Capital Market is Booming in India, is it advisable to remove Bank FD and put in stock market. .Pl advise?

Since Inflation eats interest rate, I amd planning to withdraw my money from Bank FD and Put In capital Market For New IPO, Mutual Fund . Isel New Ipo Immediately on listing , where as I hold Mutual fund and equity, pl guide. In bank we have to wait 7 years to double the money and where as in stock ayear or so ? Investing only in Blue chip company

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September 1st, 2010 at 9:02 pm
Okay, the grammar was broken there, but I think I understand your question. You want to know if it makes more sense to take your money out of your Bank account and invest in the India stock exchange, on what appears to be an IPO, mutual fund.
The IPO mutual fund part really threw me for a loop…that is, unless the Mutual Fund you are looking to invest in does nothing but invest its monies into IPOs…if that is the case, than you CANNOT purchase anything from the Mutual Fund itself in the Market. You are going to have to purchase shares in the Fund from the Fund directly.
There is always a risk when it comes to investing and you are 100% correct, that you do yield the potential to make more gains from investing in the market than your Bank Account. The reason being is there are increased risks within the open market that you do not have in a bank account. I would NOT look into getting involved in the Market by investing in IPOs. Wait til later for that. The reason being is that that IPO has never had any exposure to the market, so you do not know how well it is set to do. It is very risky and can be very expensive. If you are interested in India, perhaps look at some individual companies like Tata Motors. Just be real careful with IPOs.