At a Moneylife event, Debashis Basu, explained in detail all the things that a saver needs to know about how and when to invest in stocks and bonds, given the current market environment

The BSE Sensex and the NSE Nifty continue to hit their all-time highs. A majority of Indian retail investors suddenly feel left out of the market and the new bull run.
However, the question on many savers' minds is, “Is the market now too high to jump into stocks?” or “Should we wait for a 'correction'?” At a Moneylife event titled, “Achche Din for Investors?— Investing successfully in the new regime”, Debashis Basu, editor and publisher of Moneylife, explained all that a saver needs to know about how and when to invest using a methodical approach and what should one expect from the new government.
 

In the first part of the session, Mr Basu captivated the audience by explaining how the average saver is influenced by the ‘noise’ from the media. Mr Basu spoke about seven facts of the stock market and what an investor should consider for making wise investment decisions.
 

Many investors seek, and blindly follow, tips and advice that are freely available. Most do not follow due process nor have the discipline to cross-check the facts and invest with conviction. An average investor has generally no clue about what he is buying or selling.
Mr Basu explained how to pick the right stocks at the right time and exit profitably. By giving historical evidence, Mr Basu showed how investors could time their buying and selling.
 

As the markets were moving sideways for most past of the last three to four years, fund houses have been constantly pushing debt funds as safe products. However, as Moneylife has pointed out many times in the past and re-emphasised in the section on when to buy bonds and bond funds, the returns from debt funds can be volatile and low. When comparing the returns to fixed deposits, debt funds may not always be a better option even post-tax. To answer the query about how the returns from debt can be better by having a sense of timing. Mr Basu explained how one could time their bond investments by analysing bond yields.
 

Mr Basu spoke on what one should be expecting from the new government and whether we are in for a ‘structural’ bull market. In the highly awaited last session, Mr Basu spoke on what to buy, keeping in mind the Central Bank’s stance on interest rates, market valuation and expected reforms from the new government.
 

The session included a lively interaction. Smart saving and smart investing is all about buying the right product at the right time. If you missed out on this event, not to worry, Moneylife will be conducting many more sessions such as this in future. Keep yourself updated on such events and new services, click here  to become a Moneylife member.