New Opportunities in falling share market

Presently the share market is down and all the share prices are coming down day by day. Market pundits say it is bearish trend for another few weeks. In such conditions and circumastances, if you have some saved money, you can think of buying good scripts. Bank shares like ICICI is available at half the price. But the point to remember is that the risk factor involved in this has to be identified. Thats why, it is better to buy in phases, instead of all at a time. If you buy at present rates, in staggered manner, a profit of 30% is ensured in the next two months.

shares

Investing in market securities like shares, mutual funds is a good idea and money appreciation is also good. But you should know something about how to buy shares through demat account. You should keep money for only long term but not short term. Then appreciation of money is very good. Good company shares will act as your pension funds too.

savings account

keep a savings bank account in a nearest bank. keep all your money transactions in this account. As far as possible, use chequebook only. The interst rate you get from savings bank is as low as 4 percent. but for money manipulations, this account is needed . But never keep good amount of money in this savings account for long term ,or more than one month. You can receive salary into this savings bank account. Another thing. You should have a good habbit of keeping track of expenses and income. For every paise or penny should account for.Otherwise problem comes.

chitfunds

When your savings are considerably high, after paying recurring deposit if you have enough money, better join a reliable chitfund company. They collect monthly from you and after two years or so, you get good amount with about 35 percent of interest. The chitfund organizing method is different. In chitfunds, you can save as well as you can get a loan too. But reliability is of the company is important. margadarshi, kapil, sudarshan etc are good chitfund companies.

fixed deposits

When you receive bulk amount of money from maturement of Recurring deposit or chitfund, you can save that amount in fixed deposits. Though the interest rate from fixed deposit is comparatively low, it is not unwise to save amounts in fixed deposit. you can cancil at any time and get your money back

recurring deposit

Open this recurring deposit with a post office or a nearest bank. every month you will pay them as per your committment. Keep the term for one or two years only. Not more than that. Keep the monthly instalment also low, which can be paid from your piggy bank accumulation. When ever you get salary, drop some amount into piggy bank and collect it and pay to recurring deposit. When your savings are more , open another recurring deposit for another short tenure and save in that too. Never keep the payment goal not reachable in this saving method.

piggy bank

This is the first instrument in saving habbit. Keep a piggy bank where you can drop coins or notes from your savings. when you find coins scattered in your home, collect them and drop them into piggy bank and that accumulates into considerable income. When ever you avoid unnecessary expenditure like movies, going out , eating out, drop that amount into this piggy bank and at the end of month it would be interesting to you. When the accumulation is sizable, transfer them to any of the following methods of short term savings.