Add new comment | SPJIMR

Add new comment

Mr.Jayaraman, thanks for your enlightened views. Every one dreams to earn quick money. Unlike other unethical and antisocial activities share market is one place where a wise investor can earn the highest rate of returns on his investments. But it is not easy at this seems. Share market one of the most volatile in nature. The greed of earning more money at faster speed motivates almost all of us to participate in share market activities. Among all the instruments available stocks are the most lucrative mode of getting higher returns relatively in a shorter period. Most of the investors do not have detailed knowledge of the companies they are investing in, they completely rely on market driven tips and information received from friends, relatives etc. Broadly stocks market sentiments are driven by various factors like global happenings, political developments, economical status, seasonality and cyclicality. Generally investing in stocks runs on Herd mentality, people but stocks which others are buying and sell stocks which are being sold . The stock markets has witnessed many big scams during 1990’s and 2000’s which temporarily refrained retail investors from investing stocks for some time. I fully acknowledge Mr. Jayaraman’s views on investing in quality scripts and booking partial profits (profit skimming) during boom period and switching to new scripts which are on upswing. These days investing in stocks has become more safe after introduction of Demat accounts, also there are portfolio management services available, on TV channels , Technical analysts are recommending scripts with safe upside potential , many web sites like moneycontol.com, equitymaster.com are sharing details analysis on segments, companies and their financials. Though all this support and guidance is easily available the decision when to purchase and when to sell stocks is a critical decision investors are required to take. I have many times faced embarrassing situations where the stocks I bought have suddenly started sliding and stocks I sold showed upswing. Before investing in any script the investors should check the financial performance of the company, the future outlook of the industry, may scan through various financial ratios like ROCE, Debt Equity ratio, PE ratio, PEG ratio and many more. In the end I feel “Patience” is the most important quality a wise investor should exhibit for consistent and attractive returns.

SPJIMR
Bhavan's Campus
Munshi Nagar | Dadabhai Road,
Andheri West | Mumbai - 400 058, India
Tel:+91-22-2623-0396/ 2401
      +91-22-2623-7454
Fax:+91-22-26237042
 

Delhi Centre
Bharatiya Vidya Bhavan Campus, 3rd Floor
Gate No. 4, Copernicus Lane
Kasturba Gandhi Marg, New Delhi-110001
Tel: 8130545577, 011-23006871, ext-871 

Locate SPJIMR