Thursday, June 19, 2008

When to invest

The key question today for an investor is when to invest and what kind of investments to go for. Should one go for long term investments or one needs to move in to day trading. This will all depend on the kind of funds available with the investors. An investor who has the capability to invest for the long term should keep his funds ready now. With the nuclear twist taking a final turn there could be a sharp fall if the govt falls. This would be an excellent opportunity for the long term investor to park his funds. The advance tax data is expected to be robust and this could lead to short term upward spikes in the market however the trend surely seems to be down with a lot of uncertainity on the political and the inflation front. Another investment opportunity which would come up over the coming months would be the debt market mutual funds. The interest rates are on a rise and the when signals appear in that the rates have peaked and the trend is likely to be reveresed then one should park money in debt funds as this would result in not only good interest income but also capital gains as the reducing interest rate would lead to higher valuations for the bonds.

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