Invest only when the Upside Potential is higher than FD/8%
Hold for as long as the company performs and let compounding do its
work. Sell only if company performance has dropped or it has governance
issues or prices rise so high that the upside potential is very low.
3. How to invest in Mutual and Index Funds successfully?
Hold for as long as the Upside Potential is above FD interest rates.
While the above advice is simple to understand, implementing is not easy unless you have a framework and data that proves these answers.
is designed to enable retail investors take sensible investing decisions for Stocks, Mutual funds and Index funds.
Actions you need to take before investing:
Take life insurance-term plan for 20X your annual salary and health insurance for 5-25 lacs.
Allocate (100-your age) % of your investable surplus to equity. The rest put in FD with SBI/HDFC/ICICI
Don't chase very high returns. Returns of twice the SBI-FD rate eg 12-13% is healthy