Staggered Investing
In the cover story about investing in small and mid-cap stocks, it was suggested that one should invest in these stocks in a staggered manner. How much percentage of my investible amount should I use to invest in this fashion?
- Avijit Maity
Editor Responds:
Thank you for writing to us with your query. When investing one should typically invest a quarter or third of your investable funds and then wait for a few days or a few weeks. During this time, you should closely watch the marketplace for news, events and announcements. If your investment has come down, but you consider it to be a great investment, you can consider buying more of it since it is available at a discount price. But, unless you have only a small amount to invest, it is always recommended to keep some funds on the sidelines, preferably earning interest as you wait for opportunities. Keep writing to us and have a good investing year ahead!