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Posted in Community :

Sultans of NSE

 
Started by : Alok Kumar Singh, Sr. Associate, UBS   12 01 2008 10:04:16 +0000
Industry : Investment BankingFunctional Area : Equities(Markets)
Activity:  22 views;  last activity : 07 06 2010 20:18:09 +0000

As such there is news of falling stocks daily on the news, There is a saying that one who is faint hearted shouldn't enter the stock market business, the way the stock market goes up and down he surely will be affected, so what to do in such times of risk with your money which you have invested in the stock market, How will you negotiate the risk with the stock market. How will you diversify your risk such that you don't loose all your money......YOUR views on this.......

 
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1 2 3 4
1 How will you Diversify your risk in Stock Marekt
2 Diversified Portfolio
3 Cap on your losses
4 Financial planner

How will you Diversify your risk in Stock Marekt

idea posted by Binay Kumar Singh Marketing Manager, B.R.Solution

Simple Fund According to Your age One should decide his / her risk Appitide.A 20 year old young boy should invest 80% of the capital in Diversified Equity Mutual Fund or In Pure Equity and 20% in Safe Funds

or In Dedts Funds or Bank F.D.AND 60 years old gentle man should invest 60% in Debts Funds or F.D and 40 % in Equity oriented scheme. There is no Specific theory its varies from person to person ,Its like

how much Chilli do you want.One thing I must add is that NEVER TRY TO JUDGE MARKET SPECIALLY WHEN ITS FALLING IS LIKE CATCHING A FALLING KNIFE with bare hands so don't try to catch it.

In my View If You don't have knowledge about equity market then best way to invest is through Mutual Fund,let the Professional do there job.

Thank You

Binay

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Diversified Portfolio

idea posted by Alok Kumar Singh Sr. Associate, UBS
This is very much important in this business, you should be having stocks of all nature, the defensive stocks and the aggressive stocks which gives you real profit at times and at the same time the nightmares, so having a diversified portfolio is necessary to manage the Risk in the stock market ppl...
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Cap on your losses

idea posted by Ashim Chowdhury Associate, ICICI Securities
Another way to tackle the  risk and to stop the losses is to have a stop loss on every stock at a percentage of the average cost price,  so if there is a stock meltdown like the one which we are having right now, then you can at least be reasonably sure that you have not lost all your money and instead you have put a cap on your losses, and the risk will be far more less......
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Financial planner

idea posted by Satish Pandey Sr. Associate, IL&FS Venture Corporation
according to me a  good financial planner is a must to make sure that you have wider investment avenues than just in the stock market. That helps as that means that you have some amount of money safely parked in investment vehicles on which can fall back on in case of need. That safety cushion gives you some sort of advantage to play with the stock market.
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