5 points to note when investing in equities for 1st time

Below is the verbatim transcript of Roongta's interview with CNBC-TV18.

Q: If a small investor was to begin investing in the equity market directly, how he should go about doing it. What are the top five-six things that he needs to keep in mind?

A: This is a topic, which is lingering on the minds of all the investors that we meet specially the small investors who have not entered the equity markets as yet. I would like to take one step behind before we get on to how to exactly go about doing it. The first and foremost is that if one has a medical emergency or a complexity, do consult the person who is specialising in the field.

Therefore, my first advice and the first step would be to seek the help of professional who is in the financial field. Second, before taking a plunge into investing in equities, first draw up an asset allocation plan. That will only determine based on one's age or risk profile or time horizon that one have. How much money should exactly go into equities? Once that has been identified, only that portion of money is strictly needs to be allocated to equities.

'S' for Shopping or Saving?

For a new investor to identify stocks; there are couples of things he needs to do a detailed research upon because there are fundamental analysis and technical analysis of a company. Researching on a company is a science in itself. So, I would recommend for a new investor, for a person who just wants to enter into equity, into the stock market to first choose an index exchange-traded funds (ETFs). Index ETFs are listed on stock exchanges.

1 2

Watch Video

Excerpts from Markets and Macros on CNBC-TV18 Watch the full show »

.ftCnbcShare{border-top:#d1d1d1 1px solid; padding:8px;margin-bottom: -27px; margin-top:10px;}

Markets And Macros at 11:00 am

Top Blue Chip Companies To Buy For 2014

Tweet

Share on Tumblr

SHARE . EMAIL

.gD_15nRedN{font:15px/20px Arial;color:#FF0000 !important;text-decoration:none;font-weight:normal;}

Related News

Checklist for women who take financial decisions New mediclalim 2012: Pros & cons 

.gD_15nRed{font:15px/20px Arial;color:#FF0000 !important;text-decoration:none;font-weight:bold;}

.GoogleNewsTitle{font:14px/16px Trebuchet MS,Arial,Helvetica,sans-serif;color:#005066;text-decoration:none;} .GoogleNewsTitle:hover{text-decoration:underline} .GoogleNewsURL{font:12px Trebuchet MS,Arial,Helvetica,sans-serif;color:#000;text-decoration:none;} .GoogleNewsURL:hover{text-decoration:underline} .GoogleNewsTitleLine{font:20px/22px Trebuchet MS,Arial,Helvetica,sans-serif;color:#F01414;text-decoration:none} .GoogleNewsTitleLine:hover{text-decoration:underline} .GoogleNewsLineURL{font:12px family:Trebuchet MS,Arial,Helvetica,sans-serif;color:#000;text-decoration:none} .GoogleNewsLineURL:hover{text-decoration:underline}

Tags: Harshvardhan Roongta, Roongta Securities, invest, investor, exchange-traded funds, ETF, Sensex, Nifty, PPF, SBI

Switch from IT, exporting cos to private banks: JPMorgan

Tata Motors global wholesales down 14% in July

.scroll_hv .panel{width:250px !important; padding:10px 10px 25px !important} #scroll13{width:540px;} .hv_bx{margin-left:-10px;} .tab_data1{padding:0px;}