(Last Updated: October 8, 2018)
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Stock Market is soaring? Should You invest now?

  • The stock market is at an all time high. So, the potential investors are worried if this is this the right time to invest.

    In fact, there is no good or bad time to enter the stock markets. The equity market can give you returns if you think of staying for a longer period of time. But, you need to be careful and not to get carried away looking at other's rewards. It's quite risky to invest in stocks and one needs to follow a good strategy before investing.
    You can gain or you may lose it all, as it is normally said.

  • @wealthladder I agree with you on the point of staying invested for a longer time. But there is a good or bad time to enter depending on the type of investment method (lump sum or SIP). Let's consider two people, both started investing in 2007 but person A has invested as a lump sum while person B invested with a SIP.
    Now, this was the period of the great recession.
    Considering they both have invested an equal amount of money by 2012, Person A might still be having some unrealized loss while Person B has his balance sheet in green.

  • Yes,

    SIPs considerably reduce the risk of investing in stock markets. It keeps one disciplined and money averaging helps to build a good portfolio for not that savvy investors.

  • @saketnarayane It is obvious that the sip could be the best method of averaging the cost. As far as the lumpsum is concerned, one can invest in a liquid fund and can do an STP for averaging the entry cost.

  • @wealthladder I was just giving an example of the existence of good or bad time depending on the method of investing. And it is too soon to say SIP is the best method. I can modify the same example to make lump sum look better. Let's say Person A & Person B both started their investment in January 2009, when the market hit the lowest point. Now no matter when you see it in the future, as long as they both have invested the same amount, the person with lump sum investment wins.
    So for certain situations, certain methods would prove out to be more beneficial. But the difficult part is, to identify the opportunity.
    That's all I have to say ๐Ÿ™‚

  • Well sip is not for people looking for opportunities.. opportunities seeking is more like trading whereas sip is more of a couch potato passive and once in a year review kind of an approach

    Comparing one approach with another is really not possible.

  • @saketnarayane You may be right to some extent. But, comparing these two different methods is actually not possible. SIP is a regular way to invest and suits different investors as per their financial goals. While lumpsum might be good for certain other category of investors based on their surplus funds and long term financial goals. One method may have advantages over the other. But, there are so many factors affecting the overall performance in the markets. So, we can't specifically define which one is the best ๐Ÿ™‚

  • To initiate trading in the markets, you first need to make investment goals at your own risk within your timeline in mind. Then you can also research the latest financial condition as well as the history of different companies by going through their income statements or balance sheets. After complete information on online commodity trading market, you can start trading.

  • I wish i could give you the right answer. But in stock market, there is no exact right or wrong time. Anything can happen in the market. I will tell you this that you should invest in the market with the amount you could afford to lose. Otherwise you will face a lot of problems in the future.

  • @gillbroking So true! Having clear investment goals is the essence of trading. Whether we wish to follow regular trading or want to stay invested for longer duration, this all needs to be analysed. Doing thorough analysis and staying financially alert generally helps while investing our money.
    We are visualising stock markets reaching new highs, it's quite lucrative for potential investors. But, there's no need to get carried in emotions. One has to act cautiously and wisely.

  • Hello guys! I think stock market is a perfect market for your investments at any time as it always favors the potential investors who can manage to stay for a longer period of time. It depends on you to utilize your knowledge properly. Thank you so much

  • @saketnarayane In long term your return will not make much of difference. If you take the CAGR of Nifty 500 or Sensex , it will not make much difference.

  • @kvijay12345 CAGR for much longer term you mean, like 15-20 years. In 8-10 years you still might have fluctuation and time could matter.

  • @SaketNarayane , as @Wealthladder said there is no good or bad time to enter markets , If you would have invested this year in small cap even via SIP it would have been a complete loss. The fund houses that gave 80% return last year are in 40% loss this year. again it depends on what is your portfolio.
    For Midcap-small cap - 10 + years
    For Debt - 5 years

    This is my personal opinion.

  • @kvijay12345 Right to point out " There's no good or bad time to enter markets". It's the correct strategy that needs to be followed to attain the desired returns. One shouldn't panic on a sudden market fluctuation and act wisely. Even if the market is down, one needs to show patience and act cautiously to reduce the losses, if any.

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