Dear sir,

Sir for long term investment, should we go for 'A' category shares or can we go for any category. Pls give 5 - 6 good scrips within rs 200. And pls comment on that stock.

Why within Rs. 200?

How does that make a difference?

if we deposit 100000 in 200 value scrip,then it will be 500 shares...
if we deposit same in 1500 value scrip, then it will be 66 shares

if the first scrip (also be a good company) moves to 250 (50 rs more) then it will be 500*250=1,25000

25,000 profit

if the second scrip even go to 1700(200 rs more) at the same time,then it will be 66*1700=112200

12,200 profit.........


i am very new to share market and i don't know whether my assessments are totally wrong or not............. pls comment...............

I suggest you redo the exercise using percentages. If the cheap stock grows by X% or the expensive stock grows by the same (X%), if you put equal amounts of money in both stocks, your gains (rupee-wise) will be the same.

Hi thanks for your reply..............

as "alchemist" Quote

"If you pick all large cap stocks, your returns would be similar to the returns of Nifty/Sensex."

my belief is also same and i "think" always good small cap companies will move faster than heavy weight companies..............

this is just my belief................................

Okay! Small cap companies' shares aren't necessarily low-priced and large-cap companies' shares aren't necessarily high-priced.

by large caps, I mean large companies...

if the stock of a company is trading at Rs 1000 and I split it into 100 shares, the new shares will trade at Rs 10.

this doesn't mean the company was large earlier and now is small.

the price of the company's shares depends both on the value of the company as well as the number of shares that the company has issued.

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In Large companies the quote goes up and down very fast. Better to go for day trading for a risk taker.