Hi!
Nothing personal. But if I were the person to have asked this question, I would NOT have been satisfied with the answers appearing above. Therefore, here is my attempt to reply :
First and foremost, one needs to follow certain important guidelines, such as :
1. Above 50 years of age, one should NOT invest fresh into any of insurance policies [other than mediclaim on continued basis]
2. One should NOT invest a lumpsum amount of few lac rupees in a single one installment investment.
3. One should keep the amounts scatterd... some in Gold, some in Real Estate, some in insurance for kids [educational and others], some in bank FDs, some in savings account for sudden requirements, and most important, some in Stock markets- Directly and indirectly.
In a way, you are lucky that you have asked this question in almost a right time. Six months ago, any fresh investment would have got corroded as the markets have fallen by 40% or more in certain cases.
For direct investment, you need to study the markets yourself. Do NOT depend on others. Do NOT use any tips from anyone, including your brokers and/or friends. It is your own hard earned money, and you should invest it wisely by choosing correct stocks. This you can do in your leisure time in the evening also. What you should watch is the running strip of various scrips traded on NSE.
Take one good company from each sector. Let's say - Reliance, Infosys, SBI, TISCO, Tata Motors
or Maruti
or Mahinrda-Mahindra, Bujaj Hindustan
or Balrampur Chini, Bharti Airtel
or Reliance communications, ...... make you own list.
Markets are expected to fall a little more. My target for Nifty is around 3235-3300, but I could be wrong. I am no expert. One can watch these companies' individual stock prices and start buying in small lots when Nifty goes to say, 3400-3500 levels. Like for example, Reliance is expected to go back to 1800-1850 level or even below it once again. If you wish to buy 100 shares, buy 10 when price is 1850. If it goes below and is at 1800, buy another 10.... and continue.
Then suddenly, the market may turn upwards and Reliance may jump from 1790 to say 1900.... buy all the balance quantity because then the markets are expected to remain range bound at a level little higher than the lowest, and your average purchase price shall be lesser than the traded price. This is the consolidation period, after which the markets are expected to have an upward leap.
I could be wrong in the Nifty targets, so watch and decide for yourself. Then Just relax.
The Indirect method is through Mutual Funds. Choose different Fund houses and sectors. The "valuresearchonline dot com" site gives you all the details for various mutual funds. Choose wisely.
Again do not go for lumpsum investing. Choose SIP-Systematic Investment Plan, which every fund house offers. Till then keep the money in FDs of lesser duration.
Watch Gold. With US elections round the corner, Gold is expected to fall, even in India, inspite of the festival season. I expect it to go below 11000 again, but I could be wrong. Buy the 1 ounce or 50g gold biscuits that are for investment purposes, so that when they are required to be sold, there is no deduction, and the market rates are applicable for the weight to decide the price of the biscuit.
And whatever you do, keep a very good record of it in your computer, and also get a print-out as ready reconner. Share this info with your kids, so that they are aware, what their mother is doing for their well being.
Sorry for the delay in posting this reply. Saw this message late
Act wisely. Good Luck!
SS