Ten points..regarding share business..?

Question

some friends of mine asked me to invest one lakh rupees ... to the stock exchange business(on be half of me but from him) .and he told we will give you three thousand per month ...

1)NOW I AM ASKING THAT; WHICH KIND OF BUSINESS IS THIS?

2)CAN I INVEST WITHOUT FEAR?

3)HOW IT WILL BE FIXED LIKE THAT..MEANS ON WHAT BASE HE CAN GIVE US THREE THOUSAND PER MONTH 'REGULARLY' ?

Answer 1

Be careful.

Lets say that the Lakh of rupees invested on the stock market was in shares in Company A. When these shares were sold a profit of 20000 rupees was made. You get 3000 rupees and the friends get the 17000 rupees. Lets assume they are astute investors and do the same each month for twelve months. Your share trading activities have produced 240,000 rupees of profit. You received 36000 rupees and your friends received 204,000 rupees. When you add the 240,000 rupees to your normal yearly income, what is your income tax bill going to be? 24,000 rupees or more? If you get into the higher tax bracket your income tax bill could exceed the 36000 rupees your 'friends' paid you. Are they really your friends? Or are they just trying to avoid paying their proper income taxes. Are they using you to money launder?

Answer 2

Returns through stocks depends on market risk. It is very difficult to time the market. People make big money and also loose big.

Return of Rs 3000 from investment of Rs 100000/ is as assuring return of 3% per month and 36% in a year .

In stock market such kind of returns are possible depending on market conditions and intelligent investment strategy.

better invest with reputed Mutual fund  rather than with unknown chaps.