How not to lose money in the Indian stock market?
Let me begin by saying I'm not a financial advisor. However, these are some tips that worked for me and I see no reason why it will not work for you. The first rule is to invest money that you will not need in the short term i.e., at a minimum within the next one year. Instead of investing in individual shares, please invest in an equity mutual fund. Depending upon your risk propensity, you can go for a large cap fund (lower risk - lower returns), multi cap fund or a mid /small cap fund(higher risk - higher returns). The top performing funds in each of these categories are listed in websites such as moneycontrol and valueresearch. Investing in a mutual fund diversifies the risk as your investment is spread across shares of a number of companies. Also, the mutual fund is managed by a professional fund manager. Never time the market. A systematic way of creating wealth is to invest systematically on a periodical basis preferably monthly. This is commonly known as Systematic In...