Should one Invest in Share Market?

Should one Invest in Share (Stock) Market?
If you are not good at numbers and don't get time to study about the stock you are buying then one should stay away from share market. At present the volatility of domestic and global share market has shaken the confidence of retail investors. In my view Mutual Funds with good past performance are best to invest in.

Investment in Mutual Funds are good alternative for such investors.There are several mutual funds with good fund managers which have given better returns even when the market was down.

In my view mutual funds with good past performance are best to invest in.

One should select the best mutual fund by deciding few things:
  • Objective of Investment
  • Track record and past performance of the mutual fund.
  • Reputation of the mutual Fund house.
  • Reputation of the Fund Manager.
It is better to invest in diversified equity fund rather than sector fund, because diversified funds have given very good performance as compared to sector funds.

The top performing diversified funds are:
  • Reliance Regular Saving Fund
  • ICICI Pru Infrastructure Fund (Growth)
  • Tata Infrastructure Fund (Growth)
  • DSP-ML India T.I.G.E.R. RP (Growth)
  • Kotak Opportunities Fund
For retail long term investors Mutual Funds are best because they have SIP (Systematic Investment Plan) option which reduce loss in bullish phase, Provide Liquidity (Open Ended Schemes) and Diversity (Portfolio Mix of several Equities). So if you are novice to share market or don't have time to study the Equity market trends (BSE Sensex, NSE Nifty, NASDAQ and other Equity market of the world) and want your hard earned money to grow fast then invest in Mutual Funds.

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