The Hindu : Metro Plus Coimbatore : A share in the pie

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WORK HARD: INVEST SMARTER With a sensible financial plan Opinion
Business
The investing adage — You can only get poor in a hurry; getting rich takes Sport
time — has found serious takers in the growing number of the young Miscellaneous
salaried individuals. Their buzzwords are `Invest well' and `Allow your Index
investments to grow'. Software professionals, BPO employees, doctors,
housewives, bankers, engineers and businessmen are now keeping aside a
sizeable chunk of their disposable income to buy shares and gain long-term Advts
Classifieds
financial benefits.
Jobs
"Easy access to information and the availability of professional help are Obituary
turning salaried youngsters into part-time investors in shares. They invest
anywhere between 20 and 30 per cent of their monthly income because the
return is pretty high," says Jose. C. Abraham, Managing Director, Fortune
Wealth Management Company, a trading member of NSE.

Follow a blueprint

A Systematic Investment Plan is the key to get started. "Buying a share is

equivalent to sharing a bit of the company's ownership. By investing a
substantial amount every month in a top rated share and by building a good
portfolio, your investment grows. Opt for a sector that is doing well. At
present, along with the IT boom, segments like engineering infrastructure,
telecom, logistics, retailing, capital goods, real estate, banking and power
have also taken off in a big way. Investing in the leader in such segments is
a great way to cash in," José explains.

While sticking to a game plan is important, understanding market trends

and the financial position of companies also matters.

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The Hindu : Metro Plus Coimbatore : A share in the pie

As technical advisor R. Ramya starts talking about the indicators and charts
that help her track the movement of shares, she is flooded with calls
seeking guidance on shares.

Limit the losses

"We get close to 30 calls a day. The minute-by-minute update of the

volume of shares helps guide investors. Some of them go in for intra-day
trading (buying and selling for immediate gains). Options like `stop-loss'
(you buy a share at Rs. 100 and fix stop-loss at Rs. 95) limits the risk
quotient," she adds.

When you start investing early, there is enough time to maximise long-term
returns. N. Dhinakaran, a Master of Foreign Trade student and an investor,
says youngsters begin with small amounts like Rs.10,000 and increase it on
seeing gains.

"When the market is up, one can be sure of 40 per cent return in 12
months. Paying attention to market trends is important to keep track of
your money. For instance, sugar prices have come down in the international
market; so be wary of parking money there," he adds.

Look up the track record of the company, advises engineer-turned investor

S. S. K. Thirukumar.

"Study a company's financial performance in the past decade, its

projections, Earnings Per Share and Profit Earnings Ratio and get an update
on its current financial status," he adds.

Patience pays

Investor N. Ganesh agrees. "There is no gain without pain. The markets can
move up, down or sway sideways — the risk factor is always there. So, you
need to wait and watch to gain realistic profits. But the liquidity is great —
you can dispose it of almost immediately. This way, you have complete
control over your money," he adds.

To stay tuned with market developments, investors also go online. "Articles

on industry trends in business magazines written by experts help in
decision-making too," says housewife S. Rani, who trades short-term shares
in banks and also invests in blue chip companies for long-term benefits.

Keep a watch

"Trends can reverse anytime; so it is better to approach a professional for

your portfolio management. Ten profits can get wiped out in one loss," she
cautions.

S. K. Radhakrishnan, Regional Manager of Geojit Financial Services, says

that in the last five years people have moved on from traditional saving
options to shares. "We also conduct an Investor Education Programme for
college students and corporate houses to guide them on full and part-time
investment in shares," he adds.

Changing mindset

This trend is partly due to the shift in the thought process of youngsters,
says V. S. Pradeep, Vice-President (sales and marketing) of Finerva
Solutions Private Limited, which helps youngsters learn the basics of
personal finance management.

"So far, parents managed the finances of youngsters. Now, youngsters have
placed this trust in professionals," he adds.

With players in the IT segment coming up with ESOPs and IPOs, employees
have realised that they can also have a piece of the share market pie.

"There is no longer any `fear' associated with shares, as people are more
aware and also have huge sums of money at their disposal. So, they are
willing to take risks and handle the ups and downs in the market sensibly.
Another motivating factor is the growing number of youngsters turning
full-time investors. It boosts the confidence level of those wanting to
become part-time investors," he adds.

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