An easy-to-browse ready reckoner for everyone, with lots of easy tips
PLAY THE MARKET THROUGH MUTUAL FUNDS
1. As our market will take some time to achieve "objective maturity", consider the stock exchange as a perpetual sheep market where all types of sheep are bought and sold daily.
2. Everyday, there will be a different "herd mentality" orchestrated by a new shepherd, viz. news, events, results, decisions, etc., driving all types of sheep into the market or out of the market, at a consideration.
3. Instead of trying to daily predict the "Shepherd of the Day" yourself, it is best to "hire managers" - by investing in long-term diversified mutual funds - who will do this job for you, either daily or periodically, in a systematic manner through SIPs.
4. Count your "sheep value" through an Annual Performance Review, and if you find your "managers" lagging in identifying "good shepherds" for you that will enrich your sheep value, immediately "fire them" and "hire" better ones available at that time.
5. At least, you will be assured that in the long run all your managers would not fail everyday in identifying good shepherds - leaving some good sheep with you, instead of all falling down the precipice in the daily "herd mentality".
2. Everyday, there will be a different "herd mentality" orchestrated by a new shepherd, viz. news, events, results, decisions, etc., driving all types of sheep into the market or out of the market, at a consideration.
3. Instead of trying to daily predict the "Shepherd of the Day" yourself, it is best to "hire managers" - by investing in long-term diversified mutual funds - who will do this job for you, either daily or periodically, in a systematic manner through SIPs.
4. Count your "sheep value" through an Annual Performance Review, and if you find your "managers" lagging in identifying "good shepherds" for you that will enrich your sheep value, immediately "fire them" and "hire" better ones available at that time.
5. At least, you will be assured that in the long run all your managers would not fail everyday in identifying good shepherds - leaving some good sheep with you, instead of all falling down the precipice in the daily "herd mentality".