I've 10000 rs. in hand and i don't know 'ABC's' of shares but i wanna invest how should i proceed?

No problem that you dont know nothing about Investing. I am glad that you are asking these questions now, and trying to learn. Jumping into stocks straightaway is not advisable, but you can always start with PPFs & mutual funds, see how you money grows slowly, how the power of compounding makes your money multiply! Then if you want to dig deeper into stock investing, fine. Till then, you should consider the following:

There is nothing like starting early, in your investing life and use the power of compounding to your advantage. To understand power of compounding, consider this excellent article at http://www.valueresearchonline.com/story/h2_storyView.asp?str=4007

Next, you can invest in a mix of the following strategies, depending on your investing risk profile, as indicated below. Invest only those funds that you do not need. Get in the habit of saving 30-35% of your salary regularly. Create an emergency fund, roughly equal to 4-6 months of regular monthly expenses. Once this is covered, you may have funds that you will not need say for next 3-5 years for regular or emergency expenses. Use these funds to invest wisely. You need to remain invested for the long term, since you want capital growth.

Conservative Risk Profile (you seem to be of this type; someone who wants his principle to be secure and is looking for a decent growth over the long term)

1. PPF (Public Provident Fund) - account can be opened with any State Bank of India branch. This gives you a compounded 8% return per year, is currently tax free, and is the safest instrument available. Invest 50% of sparable funds in that

2. A Balance fund like HDFC Prudence Fund - This Mutual Fund invests in both equity (65%) and debt (35%) instruments. This is one of the safest funds with a great track record of over 14 years, and has been giving a compounding return of around 20-25% per year. This fund has one important virtue: it manages to lose less than the category average in periods of downside. Couple this with its tendency to top charts & you get a safe & sure fund in HDFC Prudence. Invest 30% of the funds in HDPC Prudence.
check out HDFC Prudence fund analysis at
http://www.valueresearchonline.com/funds/fundanalysis.asp?schemecode=600

3. Equity Diversified MF -like SBI Magnum Contra, Reliance Growth.
These are funds having a very good long term record in delivering great returns with low to average risk. They have figured among the top fund ratings for a very long time. Invest the balance 20% in funds like these
Check out more on the top rated funds at http://www.valueresearchonline.com/toprated.asp

Moderate Risk Profile (someone who can take a little more risk with some of his money)
PPF -40%; HDFC Prudence -30%; SBI Contra or Reliance Growth fund -30%

Aggressive Risk Profile (someone who can take higher risks with some of his money)
PPF-20%; HDFC Prudence -30%; SBI Contra or Reliance Growth - 50%

The one thing that you should do is LEARN more.

If stockbrokers get wind that you don't know squat then they will take advantage of you so quick and you wont know until it's too late.

Brush up on your share knowledge and if in doubt play conservatively.

Heres is a very useful, honest resource that can point you in a better direction, after you read it then decide what is right for you:

http://www.thesolutionwebsite.com/50-financial-tips.html

You want to invest for short term or long term.
For short term rs.10000 is penny amount and u should not enter in stock market but if u have long term view u should invest in baking sector or metals i.e in icici bank,allahabad bank ,ifci,facor alloys,facor steels,tata steel etc.

Try fixed deposit schemes for starters. The equivalent of that in the US is CDs
check out
http://www.financecd.blogspot.com

Someone once said that when a man with experience meets a man with money, the man with experience ends up with the money, and the man with the money gains the experience.

So be wary when you invest. Best to learn everything there is to know about what you want to get yourself into. After reading everything about it, open a virtual trading account. When demo trading, you want to develop your own investing method--knowing when to invest and when not to invest. You learn this in demo trading without losing your money.

When you are able to demo trade and show profits three months in a row, then can you open a live account, but only with money you can afford to lose.

Hope this helps!
http://jsforex.blogspot.com

if u really wanna invest...then go for the big companies like INTEL, ACC, TATA CHEMICALS, SONY for secure investment.
In these companies chances of loss are quite small..and moreover these always head toward a big profit and can help u reach ur good investment output.

Try Subah Sawere company.It invests Rs.13140 and benefits Rs.26 Lakhs.

You should always invest in Large Cap Blue chip companies like Infosys, L&T, SBI, Reliance etc.
In this way your risk exposure will be reduced considerably.

Look at this good tutorial here :

Invest in mutual funds after having PAN, bank account etc.

I don't know how many dollars that amount is, but if you're a beginnner you should start with something simple that you understand. You should start by researching high-interest savings accounts at banks in your area.

If you want to move beyond that, perhaps look at bonds. Beyond this, you need to do some more reading. Get a basic "Investing For Dummies" book and start there first.

Good luck!

MoneyEnergy
http://www.getmoneyenergy.com

Learn to read accounts and find some cheap companies and hold them till you get a good return. That is a very safe bet .

Then, you can proceed to use other investment techniques .

http://www.moneycontrol.com is a lovely site which will give you much information on any stock . All the Best !

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