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Topic : Post Budget investment strategy
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Finance & Accounts

 

Should investors go for big fishes or small ones?

Created by : Rashmi Patil, Financial services  | 03 02 2010 14:36:56 +0000
Industry : Investment BankingFunctional Area : India(Markets)
Keywords : investment sensex. market share
Activity:  178 views;  last activity : 07 06 2010 20:18:09 +0000

There are two ways for an investor to gain from the Budget proposals. The most common strategy is to pick up sectors or a group of companies most likely to shine from various Budget proposals. Every Budget has its favourites in terms of tax proposals, sops and budgetary allocation. This tilts the playing field in favour of certain companies. The investor can juice-up his returns by betting on these stocks. And like every year, the Budget proposals for FY10-11 are likely to benefit some sectors and may hurt others.

So for investors, the biggest issue  was India’s rising deficit. And thankfully, FM delivered on this count despite all odds. A lot will, however, depended on the credibility of the Budget projections.

So, should the investors go for big fishes or small fishes, or both? Please Comment....

  
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yes, the big ones are on the  move up on the ladder since the push on power and infra can be matched by them. Moreover, we expect the collabortion of foreign entities in these sectors thereby  ensuring influx of huge funds
By Ravichandar S, investment  03 05 2010 10:17:28 +0000
 
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Before asking which stock I should invest, ask why you should invest in stocks? The real question should be, Why must I invest?" There is no guarantee that the world will operate in the future as it does today. True that accumulating wealth through stock is to invest in the most efficient way known in modern history. Investing in stocks now for the future provides a cushion when preparing for the unknown world say 5 years from now.

There are practical concerns, however, that should be met before investing in stocks. For example, you could increase your rate of saving by reducing the rate of spending. Credit card debt, high interest rate debt, and revolving debt is a detriment to stock investing. Whether it is a big or small, investing in stocks early in life allows for greater amounts of capital gains and wealth to be reinvested and to grow. Compounding stock wealth to buy more stock is a key to wealth creation.
By Soorain Vahie, Freelancer, Consulting  03 03 2010 19:55:08 +0000
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It depends on what type of investors are. There could be small investors and also large investors. Small investors can prefer small stocks. The risk in these kind of stocks is also smaller.

However there is some risk also associated in big stocks in keeping for long term as seen in the last year. he stocks which were in the range of 5000+ are now trading at 1000+. Hence investors need to check the risk they can take and trade in big or small stocks.
By Rachamadugu Pramod, Business Analyst, ICICI Bank Ltd  | 03 06 2010 03:15:30 +0000
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I think investors should go for  big fishes as the prevailing market conditions project a big opportunity of growth. 2010 could prove a profitable year for big firms, but growth could be at a medium pace. Investors should opt for a long term investment to reap higher margins in their profits.
By Rashmi Patil, Financial services  | 03 02 2010 14:39:31 +0000
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No, I don't think that investing completely on big firms would be a good idea. Because buget 2010 has opened a larger scope for mid-cap companies & these companies have graeter potential to grow than their big brothers. My advice would be a mixed portfolio which should contain both big & small firms.

This will reduce the risks involved & help in maximising profits.
By Swati Raut, Product Manager, Aviva  | 03 03 2010 08:00:38 +0000
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