Are investing in shares beneficial?

Good shares give handsome returns. But never put all your eggs in one basket .

yes but only on delevary basis,with 5 years holding capacity

Researchs have proved that a systematic investment in stocks can result in decent returns above all other instruments available for investing. But for this u should have patience and u should not get swayed by the short term and intraday trading oppurtunities.

I actually would have to disagree with what most of the people said on here, for the reason of not answering the question you had (though some did).

Owning shares has many benefits, and I do mean many.

One of the biggest ones is dividend pay outs. This is where the company pays its share holders a certain percentage per share that they hold. Having great companies with high dividend payouts can lead to huge profits, as you are getting paid just to sit on the stock.

You can then take those dividends and re-invest them, which can also be a great benefit as well.

Two: the use of OPTIONS! I cannot stress this enough either. The major flaw I see is that people dont understand what they can and cannot do in the markets.

So say you own 100 shares of GE. You think its a good company, it pays a high dividend (so you get paid each quarter), and you think its going to continue to do well.

But then it starts to slip. You see some weakness in the stock/market. And sure enough it begins to decline.

If you own the shares, you can SELL COVERED CALLS. I repeat, SELL COVERED CALLS.

This of course is an options play, but it will allow you to continue to hold a great stock (maintaining your tax benefits) while making money on a decline.

If done right, this is a low risk play!

You can even do this if the stock starts to trend sideways!

OOPS! I just told you one way you can make money in an UP, DOWN, and SIDEWAYS tending market.....

Not so difficult of a concept right?

Another benefit is that you can list them as an asset. Should you want to take out a loan or something that requires a financial background check, owning stock can come in handy.

Now Mutual Funds are ok.... If you dont mind paying a pot load of money to a fund manager, trading costs, money management fees and stuff, all for mediocre returns.

Picking a good fund is just as difficult as picking a good stock. It is rather ridiculous. I know many people who own mutual funds and took a huge hit to their portfolios, and STILL HAVE TO PAY THOSE FEES. Over the last year, most mutual funds took it to the chin, yet our companies members (and Im sure other companies as well) made a good profit???? Wait what?? Regular people beat the Funds??

I cannot fathom to this day why so many people hand over their hard earned cash to Mutual Funds. At best, its better than putting it in the bank, I guess...

You are far better off learning to do this yourself. It will require time and effort, but it is well worth it.

Dont let people scare you.

And as far as that B.S. of not trying to time the market, wipe that from your head.

Im going to give you a big head start right now.

Use Fundamental Analysis to find the "what" to invest in.

Use Technical Analysis to find the "when" to get in.

It is true you will more than likely not be able to call the tops and bottoms exactly, but that doesnt mean you cant see them after they have formed. If you can learn to spot these (and other patterns), you will do just fine.

Christian Nago
CEO & Chief Investment Officer
http://www.intrepidtradings.com

Ye,s if you have time on your side to 'sit' on them. If you are planning to invest for the long term (5 + years), now is a great time to buy, with the market down.

Of course. On the theory that a business is always trying to make money and you, as a shareholder, will share in this.
You will notice that a Company is always looking after its shareholders rather than its customers. Like Brit GAs today. It has continually put up its gas prices on the basis that it has to reinvest its profits (LOL haven't they heard of hedging), and yet it reports brilliant profits.

well......most everyone needs to make money to survive.....with things like inflation and taxes, if you don't know how to make the money you've earned work for you, it becomes worth less and less as time passes, meaning you thought you were earning $X and that will not be the case. Hence you want to put your money somewhere, where it can at least not become worth less, like the stock market. But, you don't have to become a stock market expert, just find mutual funds with great long-term performance, ie CGMFX > 24%/yr over last 10 years, remember diversify your investments across some different funds(geography's, sectors, etc...)

If you choose good fundamentals stock, On an avergae we can see 20 to 30% returns per year.

hi,
study the fundamentals of investment from http://vbulls.com/ .
it is beneficial only. you have to follow certain discipline or guidelines. these things are dealt in the website briefly.

http://vbulls.com/

Ofcourse, where else, one can double/ triple his/her money in a year's time, or even less than that.

I certainly think so. I LOVE the excitement of trading!

I do it for several reasons:
1] Due to the fact I have my own trading rules for each trading strategy, I properly plan many trades.

2] Before placing any trade, I have the opportunity to ask others. THEN make my own decision whether I should - or shouldn't - trade that particular stock at that time.

3] Just as others help me, I help others.

4] It allows me the freedom to do some of the things I want.

5] I learn my others' mistakes AND they learn from mine.

6] I meet wonderful people and have the opportunity to exchange trading "war stories": How well - or not-so-well - a trade worked - or didn't.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

Based on all historical data, Stocks have been found to give consistently higher returns than other 'safer' investments.

However, a few things to keep in mind:
>> Unless you are a day trader / experienced, it's always better to invest for the long term. Depending on your objectives, Long Term could be a year or could be 10 years.

>> DON'T try to time the market (that is buy when low and sell when high). NO ONE can time the market accurately and consistently.

>> Do stay in touch with the market and keep yourself abreast of what's happening in the business world. You don't need to get into a deep analysis of fundamentals of companies but definitely need to be in the know of what's happening with the company.

>> If you are new to the stock market it's probably better to invest in Mutual Funds. It gives you the benefit of someone else's expertise and the benefit of diversification (holding shares of multiple companies instead of just one or two).

>> If investing in MFs, it's better to go for an established fund rather than an NFO (New Fund Offer). MF performance can easily be researched on a few good sites including:
http://www.moneycontrol.com/stocksmarketsindia/
http://www.mutualfundsindia.com/

Yes and no.
Reasons for yes:
- you could get lucky and pick a stock that's undervalued, watch it rise in price, then get lucky and sell it at the right time to make a profit
- you could get lucky and buy stocks or mutual funds near the beginning or middle of a bull market and then liquidate near the end of a bull market
- you could buy mutual funds or stocks, hold them for ten or twenty years and maybe make a profit, if you don't mind having large paper losses in the interim
- you could do what your investment adviser says, which would have the same result as the above

Reasons for no:
- no one but company owners know whether their shares are undervalued. even professionals have a hard time figuring it out. company owners do not tell the public when they believe their shares are undervalued. They buy as many as they can first, then tell later.

- you may buy some stocks, see them go up, and think you have a good system. Then you get burned later because it wasn't the system, it was pure luck.

For more info: http://commonsensetrading.googlepages.com

Stay away from shares. If you are desperate to invest in stocks, invest in MFs

investing in shares with observing the market movement is only beneficial. other wise you better invest in mutual funds only..

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