New Delhi: For the first time in history, the Sensex closed above 10000 points - adding over a 100 points on an action packed day. What does a small investor need to be wary of while investing ?
At a trading terminal, it's easy to feel the excitement of seeing the index touch the five-figure mark. But what does this mean for a retail investor?
Sixty-two-year-old Dilip Gandhi and his two sons have a plywood business in the western suburbs of Mumbai. Their day starts by taking a look at their godown where different kinds of plywood are stacked up.
Once that is over, they make a move to their office for a different business - investing. Dilip has seen bad days during the 1992 scam when he lost about Rs two lakh . But this time, it's a potent combination of maturity and youthful passion which is paying them rich dividends.
"We are very cautious now. Earlier we used to depend on tips, now it is all about analysis and research and only then invest," says he.
His son Bhavesh Gandhi says, "We had invested in penny stocks and lost a lot of money but we learnt our lesson. Now we have started investing in A1 and B1 groups and fundamentally good scrips. We have made good money."
With the index rising, its easy to be carried away, and whenever there is a fall in the market, it's the small investors who are swept away.
A word of advice for them.
MD, SMS financials, Ganesh Shanbaug says, "People need to book profits and invest in some assets and real estate. It's good to see the colour of money."
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