If you had 25 lacs INR in your savings account, how would you use the money?

General
21

I had that much when I opened my first trading a/c this april. Lost a few lakhs in the first two months and recovered part of them and still some more to be recovered
It depends on factors like your risk appetite, age, etc.

My suggestion (learnt from my mistakes):
If you are 40+ then it is better to put more money in safe zones and less in trading
If you are young and can bare loss of a few lakhs then you can put more in trading
In any case, diversification is a must. Keep some in very safe zones like FDs, MFs, PPF, etc. Keep some in emergency fund as well.
If you are not in a job then maybe start some business in a field you are good at
If you can buy a plot for 5-8 lakhs and you think thatā€™ll appreciate well then maybe that one

So, summary:
Diversify in intraday, delivery, SIP, FDs, MFs, PPF, emergency fund, business, a plot at outskirts, etc. You are the best person to decide the ratio for yourself. Let us know what you did

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22

This is what I too thought after making big profits quickly in the starting days. Soon I realized that not all days are sundays :slight_smile:

23

If you are planning to do this then I feel buying at dips is better. It may take a few weeks/months but it is worth it

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24

I did read your post on Alexander Elderā€™s triple screen method of trading. It was very enlightening, thanks for sharing! You seem to be in the know-how of the markets, looking forward to hearing more from you.

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25

you will get interest if decent bank.and if only the bank get bankrupt . u may lose money

26

I will invest 15 L to 20L in good quality fundamentals stocks which are in momentum & keep 5- 10L for trading.

I may encash part profits once the stocks starts showing some correction after giving some upmove & may reinvest the money back in them buying on dips after consolidation.
For example If I hold 100 shares of XYZ, I will only sell 50 - 70% equity after making some profits but will always keep 30 - 50% equity in demat for long term horizon. This will never be sold & only in rare events of big markets crash, I may exit /average by buying on lower levels.

Now remaining part amount around 5 - 10L , I will use for intraday or F&O delivery.

I expect a return of 5 - 10% max per month from the large chunk of amount invested. And expecting a return of 10 - 20% per month from capital used in day trading. Being on conservative side.
Not being aggressive.
(I know 50 - 100% return per month is quite possible in day trading but I m talking about worst case scenario & being on the conservative side.)

Seeing some great intraday opportunities, I would also consider at times but not always, selling partly equities from demat account in the morning hours & buying them back end of day to increase Margin for trading & at the same, smartly not affecting the Long term capital gain dates for equities which are meant for long term horizons.

(This can be done for shares in consolidation or sideways movement. )

To summarize-

The overall idea is to diversify the entire portfolio investing large chunk of money & trading on smaller portion.

For the larger chunk of money invested, it is further divided into 2 parts, one for short term gains & reinvesting back this amount on dips.
And second part for long term investment meant to utilize the benefits of long term capital gains, though regular benefits from dividends , bonus will add to extra profits too.

Remaining smaller portion will be kept for day trading.

2 Likes
27

Hi @Tintin
Let me begin by stating that I am not an authorized investment advisor so please do not consider the following as investment advice. You should consult your investment advisor before taking any decision.

There are many subjective factors basis which the money can be allocated across various available options. Hypothetically, if I had Rs.25 lacs and had the following skill set then I would have done the following:

New to stock market, Have a source of income (job/business/consultancy/etc.), Conservative investor/trader

  1. Keep Rs.50,000 for investing (if investing oriented)/ trading (if trading oriented).
  2. Keep Rs.10,00,000 in NiftyBees
  3. Keep Rs.14,00,000 in Debt fund
  4. Keep Rs.50,000 in LiquidBees (If money requirements arise for personal spending, can convert to cash in 2 days)

New to stock market, Have a source of income (job/business/consultancy/etc.), Aggressive investor/trader

  1. Keep Rs.50,000 for investing (if investing oriented)/ trading (if trading oriented).
  2. Keep Rs.10,00,000 in NiftyBees
  3. Keep Rs.14,00,000 in Growth fund
  4. Keep Rs.50,000 in LiquidBees

Experienced stock market participent, Have a source of income (job/business/consultancy/etc.), Non-Conservative investor/trader, No experience with derivatives(F&O)

  1. Keep Rs.3,00,000 for short term trading/investing
  2. Keep Rs.10,00,000 in High Quality growth stocks for long term investing
  3. Keep Rs.11,50,000 in NiftyBees
  4. Keep Rs.50,000 in LiquidBees

Experienced stock market participent, Have a source of income (job/business/consultancy/etc.), Non-Conservative investor/trader, Experienced in derivatives(F&O)

  1. Keep Rs.3,00,000 for short term trading/investing
  2. Keep Rs.10,00,000 in High Quality growth stocks for long term investing
  3. Keep Rs.11,50,000 in conservative hedged Index Options strategies / hedged Index F&O combined strategies (Knowlege and expericence in strike selection, expiry selection, volatility levels, etcā€¦ is very important)
  4. Keep Rs.50,000 in LiquidBees

There are many other personal factors that have not been considered as they are not known.

Please Note Again: The above should not be constituted as investment advice

4 Likes
28

Not to sound like an arse, but I donā€™t! so rather not comment on hypotheticals. Sorry.

Iā€™ll just say this. What you think you will do when you donā€™t have the money and what you will when you do will when you have the money will be two different things.

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29

Hello @Tintin,

If I have 25Lacs INR with me,

I Invest 5L as FD (constant returns)
5L to lend the money to others
8L to stocks
2L to start some normal breakfast center in hyderabad.
5L in MF

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30

I offer Only best of "B"s ā€¦ Either Bangkok or Bali

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31

I will employ some technical analysts
Give them salaries on percent of profit that I generate

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32

@vijender88

SENIORS WHEN I AM MYSELF IN MARKET, HAVE A LITTLE UNDERSTANDING OF MARKET, HAVE MY OWN MONEY,
SO WHY SHOULD I DEPEND ON FDā€™S OR MFā€™S.

33

@Tah_Original

ARE YOU NOT CONFIDENT OF YOURSELF.
WELL ITā€™S YOUR MONEY, SO YOUR WISH TOā€¦

34

i lost my job
have 15 lacs
Pls suggest
am not succesful on day trading lost 3 L

want monthly returns
thank u

35

Sir, Apply for new Job.
Experience Holders have no problem in finding new Jobs.

immediately Stop Day Trading.
Start doing Swing Trading in Equity.

If You will learn it right way.
You will get weekly returns.

3 Likes
36

Entries will be mine,my friendā€¦ They are going to provide me the detailsā€¦

37

Dear @Nagaraja_Medahalli_V be very careful about trading with scared money. Psychology & especially fear plays a major role in trading. I donā€™t see anybody regaining relaxed balanced state of mind quickly after loosing job & 20% of your liquid savings. My suggestions

  1. Stop trading completely if u donā€™t have prior experience in stock trading/investing.
  2. Try to first regain mental peace first.
  3. Then start analysing if you have any edge /advantage than other traders. Try to work on it and come back to markets. Start with very small amount & cash market. Coz inexperienced traders are known to blow up accounts several time before getting it right.

(Finally u donā€™t need to worry about not getting back the job if u cant, trading is one of the most profitable business but also the most toughest job. So be assured u have a challenging and open future in trading)

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38

@TraderVenk

i truly agree with you,

knowledge is the foremost thing, as relying on other is a task of fools

i will add: always keep your eyes on goal,

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39

you have lost job bad luck but bro my advise is not to loose this money trading with full capital. firstly get skill then trade in big quantity

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40

Bro, send your resume to me, let me try some referrals
Now that money should be saved even more carefully, reduce the risk you used to take in trading. Keep money in as safe means as possible
Try your best to get another job. If you donā€™t get one in 6 months or a year then maybe you can use that money to start a good business. 15L is not at all sufficient for life, you need some regular income so either get a job or start your own. Good luckā€¦

1 Like