I came across the document ‘Investors Guide to the Capital Market’ produced by the Ministry of Corporate Affairs under the Aegis of ‘Investor Education and Protection fund’ (IEPF)
It contains some 20 generic mantras for investors to follow for successful investing. It would have been nice if the document contained some more depth in terms of the material. It appears to be put together in haste.
Also, I disagree with Mantra 4 (Invest in IPO & book profit on listing) & Mantra 5 (Invest in all PSU IPO’s. Don’t bother about listing price, stay invested). These two mantra’s mention that the investor will not lose money while investing in IPO’s and should try to take the profits on listing, aka recommending trading and timing.
Also, why should an investor invest in all PSU’s. Investors should invest in companies which will generate cash flow and maintain growth year on year and give returns in forms of either dividends or capital appreciation. Do all PSU’s guarantee outperformance over Private sectors. Answer is NO.
Beginner investor can refer to the document (albeit with a pinch of salt.) It starts off as follows.
Invest even more wisely
• Investing is compulsory.
• You have to invest otherwise your savings
will depreciate in value/purchasing power.
• However, mindless or reckless investing is
hazardous to wealth.
20 Mantras to Wise Investing
The complete link to the document is here. Investors Guide to Investing – NSE