The two different styles of investing in the stock markets.
  • "Be Safe" mechanism: in which we put our money in the blue chip and other big companies, like ITC, SBI, Reliance, ONGC etc which will produces the constant annual returns in the long term (Please ignore the exceptions like the current economic turmoil, which may last of some more time but is not permanent. Long term means over 3-5 years and can be as many as 10 or more years depending on your needs). The income from these companies vary anywhere from 15% to nearly 30% in long term. And mainly, the risk will be lower (25%-50%). Most of the Indian investors choose this method by satisfying with them minimum returns.

  • "Be Aggressive" mechanism: in which we put our money in the small cap and mid cap companies which are having the high risk profile of 50%-90%. These companies will produce the returns of 50%-1000%. The multi-bagger companies are the outcome of only small cap and mid cap companies only. Few of the Indian investors who can bear such a high risk profile will invest in this kind of companies.
Investors who can sustain such risk of up to 75% can choose the possible future Multibagger companies and invest part of their investment. When you invest (I am talking about the investment and not the trading, i.e. the long term investment only) in a company, you should prepare and can sustain the loss of 50% also. But this depends on the time of investment. The right multibagger company can be found only when the markets are in their starting stages and if you invest when the markets are at their peaks, you may loose more money if something goes wrong. So always keep enough money for the future opportunities.

The investment in such companies should be be anywhere in between 40%-75% of the total investment in stocks based on the risk taking nature & ability (Income sources, fixed income, assets etc.) to get the better results and not more than that.

And again, it is better the total investment in the stocks & mutual funds not to cross 75% of the total investment. Rest can be put in safe methods such as Bonds, Fixed deposits etc. This kind of planning investment would help anyone in their future and have the blend of both Be Safe and Be Aggressive returns.

Like it on Facebook, Tweet it or share this article on other bookmarking websites.

Comments (0)

There are no comments posted here yet

Which Cricket you enjoy most?

I like to watch T20.
No answer selected. Please try again.
Please select either existing option or enter your own, however not both.
Please select minimum 0 answer(s) and maximum 3 answer(s).
/polls/sports-and-games/6412-cricket.json?task=poll.vote
6412
radio
[{"id":"22180","title":"Test Match","votes":"12","type":"x","order":"1","pct":15.38,"resources":[]},{"id":"22181","title":"T20","votes":"46","type":"x","order":"2","pct":58.97,"resources":[]},{"id":"22182","title":"One Day [50 overs]","votes":"20","type":"x","order":"3","pct":25.64,"resources":[]}] ["#ff5b00","#4ac0f2","#b80028","#eef66c","#60bb22","#b96a9a","#62c2cc"] ["rgba(255,91,0,0.7)","rgba(74,192,242,0.7)","rgba(184,0,40,0.7)","rgba(238,246,108,0.7)","rgba(96,187,34,0.7)","rgba(185,106,154,0.7)","rgba(98,194,204,0.7)"] 350
bottom 200
No married couple wants to end up getting divorced. It is not like they have planned for it. They try to put up with their partners for as long as they
Due to our modern lifestyle, we feel that digestion related disorders are a common problem. Thus, we neither give importance to them nor seek any help
The bond of marriage brings the two people together. Initially, everything may seem okay and both of them slowly start discovering each other in the journey.
What is Buffettology ? Warren Edward Buffett is an American business tycoon, hailed as the most successful investor of the Twentieth century. Forbes ranked
सामान्य तोर पर जब भी लोग जब भी बाजारों का आकलन मोहित होकर वाह
 Relation between Investor and trader Stock markets are always fluctuating always with many high and lows.At the very fluctuating time many trader
Some times ago very few investment instrument  were available in the market like high-grade bonds and high-grade preferred stock, FDs ,saving
In stock market there are many listed companies and many type of shares, but big question is how to find or select a good companies in very big sea like