Financial year 2020-21 Guidelines

Today is the first day of the financial 2020-21. A general suggestion is that today you can start and incorporate new practices. 1. Note down the fund you have left in your equity account. Please note that do not note it as the amount you have invested. The amount should be the total current value what you are having at present at the current market value. Always remember that you only have that much money in your account what is visible and not what you had invested. 2. Once you have figured that out and made a note of it. Make a projection of how much are you going to invest per month in the coming year. Make sure that you are increasing your investment per month as compared to previous year. Thats how you will build your corpus. 3. If you are a new investor and have still not figured out how to start investing. My only advice would be to just give it a start. Start with a lumpsum amount of say 50k or 1 lakh and then commit a monthly investment of whatever is your incoming cash flow. 4. Once you have done that make sure to divide your capital into 8 parts and pick 8 different stocks and invest equal amounts in each of them. Do not pick the stocks immediately. Rather wait for an opportunity. 5. Under any case do not try to pick more than 8 stocks for a normal portfolio. Also whenever you have 20-25% profit in any stock. Make sure that you are booking that amount immediately. Also keep the loss size limited to maximum 5-7% in one stock. 6. Each of the positions that you put can most likely give that type of return in 1-2 months. Or rather you should pick only those stocks stocks which are capable of giving that kind of return. Since you have to have 8 stocks at any given point of time you can easily get that. Do write to us in case you need further guidance in building your portfolio.