| Anybody willing to take some risks in order to maximize their returns on investment should invest in equities. Taking calculated risks is not bad. If Dhirubhai Ambani had not taken this risk, Reliance Industries which is India’s most valuable private sector enterprise, would not have seen the light of the day. |
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| So if you know how much risk you can take depending upon your disposable income, expenses, assets and liabilities and have a good advisor to rely on – you should invest in equities. It will be the most rewarding investment if done in the right manner. |
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| There are some aspects like borrowing money (using leverage) to invest in the stock market, which is not suitable for beginners. Beginners using borrowed money should not invest in equities. Borrowed money should be used only when you have attained experience and gained more sophistication as an investor. You can find a good advisor who can help you create a roadmap towards attaining such sophistication. |
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| Another very important pre-requisite is you should be ready to take responsibility in case of investment not going your way. It’s very easy in this market to start blaming your advisor once something goes wrong in a time period. You should just keep learning from your experiences. |
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| Greed, Ego and Fear are 3 enemies of an Investor. You are ready to directly start investing through stock exchanges if you can avoid these 3 emotional enemies. If you can’t then you should invest through a mutual fund. |