The urge to invest in Individual Stocks!
Should I invest in individual stocks? YES – by all means. But before that, please ensure you tick these 5 items : Your monthly S.I.P in Mutual Funds must be greater than your monthly EMIs. Your Mutual Funds portfolio is at least 3 times your annual income. You have min. 12 months of monthly expenses as emergency fund safely in bank FDs. You have min. 5-10 times of your annual income as your life insurance cover. You have min. 5 – 10 lakhs health insurance cover apart from company's cover & your parents are adequately covered too. These 5 items would ensure that you won’t be miserable in case things don’t work out in direct stock investments. Otherwise, even after how-much-ever you gain in direct stocks, it will not have any major meaningful impact in your financial status / freedom. * LOOK AT LOSERS TOO *: We get carried away by only those stocks which gave stellar returns - No one talks about the losers! Last 5 years return of famous Top 50 s...