While investing money in the stock market, what all things should be considered?
The first mistake to avoid is to assume that the cheapest way to enter this market is through initial public offers.
Says Gaurav Mashruwala, a Mumbai-based financial planner: "Many people say that the market is too expensive and putting money in an IPO would be cheaper. That is a wrong strategy. Companies just getting listed are more risky than established blue-chips."
The safest way to enter the market is by investing in large companies, ideally those that are part of the market index.
Once you gain some experience, you can diversify. Even then, it's better to stick to well-known players. Try and get research reports from reputed brokers ...more