The focus of this article is to provide a quick technique in selection of mutual fund along with individual stock selection using various methods.
Lets take a look at various BSE Indexes performance:
Going forward if this rally continues and market goes on to make NEW HIGH then these 3 indexes will have higher probability of performing over other indexes in the group. This in turn also tells us we should watch best performing stocks in these indexes to find good candidates while investing in individual stocks.
Use a good mutual fund screen-er tool to find right funds:
- Fund age is more than 10 years
- Good rated fund
- Expense ratio is equal to or less than 2%
- Go for Equity funds
- Do not select more than 3 funds as you will be diversified enough by allocating your funds in 3 different funds
You can check out our page on "How to select Mutual Funds?" for detail information.
How to select individual stocks?
- Search for stocks which are with in 15% of there all time high
- Search for stocks which have performed more than 200% in a year and currently under going consolidation
- Easy method is to check for stocks in above TOP 3 indexes for best candidates
- Stock price is not under Rs.10/-
- Stock average volume on daily basis is more than 10,000
- Stock is in an up trending channel for last 2-3 months
- Stock earnings are not in next 21 days
We hope this helps... good luck!