Sanjiv Bhasin Share Market Tips for Beginners

Sanjiv Bhasin, Director at IIFL Securities Ltd is a share market veteran. Sajnjiv Bhasin has 30 plus experience in trading and investing into share market. Sanjiv Bhasin is mostly celebrated for his optimistic, bullish and positive attitude towards share market. Sanjiv bhasin is known for picking up and sharing market tips, news and advice to his followers. 


sanjiv bhasin

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Sanjiv Bhasin shares some of his tips and recommendations to beginners in share market or new and young investors who enter into the stock market. Below is his advice.

  • Invest Long Term
  • Understand your risk tolerance
  • Control your emotion
  • Handle your basics well
  • Diversify your investment
  • Avoid over leverage


Advice to New Investor

Invest Long Term 

Sanjiv Bhasin says you should be in the market for the long term and shares his views on market and investment that if you are an investor you should invest fully into that market until age of 40. Sanjiv Bhasin advises to invest long term for a minimum of 5 years time period to reap the benefits of share market.

Below are some of the key points to be followed

  • Plan long term goals - You should plan the goals for longer time in share market if you don't have the goal that is long term in the short time period you end up blaming market for mediocre returns.
  • Age Under 40 should be fully in equity - If your age is below 40 you should be investing all your savings into equity.
  • 5 years time period - Minimum time period for staying in equity is 5 years, if you are thinking about the short term, Sanjiv Bhasin advises that in the short term market volatility will be high and reward will be less.


Understand your risk tolerance 

Sanjiv Bhasin advises new investors to invest that amount that you are ready to keep in spare to avoid risking your all investments. Sanjiv bhasin advises not to take loans and invest into share markets. Advises new investors to be careful during the investing in to share market

Below are some of the key points to be followed

  • Invest spare money - Invest the money that you have kept in spare and avoid investing the money that you have kept for your specific needs.
  • Overbought - Avoid over buying a stock based on friend or family or relative advice; try to diversify your investment into multiple stocks.
  • Understand your risk taking capacity - If your risk taking capacity is high then try buying into small and mid cap investment. If you understand that the stock market is risky then try to avoid the stock market and invest into Fixed income Schemes.
  • Understand Market Risk Reward - Market risk is high when you are viewing the stock market in the short term as the volatility is high. In the longer term the reward is high, Sanjiv Bhasin advises the minimum long term is 5 years.

Control your emotion

Sanjiv Bhasin as an investor advises to control emotions in the share market. Any stock that is going high new investors tend to sell it and make profit and this should be avoided. Another thing to avoid is holding out on the stock that's going low and hitting daily low, in this case you should sell and exit the loss making stock.

Below are some of the key points to be followed

  • Greed and Fear - Understanding greed and fear and the two emotions that you should understand well while you are investing in the stock market. Greed will prevent you from selling and Fear will prevent you from buying.
  • Only invest spare money - Understand your money and try only investing the spare money that you kept aside, avoid investing the amount that you have planned for retirement.
  • Short Term High Volatility - In the short term there will be high volatility and you should control your emotions. Avoid selling if you get gains in particular stock and making profit and avoid buying the penny stock that looks cheaper

Handle Your Basics Well 

Sanjiv Bhasin says a stock price is all about earnings and macros, If earnings are good the stock will rise and if the earnings are not well the stock goes down. Advises new investors to invest in those companies whose debt levels are less and having good business profile.

Below are some of the key points to be followed

  • Understand Macro Micro - While analysing the stock you should understand the two factors that are macro and micro. Macro is related to the core vitals of the economy and Micro factors are the stock valuation and its future earnings. One must consider these factors while investing into the stock.
  • Understand credit expansion - If you pick up the stock understand how much debt / loan the company has on its books. Estimate the loans and its interest rate in future and try to avoid the stocks that have taken huge loans or the companies that are planning to expand their credit.
  • Three pillars - Understand the pillars of economy or stock they are 1. Consumption 2. Investments and 3. Imports. Make sure how the underlying business or economy is doing with respect to these three pillars and how exactly it's placed into its sector.
  • Short Term vs Long Term - In the short term markets are driven by sentiment and emotions. But in the long term the market will be driven by earnings and the macro economy factors. Understand them and invest wisely.

Diversify your investment 

Sanjiv Bhasin shares methods to invest not only in stock but also look for opportunities in gold, real estate and fixed interest schemes

Below are some of the key points to be followed

  • Age less than 40 - If your age is less than 40 you should be completely into the stock market. Try diversifying your equity allocation into multiple sectors, the sectors Sanjiv Bhasin advises are Banking, Consumption, Real Estate, Technology and Pharma are some of the major sectors to look for.
  • Age above 40 - Once you cross the age of 40 you should consider diversifying some part of your investment into Gold, Real Estate, and bonds. Diversification is the key to minimizing the risk and rewarding yourself into wealth.

Avoid leverage

If you are new to the market, you should avoid the derivatives market if you don't have much knowledge about it. Derivatives markets are high risk and highly rewarding when invested successfully with knowledge about it. Sanjiv Bhasin advises over leverage will kill your investments when your order goes against your strategy.

 Below are some of the key points to be followed

  • Avoid taking advice from friends / family - Although there may be scenarios where your friend or family or relative made huge money using derivatives. If you don't understand the derivatives market you should avoid risking your money. In the short term you may earn money or you may lose. If you are at a loss there will be a huge you cannot even imagine the amount of loss in derivatives market.
  • Understand how profits and losses are made - In derivatives you should understand how exactly you trade and how people make money and how they lose money. In bullish markets traders will buy puts and in bearish markets traders buy call options.

Disclaimer : This article is made purely for education purposes and does not recommend any stock investment. Please do not trade or invest your hard earned money blindly. For investment and trade please follow your investment advisor.

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