How shud i plan saving 50,000 every month.shud it be stocks thru sips or recurring policies of post office.And what cud i avail after 5 years from this saving.
Stock market is a way of electronically sending our money to FIIs. Foriegn Institutional Investers or Free Indian Idiot's money. Markets have crashed and is on a revival path (another fools idea). Around 13000 to 14000 sensex I think the FII have put their money and are waiting. There will be a slight euphoria and when we all have put our money next crash will put index back to 13000 and FII will be net gainers. If you had any idea of stocks you would have already bought maximum stocks in the 13000-13500 time.
Don't be fooled by MF houses either. There are no mathematicians or IIT ians or IIM ians or Magicians employed there. Some say they have people paid to do market study and read company balance sheet. Again the point is Economy and stock market are never linked. Price of a stock is how much people are willing to pay for it. Its driven by sentiments and gut feeling rather than company balance sheets.
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