02 November, 2010

Stock Buying Strategy for the Aam Aadmi

So you want to buy some shares on the Indian stock markets... but don't have the time or energy to do the full due diligence. But you know that you can beat the market... You want the returns but can't put in the time. You want the thrills but need a safety net... you want the cake, and want to eat it too.

Well... yes you can! Well, I can. Here is what I do: I build my self a safety net of mutual funds, and keep some money on the side for investing in the stock market. I know very well that there is no way I can find the time to fully research the stocks I should be buying, so I widen my safety net as much as possible. The bulk of my money goes into mutual funds, and I have set aside a small amount to play around with, to get the thrills.

This strategy gives you a nice safety net where your investments can grow in the hands of professionals, and at the same time gives you an opportunity to 'play the market' and pit yourself against the professionals. And by the way, I see no reason why you shouldn't be beating the professionals.

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