Advice for investment to a beginner in Market

Thank you sir.... Currently i am thinking to choose only top 5 sectors and give them equal weightage 20% each...... Is this a gud idea???

 

Decide on your time horizon , then invest in few quality stocks then slowly diversify I may add this is really a good time to pick some high quality stocks cheap for e.g. icici ramco cements idea tata global ongc bhel pnb canara bank ..this no recommendation just a pointer

 

@Beginnner Yes you can. If you have equal conviction in all of those sectors. For eg. A lot of people are heavily betting on financial sector stocks, some on pharma, some on infra etc. so they might have 30-50% weightage in these sectors also. By investing 20% in each you reduce the risk, but then low risk generally might also mean lower returns. But its better than no return (which happens sometimes if you pick stocks wrongly )

 

thnxx..

 

thnx....

 

for beginner always go for mutual funds if you want to get a profit of 5% more than bank interest, stock market is not for common man, if you have spare money, time and want to take risk then you can invest otherwise stay away. The so called now blue chip company may become black chip in next 3-5 years and some of the todays black chip company may become blue chip in next 3-5 years.