Question

As fund manager and investor provide possible ways that you can make abnormal profits? ( question from mutual fund (FI). 500 words . please.

Answer 1

We should have a very simple strategy of buy-and-hold . As the only surefire way to make money in stocks is to hold investments for long time periods, and to let the market's natural upward bias work its magic.

An individual should always invest in a business instead of simply looking at the stock price.

The decision to buy or sell a stock should not depend on what your friends or relatives say. An individual should not invest in a particular stock simply because people around him are investing in it.

Investing in the stock market requires regular tracking of news and company-related events, which may impact the stock price.

Investing in quality stocks for the long run always works. The BSE Sensex of India has advanced 16 per cent annually in last 15 years, whereas shares of companies like Symphony, Bajaj Finance have delivered annualized returns of over 50 per cent during this period.

Instead of panicking when stocks fall, we can jump at the chance to buy more of our favorite stocks at a discount.

Timely exit is important. Remember, a penny saved is a penny earned. If you believe the environment is getting tough for a certain business, you should not shy away from exiting.

Most importantly Time & Patience is certainly needed , If You are following all these strategies then you may be the next Billionaire of the world.