Get smart with a Diverse and Intuitive Investment Portfolio

 
KOLKATA, India - Aug. 2, 2014 - PRLog -- Think lucrative investment. Think stocks. It’s as simple as that. There is no better way of creating wealth than rolling your money in the stock markets. The share market can be christened the Holy Grail of the cash rich. But then making money from stocks is not a piece of cake. The instinct, technical know-how, risk appetite and market experience of an investor can make all the difference between disastrous losses and windfall gains. And the first step to upping your chances is to make a diverse and intuitive investment portfolio.

Some share market tips are-

1.Diversify- Don’t invest more than a tenth of your capital in a single stock. This simple step will ensure your immunity to crippling losses. You will not lose your money in one go. In investment jargon, it is called diversification. The idea is to choose a large number of investment types, a variety of companies and different sectors.


2.Think Index funds- Index funds try to match market performance by carrying a variety of stocks that are representative of the performance of a particular stock index. These funds are a stable investment opportunity and offer lower fees due to a lower number of transactions. These lower risk assets are great for an investor’s portfolio.

3.Consider mutual funds- Experts opine that newbie investors should steer clear of individual stocks because of the volatility and unpredictability. Low cost mutual funds are a safer bet as they track a large group of stocks.

4.Get defensive- When investing in stock markets, use defensive stocks as a safety net. An investment portfolio which parks its funds on defensive stocks can guard itself well against the plunge witnessed during volatile periods. These stocks are known as defensives because through repeated periods of highs and lows in share markets, these particular stocks have been observed to give a stable performance. These stocks deliver a satisfactory performance and give steady returns because sectors like IT, healthcare and consumer goods are always in demand.

5.Make informed decisions- Invest in a sector or company that you have knowledge about. When making investment decisions, knowledge is power. Do not hesitate to pour over their financial statements and quarterly reports. Keep yourself informed. Don’t shy away from the number crunching as it might just help you make the 24 carat golden decision.

6.Follow your instincts, not the crowd- The herd mentality is not always a good option when trading in stocks. Don’t fall for any sort of hype without evaluating the pros and cons yourself first. The Dotcom bubble landed a lot of investors in trouble because they fell for the hype and it backfired.

7.Choose the undervalued, not the damaged- And last but not the least, invest in stocks that are undervalued but steer clear of damaged companies. Invest in companies that have a small downturn but not a permanent loss of value.

7Ps, a trademark product of Dynamic Levels propels you in the right direction so that you can make considerable headway in the Indian stock markets, riding the highs and tiding over the lows. The product comes in the form of well-researched, user-friendly reports that conducts a trend analysis and evaluates the financial health of a company, thereby determining the true potential of a stock. Your stock selection worries are taken care of as 7Ps takes on the role of a mentor, counsel and guide on your quest to getting wealthy.

Visit https://www.dynamiclevels.com/ for details.

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