Diversification of Portfolio 1 Real Estate 2 Bank Deposits 3 Public Sector Bonds 4 Share

Invest for a Roof over the Head Invest for a secure and stable In Invest for a secure and stable In Remainder to be invested in Sha

Limit ones investment in a single company to around 10% or maxim One should have shares in companies in different parts of the count One should not invest in a company that has a turnover (Sales) of le The company should have a large number of Shareholders. The company should have a consistent record of profitability. Ideally There should be regular dividend payouts during the previous 3 to 5 The share should have appreciated by about 25% to 30% per annum The company should have issued bonus shares periodically. One must examine the company whose prices are low and if the fun When the market is Rising, If a share falls by over 12.5% it would be When the market is falling, if a share falls by over 12.5% it would be

When Investing in Small Companies The parentage of the company should be looked at. If the company The reputation of the management is important. Managements mak The prosperity of a company also depends on its products. If the pro The industry the company is in should also be considered. Whether The company's share price record should also be looked at. If there The company's financials must also be examined. One should look f One should also check what the company does with its profits. Is the

Be Wary of Closely held or Family controlled companies. A company Do not invest in unlisted shares. Avoid inactive shares Do not invest in companies with bad industrial relations. Avoid vulnerable companies. A company that is involved in cyclical

If the shares you bought are falling in price, it is wise to sell if the pr

vest for a Roof over the Head vest for a secure and stable Income vest for a secure and stable Income emainder to be invested in Shares

mpany to around 10% or maximum 12% s in different parts of the country. hat has a turnover (Sales) of less than 500 Crores and a net worth of Rs 100 Crores. mber of Shareholders. nt record of profitability. Ideally the average after tax growth of profits should be around 20% p.a. outs during the previous 3 to 5 years. Most companies normally pay dividends of 20% or more. y about 25% to 30% per annum during the last 3 years. us shares periodically. se prices are low and if the fundamentals are good and it has potential, then one should buy the shares. falls by over 12.5% it would be prudent to get rid of it. falls by over 12.5% it would be prudent to sell it at profit.

d be looked at. If the company has been promoted by a well known group, the possibilities are that the parent c important. Managements make or break a company. A company managed by dynamic innovative group of peo ends on its products. If the products are in demand and its quality is good, sales will be high and will increase y d also be considered. Whether the industry is a sunrise or is a sunset industry. ould also be looked at. If there is a steady growth in price. It is an indication of stability. e examined. One should look for a steady growth in sales and profits every year and check whether a consisten pany does with its profits. Is the entire amount ploughed back into the company or is it entirely distributed to th

ntrolled companies. A company with less than 15000 shareholders should be termed as closely held company.

ndustrial relations.

any that is involved in cyclical industries sees its fortunes swing like a violent pendulum. Prices rise and fall with price, it is wise to sell if the price of share bought falls by 12.5% or more.

uy the shares.

are that the parent company or group will support it. novative group of people would grow and prosper. gh and will increase year after year.

whether a consistent trend can be percieved. rely distributed to the shareholders?. This is extremely important to determine whether the company will grow

sely held company.

rices rise and fall with frightening regularity. It is safer to be away from such companies.

e company will grow or not.