SANJIB BARMAN (WDTM-Micro Enterprises(Accountant)) (48 Points)
14 June 2012Will anybody help me out?
I wanna know how can i believe on any company that it would not cheat me ?
For this purpose what are the documents i should check ?
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DO’s General - Beware of unexpected calls from unknown people introducing quick profit (like money double) schemes. - Doubt the abnormal promises or high returns in short time. - Reject investment proposals which require immediate investment. - Be known by the company you keep (credible promoters) - Seek written information from companies - Check past track record of consistent profits, return etc. - Read small print carefully - Get a professional opinion / expert advice before investment, even at cost - When in doubt, don’t commit - Invest only when you understand the product - Define your objectives – liquidity, returns, risk mitigation, tax planning
Stocks - Stay cool _ Check the prospectus - Check promoter’s track record. - Diversify portfolio to distribute risk - Understand your financial needs - Invest for reasonably long term - Average cost by making regular investments. - Review and churn your portfolio regularly. - Cross verify the company credentials by credit rating.
Private company investments - Invest in RBI registered NBFC’s only - Check scheme approvals - You can go by promoter credentials - Invest on return basis, not on incentives - Question your broker / consultant who is marketing any scheme - No government agency can insure your money if invested with fraudsters / crooks. - Seek company registration - Cross check with regulatory filings DON’Ts.
- Assume you are a good investor - Rely on immediately available investment proposals without studying - Rely blindly on proposals with slogans such as ‘tomorrow will be too late’ or ‘act now’ or ‘golden opportunity’ etc. - Rely on unresearched predictions - Accept hot tips or ramous - Play in grey market - Follow the herd but take your own call - Don’t choose investment based on incentive / commission make investment purely on tax benefit basis - Rush into investment. Investing is not easy. - Try to time the market - Get emotionally attached to investments - Put your all eggs in one basket - Believe the private rankings - Believe in target prices given by analysts - Loose heart in investing |
While investing in stocks is a risky affair as all equity investments are risk prone investments, though they may yield higher returns, one should not get tempted to invest in stocks as it requires study, patience and post investment watch. Many of us are not able to do so. Ignore it, and look for outperforming mutual fund scheme.
If you do not want to invest in equity, you may choose to invest in bank fixed deposits, corporate fixed deposits or bonds. However, they have fixed income in the form in interest which is less risky, being relatively safer.
As a end note, my advice would be invest wisely. It’s your money, no body else will loose or gain but only you.
Regards,
Veeral Gandhi
SANJIB BARMAN
(WDTM-Micro Enterprises(Accountant))
(48 Points)
Replied 14 June 2012
Thanx Sir......................
Is there any website from where i can get all the details of any company?
Dear Sanjib,
Money Control.com is a very excellant website to derive all kinds of information of all companies. You will notice a search engine on the top of it's home page. Just enter the company name and click on its code, that appears automatically. Now, you can access all kinds of information related to this company.
Regards,
Veeral Gandhi
CAclubindia
