General Help!

Hello Friends!

I am entirely new to stock trading and am learning rather reading at this moment a lot from this forum. I am now understanding the basic keywords. The article by Saint "Teach a man to fish......" is excellent, though I need to read several times to grasp the entire concept.

At this point, I have 25K lying idle and would like to invest in "safe" stocks. By safe, I mean those funds who have excellent track record over years. I truly understand the risk involved since the so called "safe" stocks can be 'unsafe' overnite like satyam. I request some of you to please mention
3-5 good stocks so that i can allocate the 25K equally among these funds. I am prepared to wait and not necessarily look for short time profits (though I wont deny selling it if there is a huge jump after important events like budget).

I have been seeing CNBC off late to keep myself informed. What I gathered over there in last couple of days is one key word of 'infrastructure'. Seems lot of people are expecting thrust in this area and many are betting in this field. If this is correct, I would like to please indicate good infrastructure stocks as well apart from any other budget oriented stocks.

I have opened demat account in Geojit and buying and selling as per my wish should not be a problem.

Thanks in advance

Jeet

Hi
It is really good to invest in infrastructure stocks. I would ask you to invest in DLF and GMR Infrs. These two companies have strong fundamentals and many ongoing projects in Hand. Definetly they will reach their highs in a period of 6 to 12 months.

Thank you so much Karthik....

Any other guidance from other experts please!

Thx

Jeet

Hi,
To add to Karthik's list of good infra cos. U can also consider IVRCL, IRB Infra HCC & Patel Engineering.

If you are new to stock trading it is probably unwise to 'throw' your 25k at 3-5 stocks. How are you going to evaluate them, and decide on your entry and exit points. How are you going to estimate their future value, whether 6 month or 1 year?

Infrastructure is v. important in India's growing economy. Road, bridges, airports, shopping malls, apartments etc etc have to be built, rebuilt and expanded.

Remember you're taxed on short term stock gains but not on stock you've held for over 1 year (capital gains tax).

I don't make recommendations, but would suggest you look at a Mutual Fund, specifically one for infrastructure. They evaluate all the infrastructure stocks for you and you will spread your 25k amongst probably greater than 5 stocks. Also many Mutual Funds allow you to link to your bank/dmat account and you can buy more units or redeem (sell) units as you like. Again this is a suggestion not a recommendation or advice. I would also urge you to look at longer term investment, looking at 3-5 years to see reasonable returns.

What I would recommend is papertrading any and all recommendations and see how you do without risking any money at all!!

All the best, happy, safe and profitable trading.
Class

Thank you so much lokz.. I appreciate your help

Jeet

Larsen & Toubro ,Reliance Infra,Lanco Infratech,Punj Lloyd,Mundra Port,Gmr Infra,IVRCL ,IDFC etc...the list is too long Construction,Power,Roads,Airports,Railways,Ports,Engineering and maybe even Hotels can be considered Infra...do a stock by stock analysis and then take a decision...

Thank you so much Class... your comments really make sense. I appreciate the pain taken to explain in such a classy manner...

The first thing which occured in Mutual Fund is DSPL TIGER. I hope to plant some money in it....

Thanks

Jeet

Thank you so much Class... your comments really make sense. I appreciate the pain taken to explain in such a classy manner...

The first thing which occured in Mutual Fund is DSPL TIGER. I hope to plant some money in it....

Thanks

Jeet

Very good point, we should also consider tax factor.