Case Study - Capital Allocation

One of my old friend into his early fourtees got excited with my work, approached me and said he had 10 lakhs to invest, he asked which stocks to buy right now? and how he can learn stock market & make good profits as alternative income?

I replied him to start a fresh with objective & plan,

1. If you still do not have, buy immediately Term Life plan, Family Health Insurance, premiums may cost him 50 - 60k yearly based on features & plans

2. Invest 2 - 2.5 lakhs in P2P lending

3. Invest 5 lakhs in Mutual Fund diversified schemes

4. Keep 1 lakh swift transfer bank cash for emergency

5. Start monthly Mutual Fund SIP of at least 10k for Long-term (10 to 15 years) as per your current monthly earnings, Lastly

6. Buy stocks worth 1 lakh of any company that comes to his mind and hold till it makes loss of Rs.5000/-

He immediately replied, 'suggest stocks, I want to make profit from stock market and not a LOSS!'

I replied, 'whatever stock market I learned till now is from some professional courses, but before that from some small small losses made in live market and realizing practical mistakes, and yet I'm not 100% perfect. still I make losses, but gained knowledge & confidence to recover money back and make profits'

Remember, In stock markets #profit and #loss is part of game. It is all about your knowledge, objective, diversification, timing and risk planning.

Parimal Shah

Business Partner - Financial Products

There are many schemes available for investment. If you are interested, please contact us right now. We will study, suggest safe and best scheme that will fit your requirements, give better returns and safeguard your investment.