Investment Strategies in 2008 !

I feel 2007 was very good year for Investments in Indian Stock Market. Mutual Funds rocked as usual. If you bought good stocks, they all benefited from the Bull run which was too good in 2007.

Looking back at 2007, specially considering the mutual funds. In my personal opinion one can apply this simple strategy to maximize gains or invest wisely in 2008. This are my strategies to simply life in 2008 !

• Do not invest in more than 5 Funds of your choice based on ratings from http://www.valueresearchonline.com
• Do not invest in NFOs ..Its not worth in long term even though it looks great sometimes - e.g. Reliance Equity
• Do not play short term in Mutual Funds. Keep at least for 2-3 years
• Do not sell for profits, sell only when you have your objective met e.g. Planned selling only for a objective
• Do not invest in Equity IPO's.
  
• Many will disagree with me but for a small investor investing somewhere between 50k to 1 lacs, its simply not worth the time and money. e.g. Investing 1 Lac in IPO, getting alloted only 10k worth of stocks, money locked for more than 1-2 months. Refunds are no managed well sometimes. e.g. For CENTRAL BANK IPO in 2007 for many investors, the registrar issuesed a cheque via Speed Post for the refund money:)
• Invest regularly using SIP method
• Invest in bulk in the same funds when you feel market has come down a lot(benchmark of MF NAV's need to be kept for that)

My favorite Mutual Funds

• Fidelity Equity
• HDFC Equity
• Reliance Vision or Growth
• Magnum Contra
• HDFC Prudence
  

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