I am investing in L&T, RIL and SBI shares every month. I have never invested in stocks directly before this. I would like to know if it is advisable to carry on investing in shares directly, or should I invest in Birla Sun Life Frontline Equity & HDFC Top 200 through SIP?
- Kiran Nijher
It's a matter of choice and depends on the amount of quality time you can spend on managing your investment and your interest. If your selection has a basis which you believe in and stick to then it could be a good idea as well as cost effective too.
But there is more to investing than picking three quality stocks and investing in them regularly. You will have to worry about the portfolio weights and add more stocks for adequate diversification. Tax implication is another important factor.
To save on these, a mutual fund is recommended which gives an investor convenience, professional management, diversification, and tax efficiency.
This article was originally published on February 19, 2009.
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