Equity



 
When we buy equities, we start looking at the price next day or next week. For many who call themselves investors,ong run is 1 month. But do you think the management of the business of which we buy shares really looks at their business growth in such a short period.
In equities, the rule of Farming applies. This basic rules states that -



1. You first have to sow a seed.
2. Keep watering it for it to grow.
3. Wait for some time with patience.
4. With passage of time, you will get fruits of your hard work and patience.

But when it comes to equities, we think that HAATHON MEIN HI SARSO UGTI HAI. We want good return in short time. How many of us really think of equities for long horizon? We keep Gold for generations. Grandparents go for bank fixed deposits for their grandchildren, but no one invests in share of banks, say HDFC Bank for their kid’s marriage. And, no one plans to invest in equity mutual fund for their retirement.    

Fundamental Investing & Speculation
Equity give you two kind of return, one is speculative and another is fundamental growth. 95% of the investors in shares are here for speculative gain, that is gain  from the short term price movement of shares. They start TIMING THE MARKET rather giving TIME IN THE MARKET. This approach for short term gains is the real cause of loss. Investment for long run is not only rewarding but also beats inflation by a good margin and creates wealth. Now think of Indian business or Indian Economy for next month, you will be clueless but think of it for next 5 years, 10 years. We know that you are aware of the answer.

Risk Involvement
Now people call equity risky. Unfortunately risk is not understood by many investors. In short run, risk is in volatility of price of underlying asset i.e., how much it can rise and fall given a period of time. But in long run risk is not volatility but the risk is to maintain the purchasing power of your money. Look at the price of petrol in last 30 years (in below chart) and then compare it with your return in FDs, Gold, Endowment or Money Back Plans. Why people don’t make money in Equities?

Just to give you comparison how equities have delivered returns over last 30 year, look at the graph below. The graph shows you how Rs. 100 invested in different asset class fared over last 30 years ending March 31st 2010.



Looking at the graph above, it must be clear that equities do give returns. But the question still remains unanswered that if Equity gives returns, Why people don’t make money out of equities. The answer lies in their EMOTIONS. The two basic emotions Greed & Fear will make you feel comfortable when the markets are going up and feel disheartened when the market goes down, even though one really don’t need to sell at that time. Always remember that equities is a long term investment and after you invest if emotions are making you restless, think about forgetting this investment. Checking daily profit or loss and anticipating the future growth has no meaning and is futile exercise.

In the end, invest in equities, but as a long term investor and partner the Indian Growth Story.

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Equity MF inflows muted, but SIP inflows hit an all-time high in April Market reforms introduced by SEBI such as reduction of total expense ratio and introduction of direct plans have attracted retail investor
Thu, 09 May 2019 16:21:57 +0530


Reliance Nippon Life: Soft FY19 earnings, but ADAG stake sale may move the needle NULL
Thu, 02 May 2019 15:25:34 +0530


Raamdeo Agrawal He further said India has to grow 7-9 percent, but for that credit freeze, which has been spreading and causing havoc, should be solved
Thu, 23 May 2019 16:04:57 +0530


Global experts positive on India, expect midcaps to outperform largecaps According to them, midcaps are expected to see more action than largecaps in coming months and sectors to outperform will be financials, consumption and infrastructure
Thu, 23 May 2019 15:33:27 +0530


Gaurav Dua We believe that a large part of the new government policy would depend upon attracting foreign direct and portfolio investment to fill in the resource gap domestically
Thu, 23 May 2019 15:02:43 +0530


#39;Market may consolidate at current levels; bet on consumer and financial sectors#39; Nilesh Shah of Envision Capital said there could be a similar situation like 2014 when Nifty hit 7,500 and then saw consolidation around 7,200-7,300 followed by a strong run
Thu, 23 May 2019 14:18:30 +0530


Modi 2.0: Morgan Stanley sees Sensex at 45,000 and Nifty at 13,500 by June It adds Asian Paints and Interglobe Aviation to the Focus List at the expense of Adani Ports and Eicher Motors
Thu, 23 May 2019 13:46:34 +0530


India is home to many companies with growth potential, says Aberdeen#39;s Adrian Lim Talking about investments, he said the firm has a disproportionately large exposure to India within the region.
Thu, 23 May 2019 13:36:45 +0530


#39;Nifty may consolidate after record highs, broader markets can see action#39; Ved further said the government will start working on its plans very soon as it is very proactive
Thu, 23 May 2019 13:12:55 +0530


Indices may surge 13% in 6-12 months; financials to dominate: Atul Suri According to Suri, once the election euphoria dwindles, the focus will be back to international markets with crude and corporate earnings in the forefront
Thu, 23 May 2019 12:32:43 +0530


Opportunities available in broader market: Nilesh Shah Nilesh Shah said definitely RBI will talk of about inflation and growth trajectory. Now inflation is under its target, growth will be in focus, he added
Thu, 23 May 2019 12:16:14 +0530


Foreign investors will take heart from a fairly large NDA victory, says Teresa Barger of Cartica Capital "I think I am more interested in what the domestics are going to do," Barger said.
Thu, 23 May 2019 12:04:12 +0530


Infra spending, labour reforms key priorities for new govt: Mark Mobius On the biggest risk factor, he said global growth concern and any rise in oil price are risks for India.
Thu, 23 May 2019 11:15:49 +0530


NBFC crisis is the biggest risk; railway and defence contrarian bets: Ramesh Damani He said there is a strong chance that RBI will ease liquidity concerns. In addition, it is a duty of any finance ministry that they have to reassure and try to contain NBFC crisis
Thu, 23 May 2019 10:55:17 +0530


Midcaps at record low valuations, good time to buy: Arvind Sanger Arvind Sanger feels midcaps, which have been negatively impacted by liquidity and corporate governance issue, are not going to outperform only on back of election outcome
Thu, 23 May 2019 09:37:22 +0530


If election results are different from exit polls, Nifty can tank 3-5% on May 23 The volatility index, India VIX has already hit 4-year high of 30.18 in the intraday trade on May 22
Wed, 22 May 2019 15:37:14 +0530


Ashish Chaturmohta India VIX jumped 8.3 percent to close at 25.65. We expect volatility to continue in the market this week with election results on May 23
Wed, 22 May 2019 14:09:37 +0530


Bumper debut: Neogen Chemicals ends with 23% premium at Rs 264 At closing price, Neogen#39;s market capitalisation stood at 614.98 crore
Wed, 08 May 2019 16:45:39 +0530


Strong listing: Neogen Chemicals debuts with 17% premium at Rs 251 Thanks to the heavy buying, the stock was locked at 5 percent upper circuit
Wed, 08 May 2019 10:06:54 +0530


Neogen Chemicals to list equity shares on May 8 The issue price is fixed at higher end of price band of Rs 212-215 per share.
Tue, 07 May 2019 20:56:37 +0530


Neogen Chemicals IPO subscribed 41 times on strong support from investors The reserved portion for qualified institutional buyers has seen subscription of 30.49 times and non-institutional investors 113.88 times while retail category oversubscribed 16.06 times so far.
Fri, 26 Apr 2019 21:30:05 +0530


Neogen Chemicals IPO fully subscribed; retail subscription at 3.15 times The reserved portion for qualified institutional buyers was subscribed 95 percent and for non-institutional investors was 1.12 times while retail individual investors#39; category has seen subscription of 3.15 times.
Thu, 25 Apr 2019 18:19:49 +0530


Subscribe to Neogen Chemicals: Mehta Equities Mehta Equities has come out with its report on Neogen Chemicals. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on April 25, 2019
Thu, 25 Apr 2019 13:43:16 +0530


Neogen Chemicals IPO opens today; should you subscribe? Anand Rathi said higher multiple is justified given the company’s ability to grow profitably and command better return ratios. Hence it recommended subscribing the issue
Wed, 24 Apr 2019 09:52:33 +0530


Neogen Chemicals IPO to open on April 24; here#39;s all you need to know Neogen Chemicals (NCL) is manufacturers of bromine-based, and lithium-based, specialty chemicals
Tue, 23 Apr 2019 08:58:18 +0530


Avoid Neogen Chemicals: Choice Broking Choice Broking has come out with its report on Neogen Chemicals. The research firm has recommended to "Avoid#39;#39; the IPO in its research report as on April 22, 2019
Mon, 22 Apr 2019 14:00:00 +0530


Avoid Neogen Chemicals: Choice Broking Choice Broking has come out with its report on Neogen Chemicals. The research firm has recommended to "Avoid#39;#39; the IPO in its research report as on April 22, 2019
Mon, 22 Apr 2019 14:00:00 +0530


Bumper Listing: Polycab India debuts with 18% premium at Rs 638 The Rs 1,345-crore public issue saw a massive subscription of 51.96 times during April 5-9, 2019
Tue, 16 Apr 2019 10:00:50 +0530


Metropolis Healthcare ends at Rs 959.85, a 9% premium over issue price Metropolis Healthcare#39;s market valuation was at Rs 4,814.90 crore on the BSE
Mon, 15 Apr 2019 16:34:19 +0530


Good Listing: Metropolis Healthcare debuts with 9% premium at Rs 960 The stock opened with a 9 percent premium over its issue price of Rs 880 while on the National Stock Exchange it opened at Rs 958.
Mon, 15 Apr 2019 10:07:37 +0530

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