Fresher Needs helps to Invest Money.

[bankbars]

Hellow there,

As this forum consists of highly expertise professionals in to the field of Investments and Banking.i also want to make more money of my earnings.
i am new to this field,i don't know from where to start and how to carry on.whether to invest my money into the banks or to invest in the shares.
i heard now-a-days Share markets are down, so it is favorable to buy some shares.
Anybody like to Share their views and Ideas is most welcome thus it will help me to start on investing.

[wiseradvisor]

I would suggest you not to buy shares now as you know about the current market. Keep your money with you in your bank account, wait for the market to be stable and then go for buying shares.

[sweeps]

I would suggest you not to buy shares now as you know about the current market. Keep your money with you in your bank account, wait for the market to be stable and then go for buying shares.

How does one know the market is "stable"? After it's gone up 20% and you've missed out on those early gains?

[kork13]

I would suggest you not to buy shares now as you know about the current market. Keep your money with you in your bank account, wait for the market to be stable and then go for buying shares.

Seriously?? Sorry, can't agree to any of this. This is terrible investing advice. Translation of the above: "When stocks are low, don't buy them. Wait until they're expensive again, THEN buy." Sorry chap, bad idea.

Bankbars, for just starting into investing, look into some index mutual funds, such as an S&P 500 index fund. Buy into 1-3 diversified index funds. That will at least start you into the market while everything is undervalued. Keep adding some money each month to that/those MF's, and over time as you're able to learn more, you can look into expanding into a more complex but potentially better-yielding portfolio. You can stick to MF's (most people do), or down the road you can look at individual stocks. Just keep in mind that this entire process (especially getting into individual stocks) requires time and research to set yourself up properly with a fair chance of success.

[bankbars]

Starting to Invest

Hi there,

I am thankful to all viewers who posted me the post.i am familiar with the term Mutual fund, but didn't got the 1-3 diversified index funds.
what is this Index fund.is the Index fund and Mutual funds are same or it's different.

Thanks and Regards

[Car Insurance Guy]

Bankbars - there are all sorts of mutual funds out there. They're collections of stocks, bonds, or other securities that are actively managed by a portfolio manager. Mutual funds can track sectors, styles, regions, currencies, or be more broad following an index. There are fees and sometimes sales loads associated with mutual funds. For better definitions, there's always Google. I tend to go back to Investopedia dot com as well.

Index funds are mutual funds or exchange traded funds (ETFs) that track a particular index. Example: SPY tracks the S&P 500 index. I like ETFs over mutual funds for a variety of reasons. They seem to be overtaking their predecessors in volume and popularity.

[bankbars]

how long will it take for stock market to improve ?

hi car insurance guy,

i am very much thankful for the information that you provided. as you know today stock market gown down to 8937 points. what are your expectation.for how long do you think the market will behave like this.

any replies or suggestions are most welcome

Regards.

[zetta]

Here are books that I would recommend that you read to learn about investing (and I would read them in the order shown):

1. All Your Worth (getting your basic financial picture in order so you have money available to invest)
2. The Complete Idiot's Guide to Getting Rich (helps with goal setting)
3. Bogleheads Guide to Investing (explains mutual funds and the indexing strategy)
4. The Intelligent Asset Allocator (how to structure your portfolio)
5. Morningstar Guide to Mutual Funds (how to analyze and pick funds)

[disneysteve]

what are your expectation.for how long do you think the market will behave like this.

Nobody knows the answers to these questions. They are unknowable. That's why market timing doesn't work. Time in the market rather than market timing is what matters. Now is a great time to be starting out investing because stocks are down dramatically from their highs. Invest in a well-diversified portfolio and add to it regularly through an automatic investment plan and you will benefit from the eventual recovery, whether it happens next month or 6 months from now or a year from now. If you wait until the recovery happens before investing, you're too late.

[tripods68]

.DJI - Dow Jones Industrial Average - Google Finance

DOW is setting where we were back in early 2003. Investors should start investing using the "dollar-cost-averaging" especially when prices are these low. Over time whatever you bought (ie, individual stocks, Index, ETFs) value should go up.

[bankbars]

hi disneysteve,

Thanks for the replies.most of them are suggesting to invest but we also have to be very concerned about major giants collapsing. so what you suggest about it.i think it's better to let the market touch ground and then rise. what are your strategy.

Regards.

[kork13]

You won't know when it has "touched ground" (in other words, "reached the bottom") until you're already well past it. The best strategy IMO is to buy in on a regular basis. Like for me, I'm investing $150 every 2 weeks into my mutual funds. That way, I'm getting into the market while it is generally low. It's dollar cost averaging, and for the average investor, it's the safest and most practical way to invest.

[disneysteve]

You won't know when it has "touched ground" (in other words, "reached the bottom") until you're already well past it. The best strategy IMO is to buy in on a regular basis. Like for me, I'm investing $150 every 2 weeks into my mutual funds. That way, I'm getting into the market while it is generally low. It's dollar cost averaging, and for the average investor, it's the safest and most practical way to invest.

I agree 100%. I do the same. $200/mo into one fund. $300/mo into 529 plan. Biweekly contributions to 2 other funds in my wife's 401k. We haven't stopped investing for a moment.

[Broken Arrow]

most of them are suggesting to invest but we also have to be very concerned about major giants collapsing. so what you suggest about it.i think it's better to let the market touch ground and then rise. what are your strategy.

I'm not Steve, but I do have a one word answer for you: Diversification.

That way, a major company collapse won't impact your money too severely.

Steve has already warned the dangers of market timing, and I don't know how much clearer that can be. You see, market timing would actually work IF we can actually figure out where the bottom is. But that's a very big IF. Certainly, plenty of people still try to look for it, but in the end, no one can predict the future.

I think it's easier to just diversify and keep dollar-cost averaging....

Finally, I think Zetta is pointing you towards excellent resources that will help get you well on your way towards smart investing. I hope that her recommendations do not go unnoticed.

[bankbars]

Hi there,

i am very much thankful for all the suggestions that i am getting.
as dollar Cost averaging is the best way to know the risk associated while making large purchase. i am thankful to Zeta as well for provide the great reference book. but in this internet evolution i.e. faster generation , i would like go for online resources. is there any online resource that can help me out.

Regards.