14 minutes ago, Bird Bird Bird said:

Agree to disagree. 

 

SIPs are a way to keep the money taps open for MFs. 

So you're saying every person should keep cash in their account and wait for markets to drop and invest lumpsum in MFs? 

You have to understand that its unrealistic for most people. 

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