Suggestion For Investing Newbie With Money To Invest

Hi all

I am looking to invest a bit of my savings into whatever could bring me good returns (I am optimistic about getting 15% - 20% annually). But I have little knowledge or ability to grasp all the jargons in the financial domain to make up a decision on the best investment opportunities.

For a guy as this, what would you suggest - do you think putting my money into stock trading companies like say Karvy, 5 paisa or Sharekhan (so that they will invest my money into various segments as they see fit ) the best way to go?

If so, I would love a review of which of these companies to go - based on the historic returns they offer. If not, do you have an alternate suggestion? I am also looking at probably buying a property from an investment perspective alone in one of the growing tier-2 cities or maybe buy gold when the price drops a bit.

Sorry for so many questions

Hello Ravi,

Thanks for your answers. Well, I wasn't really sure how much I should be targeting as far as returns are concerned. 15-20% was just a conservative target. I am curious if, given the way you show the market has grown, giving my money to the broking company could realistically get me much more returns.

I don't mind the risks - My plan is to start low - say 25,000-50,000 and wait to recover that money and then once I recover that put additional money and keep growing. That way I see myself get more returns that these companies can offer while keeping my own risks low.

Hi Ravi

Thanks a lot. I did confuse brokering services to a professional portfolio manager - thanks for clearing it up. I just finished a bit of my own research on PMS (Portfolio Manager services) and you are right - they seem to be targeted at HNIs and are mostly unavailable for small time investors. The minimum investment although at Sharekhan, AngelBroking,etc. appear to have come down to 5 Lakhs - much less compared to the earlier 1C; still too high for a newbie testing the waters.

-Anand

Hello Ravi,

Thanks for reply. One thing you mentioned is that investing using SIP but from last year I have invested in MF and so far I have a loss of 10 - 15 %. I had selected HDFC top 200. SBI Banking fund and few others.

My question here is that how to decide which mutual fund to select and when to switch?

Also regarding PMS service also I see one of my friend started it with HDFC and he ended up with around 15% losses + 3 - 4 % annual charges( brokerage + PMS charges). There is lock in period of 3 years there. penalty of 3 % in case of early exit? They say that you should stay in market for atleast 3 years to have a good returns.
I was just thinking to go for PMS but I did not find that also as good option.

Hence I am bit confused. For your information I have full time job and I can devote time in weekend.

Can you please suggest a plan or best way forward ?

Also any suggestion to training/books/study material ?

Thanks.

Thanks Ravi.

May I ask what kind of chart and indicators do you use for TA?

I do have basic knowledge about candle Stick and I use with it MACD but say 50 - 60 % my predictions are good. I am not sure whether I am missing any important aspect here.

currently I am also working as analyst in banking domain but not in investment domain. My company do have a investment banking department. Will it be beneficial to join that department or self studies will be good option ?

I would also like to go for option1 but do not you think that 2- 3 years time will be quite long period and I am afraid that I will not make best use of my savings. Indeed there is risk of loosing all that money but is there any way to increase probability of a hit by shot in dark?

Thanks.

Regards
CJ

Thanks.

Regards
CJ