In a life full of abundance, it has been become increasingly difficult to make the right decision on the right investment at the right price and right time. There are a plethora of choices that plague the investor’s decision because you don’t know which is good for you. So essentially when it comes to investing you can “go the whole hog” on FD, bonds, Gold and to equities. The challenge is that each of them has many shades of variance.
So, how do you search for “the needle in the haystack”. Difficult isn’t it?
Let’s start the focus on Equity at this stage and figure out what’s in it for you. Who can invest in Equity?
Questions on Equity Investing
Can you accept the price fluctuation in the stocks or MF that you buy?
· If market tanks will you add investment?
· Can you stay for at least 5-7 years
· Can you stop listening to media, newspaper, and friends on investment ideas after you start investing through an advisor
If your answer is “Yes” to all the below questions then it means you can start your investment in Equity. If you are a freshman to Equity, then start with Index or ETF and open a De-mat account to enjoy a host of the facility.
Who could invest in Funds or ETF?
Anybody can invest and it can suit long-term, medium and short-term investors. There are various products that can suit investors based on investment duration. ETF has more advantages than Index Fund
You can start with ETF or Index. However, ETF has few advantages over Index if you are looking to trade in markets
ETF‘s are traded in the market through the normal trading terminal of the exchange. Traders who have a trading account will have to do nothing to start savings in ETF.
Once you are convinced then the process is simple. Select the symbol for the ETF listed in the exchange. Some of the ETF traded in the market is tabulated for your reference.
|Reliance ETF NIFTY BeES||NIFTYBEES||NIFTY 50||28-Dec-01|
|Kotak NIFTY ETF||KOTAKNIFTY||NIFTY 50||02-Feb-10|
|CPSE ETF||CPSEETF||NIFTY CPSE||28-Mar-14|
|Kotak Banking ETF||KOTAKBKETF||NIFTY Bank||04-Dec-14|
|SBI ETF NIFTY Junior||SETFNIFJR||NIFTY Next 50||20-Mar-15|
|SBI ETF NIFTY||SETFNIFTY||NIFTY 50||23-Jul-15|
|BHARAT 22 ETF||BHARATIWIN||S&P BSE BHARAT 22||28-Nov-17|
How to Invest in ETF:
If you have a trading account, then buy ETF. You can choose to do a lump sum investment (any amount you can choose from 5k onwards). If it comes to monthly SIP, you can do a monthly SIP on ETF (will be made available soon) or simply buy an Index Fund to start the SIP on paperless mode.
Plan to save you profits into small SIP or lump sum investment into mutual funds. This will ensure that you keep taking some profits off the table that will serve as a hedge and at the same time, it will not be away from equity as you save in SIP or ETF