{"id":3923,"date":"2020-03-17T09:30:38","date_gmt":"2020-03-17T04:00:38","guid":{"rendered":"http:\/\/capitalante.com\/?p=3923"},"modified":"2020-06-14T11:14:27","modified_gmt":"2020-06-14T05:44:27","slug":"what-is-the-right-time-to-invest-in-stock-market","status":"publish","type":"post","link":"https:\/\/capitalante.com\/what-is-the-right-time-to-invest-in-stock-market\/","title":{"rendered":"What is the right time to invest in stock market?"},"content":{"rendered":"<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">It is quite difficult to find out the solution when an individual can start investing in the stock market i.e. what is the right time to invest in a mutual fund or direct equity. We will try to tell here about some conditions or aspects of the stock market. Whenever share market touches high or witnesses a sharp correction from its high peak, novice investors get in a dilemma whether to start investment. When the market inches toward a higher level or makes a lifetime high every week, new investors fear that the market may collapse or go into sharp correction leading to a loss for the investors. <\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Again, when the stock market witnesses sharp correction or enter in the bear market, investors do not consider it is the right time for investment. They think that the market may continue its correction, so it is not the time for investment. They think that the share prices may further downside more. So, these are the conditions that take place continuously in the stock market and people remain confused when to start investing.<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a style=\"color: #ff0000;\" href=\"https:\/\/economictimes.indiatimes.com\/wealth\/invest\/a-stock-market-correction-may-not-be-the-correct-time-to-buy-view\/articleshow\/63553859.cms\" target=\"_blank\" rel=\"noopener noreferrer\">A stock market correction may not be the correct time to buy: View<\/a><\/span><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a style=\"color: #ff0000;\" href=\"https:\/\/www.fool.com\/how-to-invest\/whens-the-right-time-to-invest.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">When&#8217;s the Right Time to Invest? &#8212; The Motley Fool<\/a><\/span><\/span><\/li>\n<\/ul>\n<h2><span style=\"color: #0000ff;\"><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt;\">The best time to invest in the stock market<\/span><\/strong><\/span><\/h2>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Practically, it is needless to say that the bear market and the bull market are the two inseparable parts of the stock market. An investor who wants to invest in the stock market for a long-term horizon should not get bothered by these two inevitable situations. If you are confused about the best time to invest in the stock market, we offer you this,<\/span><\/p>\n<blockquote><p><span style=\"color: #0000ff;\"><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt;\">Yesterday was the best day to start investment in the stock market. If you missed it then the next best day is today. The worst day to start an investment is tomorrow.<\/span><\/strong><\/span><\/p><\/blockquote>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Many novice investors have an idea that the stock market is basically buying a stock at a lower price then selling the share when it is higher than the cost price. But many beginners are confused about the best time to invest in the stock market either via a mutual fund or buy any stock. What if the share price shows a major correction and comes below the buying price. What shall I do then? In this connection, I offer you this,<\/span><\/p>\n<blockquote>\n<div id=\"quote_text\" class=\"quote_text\"><em><span style=\"color: #0000ff;\"><strong>The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies. \u2014\u00a0<span id=\"quote_author\">Benjamin Graham<\/span><\/strong><\/span><\/em><\/div>\n<\/blockquote>\n<h3><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">Whether investing in the stock market via Mutual Fund or Direct Equity<\/span><\/strong><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">The best approach is that you can start an investment with a little amount, preferably via a mutual fund if you do not have adequate knowledge to start an investment in direct equity. Then gradually you may increase your investment as your income increases. Let\u2019s make it clear with an example,<\/span><\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-4141\" src=\"http:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/5.jpg\" alt=\"What is the right time to invest in stock mar\" width=\"705\" height=\"309\" srcset=\"https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/5.jpg 705w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/5-300x131.jpg 300w\" sizes=\"(max-width: 705px) 100vw, 705px\" \/><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">From the above discussion, we can say that it is not a matter at which price an investor bought Titan Company. It does not matter anymore if one investor buys Titan Company at Rs. 250 or even 300. If any investor bought Titan Company at the price of Rs. 300\/- then the stock has delivered a return of 200% return in just 6 years. You should stick to a company for a long time to get the desired return after making a proper analysis of the stock before investing in it.<\/span><\/p>\n<h3><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">Why long-term?<\/span><\/strong><\/h3>\n<blockquote><p><em><span style=\"color: #0000ff;\"><strong>&#8220;In the short run, the market is a voting machine but in the long run, it is a weighing machine&#8221;. \u2014 <span id=\"quote_author\">Benjamin Graham<\/span><\/strong><\/span><\/em><\/p><\/blockquote>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">One of the major benefits, when you invest over a long-term horizon, is compounding interest. Let\u2019s make it clear with the following example. Just look at the following graph.<\/span><\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-3807\" src=\"http:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/1.png\" alt=\"How to make money in the stock market\" width=\"740\" height=\"399\" srcset=\"https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/1.png 740w, https:\/\/capitalante.com\/wp-content\/uploads\/2018\/11\/1-300x162.png 300w\" sizes=\"(max-width: 740px) 100vw, 740px\" \/><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">If you make a lump sum investment of Rs. 1 lakh at once and allow the money to compound at the rate of 15%, then you will get-<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">4 lakh after 10 years,<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">16 lakh after 20 years,<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">66 lakh after 30 years.<\/span><\/li>\n<\/ul>\n<h6><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">How to Pick Best Stocks for a consistent return<\/span><\/strong><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">In order to get the desired result as discussed above, you should check out the following factors before investing in any company,<\/span><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Market capitalization<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Debt ratio<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Compounded sales growth<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Compounded profit growth<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Return on equity<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Good dividend yield<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Price to earnings ratio<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Balance sheet<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Profit and loss account<\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Free cash flow statement<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\"> <a style=\"color: #ff0000;\" href=\"http:\/\/capitalante.com\/how-to-pick-best-stocks-step-by-step\/\" target=\"_blank\" rel=\"noopener noreferrer\">How to pick best stocks for consistent returns<\/a><\/span><\/span><\/p><\/blockquote>\n<h3><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>Investment approach<\/strong><\/span><\/h3>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">It is advised for the new investors to invest in the stock market via mutual funds. If you are worried that the price of stocks may go downward, you can carry out your investment via a systematic investment plan (SIP). The systematic investment plan enables an investor to invest regularly in the stock market irrespective of the market condition i.e. bull market or bear market. Like a mutual fund house, you can opt for an equity sip where you can invest regularly in the stock market regularly as your desired company.\u00a0 Many Demat account providers i.e. SBICAP Securities, ICICI Securities, HDFC Securities, etc. offer equity SIP where you can invest in stocks every month. Your broker debits money from your account and with that money buys shares of your desired company and allots those shares in your Demat account. <\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Suppose, you choose 4 stocks namely HDFC Bank, Titan Company, Minda Industries, and Asian Paints. You may put equity SIP to buy one share every month for each company. Your broker will buy shares in accordance with you and allot them to your Demat account every month.<\/span><\/p>\n<h6><strong><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">Finally,<\/span><\/strong><\/h6>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">You should start investing right now after making a proper analysis of various stocks. You may also choose mutual funds if you have no knowledge about the stock market or have not got enough time to make a proper analysis. In the case of mutual fund investment, just check the performance of the mutual fund for the past 5 years.\u00a0 If you invest in direct equity, after making a proper analysis, you can diversify your portfolio to mitigate the risk of loss. Always try to find good stocks that fit your analysis, irrespective of bear or bull market. All you need to do is to stay invested over a long-term horizon irrespective of short-term volatility. If you waiting for the best time to buy stocks, you may miss the bus.<\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\"><strong>How Capitalante can help you<\/strong><\/span><\/p>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Are you confused about how to prepare an effective financial plan to achieve financial freedom? If yes, learn <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/capitalante.com\/financial-planning-services\/\" target=\"_blank\" rel=\"noopener noreferrer\">how to prepare effective financial planning<\/a>.<\/span><\/span><\/p>\n<p><a href=\"http:\/\/capitalante.com\/financial-planning-ebook\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" class=\"aligncenter wp-image-6837 size-full\" src=\"http:\/\/capitalante.com\/wp-content\/uploads\/2020\/03\/Financial-Planning-eBook.png\" alt=\"Financial Planning eBook\" width=\"728\" height=\"90\" srcset=\"https:\/\/capitalante.com\/wp-content\/uploads\/2020\/03\/Financial-Planning-eBook.png 728w, https:\/\/capitalante.com\/wp-content\/uploads\/2020\/03\/Financial-Planning-eBook-300x37.png 300w\" sizes=\"(max-width: 728px) 100vw, 728px\" \/><\/a><\/p>\n<ul>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a style=\"color: #ff0000;\" href=\"http:\/\/capitalante.com\/what-to-do-in-a-volatile-stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">What to do in a volatile stock market<\/a><\/span><\/span><\/li>\n<li><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #000000;\">Read also:<span style=\"color: #ff0000;\">\u00a0<a style=\"color: #ff0000;\" href=\"http:\/\/capitalante.com\/best-stocks-to-buy-in-india-for-long-term\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top 10 best stocks to buy in India for long term<\/a><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: georgia, palatino, serif; font-size: 14pt; color: #0000ff;\">If you have found any question regarding is it the right time to invest in the Indian stock market feel free to comment so that we can have a discussion. If you found this post helpful please share it with your loved ones.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is quite difficult to find out the solution when an individual can start investing in the stock market i.e. what is the right time to invest in a mutual fund or direct equity. We will try to tell here &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What is the right time to invest in stock market?\" class=\"read-more button\" href=\"https:\/\/capitalante.com\/what-is-the-right-time-to-invest-in-stock-market\/#more-3923\">Continue Reading<span class=\"screen-reader-text\">What is the right time to invest in stock market?<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":4147,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3923"}],"collection":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/comments?post=3923"}],"version-history":[{"count":0,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/posts\/3923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media\/4147"}],"wp:attachment":[{"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/media?parent=3923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/categories?post=3923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/capitalante.com\/wp-json\/wp\/v2\/tags?post=3923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}