Equity Markets!

This is something that has fascinated me since childhood. No surprises since it seemed to be the easiest way to make money. But why should u invest in Equity markets where the risks are so high and we have seen investors losing the money?

One rational could be the fact that the inflation is hovering under the 5% mark. Fixed Deposit rates are at an all time low. So FD returns do not cover for the rise in inflation. Last year BSE Sensex gained 83% Can any of the banks beat that?

So with sensex poised to touch the 6000 mark again. Was just wondering what the ppl out here were thinking. What is the prognosis for the future? What are the instruments that ppl follow to track stock markets?

Read an article on how Infosys has created share holder wealth for the investing public
Imagine a retail investor putting in money in the Infy IPO in 1993 at Rs 95 a share getting 100 shares allotted. If he had gone on vanvas and returned back only yesterday these number of shares wld have appreciated to 6400 shares.

9500 Rs -> 3.5 Crores in 11 years!!!

Some of the learnings that i have experienced was
1. Dont look out for penny stocks. Those stocks that are trading at prices less than 10 Rs. You have this big dream that they would go to 100 in a month or so. There is good reason why the stock is trading at sub 10 Rs. Avoid it.
2. Do lots of study before entering the market. But its better if you can say to urself. "Get an online demat account. Here is 5000 Rs. Let me put it into the market. Iam ready for this entire capital getting wiped out. Iam here to learn."
3. Stay invested with blue chips. Infosys, Wipro, SBI, TataMotors, TISCO, Reliance, ONGC to name a few. I know these stocks cost a lot infact out of the reach of retail investors. But see it this way. If the market is gonna pick up which companies are gonna do well. The market leaders ofcourse.
4. IPOs are a very good for beginners cause there is not much downside. In the recent past some of the stars have been: Divi's Labs, Maruti, Biocon, PTC. Well allotment is a matter of luck. So put ur best foot forward.