Where Should I Invest 10,000-20,000?

sujit712 · #1 9th February 2012, 10:51 PM

Please tell me which are the good shares that I can buy? Right now I am 20 yrs old and want this money to be utilized in my future?

paran · #2 10th February 2012, 06:45 AM

May be Fixed Deposit.

Prudent_Investor · #3 10th February 2012, 02:39 PM

Quote:

Originally Posted by sujit712

Please tell me which are the good shares that I can buy? Right now I am 20 yrs old and want this money to be utilized in my future?

Dear Sujit,

It is great that you are thinking of investing into equities at an early age of 20.

However, before deciding on where to invest it is very important to think in terms of what you expect out of it in future.

1) time horizon : till which period you can remain invested?

2) target amount : how much you want this 20000 to grow to in the above period ?

3) risk : how comfortable are you losing part or whole of this capital ?

For low risk (0 capital loss) you should invest in Bank FDs.

However if your investment horizon is long term (5+ years) and you are comfortable with accepting a 20% loss on capital (even unrealized, in the short term) you can consider investing into equities through mutual funds/ETFs.

sujit712 · #4 10th February 2012, 11:23 PM

Quote:

Originally Posted by Prudent_Investor

Dear Sujit,

It is great that you are thinking of investing into equities at an early age of 20.

However, before deciding on where to invest it is very important to think in terms of what you expect out of it in future.

1) time horizon : till which period you can remain invested?

2) target amount : how much you want this 20000 to grow to in the above period ?

3) risk : how comfortable are you losing part or whole of this capital ?

For low risk (0 capital loss) you should invest in Bank FDs.

However if your investment horizon is long term (5+ years) and you are comfortable with accepting a 20% loss on capital (even unrealized, in the short term) you can consider investing into equities through mutual funds/ETFs.

Can you please tell me how can I invest in equity through mutual funds

vaduvur · #5 13th February 2012, 09:09 PM

Quote:

Originally Posted by sujit712

Can you please tell me how can I invest in equity through mutual funds

This is a good fund to invest in, for Rs.5 - 10k of your money and a 3 - 5 year time frame to exit. I believe the fund does not accept lumpsum investments, but one could / must do it in installments over a period of time -- Systematic Investment Plan.

Welcome aboard!

vinvest · #6 13th February 2012, 09:22 PM

Quote:

Originally Posted by vaduvur

This is a good fund to invest in, for Rs.5 - 10k of your money and a 3 - 5 year time frame to exit. I believe the fund does not accept lumpsum investments, but one could / must do it in installments over a period of time -- Systematic Investment Plan.

Welcome aboard!

Hmm..

I doubt if any fund will force a SIP on people. Where is this written?

And how does one define lumpsum?

Also assume if lumpsum is defined as anything greater than 25K, then What if I start a SIP of 30K per month & stop it after one month - what will they do?

vaduvur · #7 14th February 2012, 07:05 AM

Quote:

Originally Posted by vinvest

Hmm.. I doubt if any fund will force a SIP on people. Where is this written?

Though this isn't the definitive source, the last two paragraphs of this article (published 5th Feb, 2012) has the details.

daminimalvi · #8 17th February 2012, 03:30 PM

Hi Prudent_Investor,

I am also new in this market but want to earn quick by investing.

1) time horizon : my time horizon will be 2 years but I think you will suggest me the best time. Explain me if I can play in short term

2) target amount : 30000 is my target amount but I can invest more 10 thousand in depending on earning.

3) risk : Could you please explain me which is the less risk factor scheme excluding FD's.

Please help me. As I like your ideas very much. Also suggest me some good brokers for investment.

Prudent_Investor · #9 17th February 2012, 07:14 PM

Quote:

Originally Posted by daminimalvi

Hi Prudent_Investor,

I am also new in this market but want to earn quick by investing.

1) time horizon : my time horizon will be 2 years but I think you will suggest me the best time. Explain me if I can play in short term

2) target amount : 30000 is my target amount but I can invest more 10 thousand in depending on earning.

3) risk : Could you please explain me which is the less risk factor scheme excluding FD's.

Please help me. As I like your ideas very much. Also suggest me some good brokers for investment.

It is wishful to think you will earn 30000 by investing 10000 in 2 years time. For that your investments need to grow at 73%.

For equity investments, assume a return of 15% over long term (at least 5+ years). There are no shortcuts to make quick money easily.

The safest way to start investing is start a SIP in a balanced funds. Go to the learning section and clear your basic doubts about different kind of funds and ways to invest in them.

daminimalvi · #10 18th February 2012, 09:46 AM

Quote:

Originally Posted by Prudent_Investor

It is wishful to think you will earn 30000 by investing 10000 in 2 years time. For that your investments need to grow at 73%.

For equity investments, assume a return of 15% over long term (at least 5+ years). There are no shortcuts to make quick money easily.

The safest way to start investing is start a SIP in a balanced funds. Go to the learning section and clear your basic doubts about different kind of funds and ways to invest in them.

Thank you very much. Also Inform me if you are having any new posts for better investment. Thanks a lot once more for helping me.

Prudent_Investor · #11 18th February 2012, 09:08 PM

Quote:

Originally Posted by daminimalvi

Thank you very much. Also Inform me if you are having any new posts for better investment. Thanks a lot once more for helping me.

You can refer to the following:

Buying Mutual Funds Directly from AMC?

Please Suggest Some Funds

Portfolio Check Needed

Also do a search and post your specific queries (if any).

garothmaan · #12 21st February 2012, 01:19 PM

I would say just put it in NSC and forget it for 5 years, and keep rollig it for 4 times(20 years). Make this amount your retirement plan from now itself. This will teach you how to be patient with investments and money. Test yourself and see, if you break this chain you are a moderate investor, but if you keep it well, then you can surely be the best in stocks.

vinvest · #13 22nd February 2012, 09:24 AM

Quote:

Originally Posted by garothmaan

I would say just put it in NSC and forget it for 5 years, and keep rollig it for 4 times(20 years). Make this amount your retirement plan from now itself. This will teach you how to be patient with investments and money. Test yourself and see, if you break this chain you are a moderate investor, but if you keep it well, then you can surely be the best in stocks.

So he should test himself for 20 years before he invests in stocks?

.

garothmaan · #14 23rd February 2012, 02:07 PM

Quote:

Originally Posted by vinvest

So he should test himself for 20 years before he invests in stocks?

.

Yes, stocks should be the last option for investors who have accumalated Rs 10000/- at 20 years of age IMO.

vinvest · #15 25th February 2012, 11:19 AM

Quote:

Originally Posted by garothmaan

Yes, stocks should be the last option for investors who have accumalated Rs 10000/- at 20 years of age IMO.

Why so?

THIS SPACE IS LEFT INTENTIONALLY BLANK.

garothmaan · #16 29th February 2012, 02:47 PM

When he will be 40 yrs old he may be earning 40Ks a month, so he can plan his SIP with a bigger hand and he will be very cautious with money if he has a healthy family and good happy destiny. All cash, which is expendable after secure savings and tax savings, only can be worth investing in stocks. That's why so!