My whole quantity is 40,000 rupees and my portfolio contains some shares which I bought at very excessive value resembling Piramal at Rs1,900, Sure Financial institution at Rs18, Wabag at Rs280 and Infibeam at Rs44. How can I handle to beat such losses and make my portfolio to achieve extra? And any solutions on how can I make an entry in bonds, debt funds/mutual funds at a really newbie stage?

Yash Kapoor

Reply by Harshad Chetanwala, co founder, MyWealthGrowth.com

Your plans to know completely different funding choices and investing in them on the age of 21 may be very promising. The truth that you intend to start out investing at younger age offers you the benefit of permitting adequate time to your investments to develop. Coming to your current funding in direct equities, your buy value for the businesses are round a 52-week excessive. One wants time, proper data and sources on common foundation to take a position and handle a portfolio of direct equities. Some analysis in regards to the firm may also help you determine if the inventory is sweet, accessible at cheap valuations and if it has good progress potential. It will assist you take extra knowledgeable resolution and cut back the potential for a loss in future.

Alternatively, contemplate mutual funds to put money into completely different asset lessons like equities, debt, cash market and gold as properly. As you’re beginning together with your funding, mutual funds may be the best instrument to start with. As a substitute of investing in direct equities, you’ll be able to have a look at UTI or HDFC Nifty Index Fund together with Mirae Asset Giant Cap Fund to start with, the place your cash will get invested in well-established giant corporations by way of these funds. The danger in these funds is much less in comparison with direct equities as mutual funds are extra diversified and managed by skilled fund managers.

Keep away from investing in Mid Cap, Small Cap, Sectoral and Thematic funds at this stage as they’re extra unstable and have greater danger. Equities are meant for long run the place your holding interval must be greater than 5 years. If you’re seeking to make investments for brief time period, i.e. lower than 1 12 months, then you’ll be able to put money into liquid or ultra-short length funds the place the danger is low and the returns may be near financial savings account or fastened deposits.