The Investment Thread

hackernewbie, SIP are better for mid to long term ( 3-4 yrs to 10 yrs)
I'm doing SIP since last 5 yrs, and increasing every yrs. The best return i got are ICICI's value discovery ( mid and small cap), ICICI's Dynamic (diversified equty), HDFC's Equty growth ( Large cap) and HDFC's top 200. (all these funds gave me 18-26% return for 5 yrs)
Sector funds give more return but more volatile and risky, However Diversified equity funds are more safer options. Small and mid cap funds gave best return in last 4-5 yrs time. So choosing any Mid cap fund is also good.
If you want to take risk in sector fund, the infrastructure and banking funds are better option, for next 3-4 yrs.

Dont's go for tax saving funds (ELSS) if you want to exit any time before 3 yrs.
 
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ashish0712

TravelForNirvana
Equity Markets in a Correction Mode, Falling Indian Rupee ~USD/[email protected] 60.725, Macro Looking Weak ...But despite all concerns given the Valuations it's a good time for buying few Quality Stocks. Recommend everyone to start making portfolio of these stocks which will deliver superior returns in 12-15 months.

Recommendations-

-Bajaj Finance - Rs. 1374
-Mahindra Finance -Rs. 250
-HDFC Bank -Rs. 623
-Kotak Mahindra Bank -Rs. 688
-ING Vysya Bank -Rs. 604
-Axis Bank -Rs. 1249

Disclaimer~Investments in Equity Market is subject to Market Risk.
Hello Everyone, Had Recommended Few Stocks to Fellow Members Last Year...Most of them have Performed Well Barring Few (Mahindra Finance and ING Vysya Bank)

-Bajaj Finance - CMP -Rs. 2260 ~ Return -65%
-Mahindra Finance -Rs. 259 ~ Return 3.50%
-HDFC Bank -Rs. 827 ~ Return - 33%
-Kotak Mahindra Bank -Rs. 954 ~ Return 39%
-ING Vysya Bank -Rs. 611 ~ 2%
-Axis Bank -Rs. 1890 (Adjusted for Split) ~ Rs. 375 ~ Return -51%

Weighted Portfolio Return of 32%

Reiterate few Stocks (including some from the existing list) for Next 12-24 Months

- Kotak Mahindra Bank -Rs. 953
- Axis Bank -Rs. 375
- Bajaj Finance -Rs. 2260
- HDFC Bank- Rs. 827
- Cholamandlam Finance -Rs. 382
- Eicher Motors -Rs. 9900
- CARE Ratings-Rs. 1222
- Federal Bank -Rs. 115
- Page Industries - Rs. 7737
- Lupin - Rs. 1182

Disclaimer~Investments in Equity Market is subject to Market Risk.
 
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Roadhunk

MUSAFIR HU, PARYATAK NAHI
Guys, I am relatively new to investment. I would like to open one Demat account. And i want to start SIP or any sort of investment. I got some information from my bank regarding there SIP schemes. Can anybody please give me advise regarding investing in shares, SIP or other investment schemes?
 

Big Daddy

Super User
As someone who owns a house and stocks, I had always believed that buying a house is the worst possible investment you can make, and it is impossible for anyone to convince me otherwise. It appears that people are also reaching similar conclusion: Want to help India? Don't buy a house

The problem with buying a house is that you don't really know what problems you might get into. A bad neighbor might make you sell it at a loss. Earthquakes and natural calamities might ruin house. Vandalism is also a possibility. The list goes on and on. There as so many unpredictables that risk is always high and returns are never very attractive.

Buy REITs, but avoid buying a house because it requires huge upfront investment which will reduce your working capital to really low levels for many years. Stocks, on the other hand, can be bought for a few thousands of dollars at a time. To me, the convenience of stocks in investments is unbeatable.
 

citymonk

Super User
As someone who owns a house and stocks, I had always believed that buying a house is the worst possible investment you can make,...

Your new year prophecy about Indian property bubbles going to burst soon has come partially true. Though bubble is intact but sale is almost nil. Prices have not fallen as it seems holding power of new owners and government mafia backed builders is good. Prices are on hold for time being.

Modi and his old friends from Gujarat have some how taken Sensex and few shares to new heights but In real market their is huge recession and it is being felt now though government may not accept it.

Any idea about how long this recession spell will last and also will property prices correct in real sense.
 

Big Daddy

Super User
Property values are function of incomes. When incomes do not rise, it is hard to see how property values can rise. Part of India's surge in property prices can be attributed to rise in incomes which in turn was tied to growth of Indian economy. One thing I can guarantee is that average Modi's GDP growth rate will be below UPA's average of 6% growth over 10 years. So, incomes are not going to grow as fast as they did in the last decade. So, property prices will also show modest growth. Stocks will show good growth in part because companies can cut cost even if economy is showing modest growth. With cost cutting, the incomes will not rise as fast as they did in the past and unemployment will increase.

India still remains a closed market economy. Current PM protected manufacturing sector and even now he wants everything built at home. India does not have high degree of specialization to manufacture things at low cost. If you cannot sell Indian products outside India, India does not prosper. Part of prosperity of India over the last decade was due to selling software products and services outside India. IT advantages are short lived and India will feel the pressure of competition (even from China as it is starting to specialize in software and building its own operating system to compete with Windows).

There is only one way to grow economy-- competition and innovation. Those who compete and innovate always get higher salary and have higher standard of living. To innovate and compete in today's world, you need advanced education and a lot of hard work. The rules are pretty straight forward, but no one will acknowledge them as it is better to speak of nationalism and keep your job. Voices of nationalism sound good and most of the Indians are too naive to understand the big picture and trust too much on their politicians. No one person can make India successful, entire country has to change. For me the 2000-2010 period was an aberration, both in terms of income growth and property value growth.
 
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