Monday, January 12, 2009

Stock Market not a Smooth Ride

Money is essential part of Human beings to move ahead in his/her life for becoming successful and not everybody in this world born with silver spoon in his mouth and they have to earn Money either by physical hard work or by making base he studied or by putting efforts mentally or by following others plus luck. Every mentioned above category certainly one earn Money except who follow others sometimes not produce desire result as it seek study/research, devotion from a person and in the end he found himself lonely with lose of money, time and negativity which make him so much frustrated that in some cases it take the life of executer .In this category if one has to name then without any extra burden on mind lips will say Stock Market because from distant it appears that it is easy way to earn money by simply investing in the stocks, then wait for time and then one will be on the wad , infect its wrong thinking as stock market is such a sensitive trade where without proper study small investor ( retail investor ) find his hard earned money free fall sinking and example of this recently ever happened in India’s history corporate scam of Satyam Computer Services Limited, Hyderabad when its ex founder and C.E.O. B Ramalinga Raju resign and said from past some years books were showing false entries and there were irregularities which were not real, he take responsibility of this and apology from investor and employees and with his admition on next trading in one day itself its shares lost shine of almost 80 percent as it open on 7th Jan,09 at 179.10 and touch the high 188.70 and low of 30.70 during the days trading and close at 39.95 paisa and today its no more trading in sensex and nifty, but certainly its effect badly retail investor as there hard money sink in jiffy and even there was news that a person commit suicide because of Satyam stock’s worst performance at sensex and current unbelievable price .
To avoid from this situation retail investor need either thorough study to invest in any company or a helper to invest properly as seeing what happen in Satyam now majority of retail investor avoiding to invest in stock market and currently market is moving some where in between 9,000 to 10,000 mark but not long ago it has even cross 20,000 mark. Unfortunately loser of money here was who invested in stock without proper study of company just invested blindly with only tips of friends and relatives. Fall from one year or so in the market investment community no more has top priority for there money to go in Share or Mutual funds. Now a trend is emerging to have help of Portfolio Management Scheme without having knowledge of stock market as Portfolio management Scheme is proving good source to invest in Share market. Well how this work is that having knowledge of share market a portfolio manager is appointed and investor pass on his money to the Manager, and manager while making portfolio of share as per interest of investor invest money and biggest advantage of this for investor is that then he has no need to actively check his portfolio on daily basis. Today lot of investment companies who are already in the business of share market giving this service and they charging plus get some percentage from profit. From distant this look just like Mutual funds but major difference between both is that in mutual funds investor has no choice but in portfolio management scheme investor can ask to manager to have share of his choice. Portfolio management scheme investor will be in direct contact with manager and in your portfolio he will change only as per your wish. Simply one can say that its such a medium that manager on behalf of you act.
Well by shedding some money as service charge and percentage of profit if investor hard earned money is not only safe but will also increase then by controlling his emotions and greed to earn money soon, it’s not a bad option.

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WELCOME n Thanx for yourgoodself's valuable thoughts, certainly for me these words are Gem and will give me direction.........Nartan Gulal