I am beginner and want to invest 1-2 lakh in banking Sector Like SBI, HDFC, ICICI etc. for about 12 months. Is it a good idea?
- zman492Lv 75 months agoFavorite Answer
I do not have any particular concerns with the banks you mentioned, but I am not sure what kind of investment. If you are talking about buying stock I have two concerns.
(1) Generally you want stock investments to be for a longer term. I usually recommend that people plan to hold a stock investment for five years or more. Stocks values tend to increase over time, but a market correction an occur at any time and f you have to sell during the correction you can easily lose money.
(2) Most of the time it is better (safer) to diversify more instead of putting all your money into a single market sector. Of course, potential profits are higher when you choose to take more risk, if you happen to be right.