Previously I used to invest in primary & secondary stock market. Primary stock market is that where any company is making a new listing by opening IPO (Initial Public Offering) and secondary market is that where you buy or sell existing listed stocks. Currently I am not trading any stock in primary or secondary market. I had not good experience with the investing directly in stock market. I was also following the experts on the business channel but they are clearly frauds. When market is going up then they are saying market is good stay invested but as soon as market starts correcting, they suddenly changes their view and say market is risky book your profit.
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I had earned the money in some stock and loss in some, I still have some stocks which is at ~10% of my purchasing price.
Currently I am investing in MFs through SIP (Systematic Investment Plan). In SIP, you invest some predefined amount (specified by you) on monthly basis. I have demat account in ICICIDirect where I do all the transactions related to MF. You have to start the SIP once then it will automatically invest amount monthly on your selected MFs. For the beginners Mutual Funds are the best option to invest in stock market. By doing SIP, you can get benefit of the ups & downs of the stock market and main thing is that you don't need to track your investment on daily or monthly basis. Choose 2 or 3 MFs of different categories as mentioned below and start SIP.
Below are the categories:
1. Bluechip fund: This MFs invest in large cap companies like L&T, SBI, Infosys etc. So this is very much reliable and low or moderate risk.
2. Small & Mid cap or Emerging companies: This MFs invest in small & mid cap companies or emerging companies. This is high risk high return.
Benefit of investing in MFs is that if you sell the MF after holding it one year then you don't need to pay any income tax. You have to pay 15% short term capital gain if you sell it before 1 year. So if your risk appetite is moderate then it would be good to invest in MFs for good return without much risk. For MFs, stay invested for at least 3 years to get good returns. I usually refer moneycontrol to check the rating of MFs.