Beginners Guide to Investments
1 First steps to investing A Beginner’s Guide Save prudently…..Invest wisely GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS (Under the aegis of Investor Education and Protection Fund) 2 Editor Prithvi Haldea PRIME Database Second Edition – June,2011 3 First steps to investing A Beginner’s Guide TABLE OF CONTENTS Chapter Topic Page No. INVESTOR EDUCATION AND PROTECTION FUND 6 Investor Related Websites 6 iepf.gov.in 6 watchoutinvestors.com 6 investorhelpline.in 6 Become an Informed Investor 6 1 WHY IS INVESTING IMPORTANT? 7 Savings v/s Investing 7 Power of Compounding 7 What should be the investment objectives? 7 Investor Age and Asset Allocation 8 Individual Category and Selection Criteria 8 FIRST TIME INVESTING 9 2 CAPITAL MARKET 9 EQUITY SHARES 9 DEBENTURES/BONDS 9 Purchasing Securities in the Primary Market 10 Initial Public Offering (IPO) 10 Further Public Offering (FPO) 10 Dos for Investing in IPOs/FPOs 1