BUYING STOCKS NOT SO EASY

The stock market is always an opportunity for increasing returns on investments compared to other segments including real estate. However, investing in stock market is not so easy, including investments in mutual funds. There are many factors –both at macro and micro level, which influences the stock prices on daily basis. Stock index may go up by 3000 points (during a particular period), due to reforms, inclusive policies and other feel good factors. However, prices of all stocks will not go up proportionately. In fact some stock under perform inspite of index moving upwardly. Hence, blind investment,will not give maximum returns on investments. Apart from this, stock prices of companies, including the best managed and having highest corporate governance, are subject to manipulation in the exchanges. If investments in stock were to be so easy task, every one would have been in the business of investing in stocks. More importantly, not every one can make money. Some will lose and some gain. There is a golden saying in stock market investing – whenever buying or selling takes place, some one is committing a mistake. There is nothing like win – win situation.