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.

  • MF News
  • Market News
  • IPO News


Big bet on SIPs: MFs garner over Rs 49,000-cr in Apr-Sep FY#39;20 A total of Rs 44,487 crore was collected through such investment plans in April-September 2018, as per the Association of Mutual Funds in India (AMFI).
Mon, 14 Oct 2019 08:05:04 +0530


Baroda AMC, BNP Paribas AMC to merge BNP Paribas Asset Management is a subsidiary of BNP Paribas Asset Management Asia.
Fri, 11 Oct 2019 22:32:05 +0530


It is a pause and not a reversal! Experts see Nifty at record highs in 2019 Technical experts feel that the trend favours consolidation in the near term, but bulls should be able to push the index towards record highs in the next few weeks.
Mon, 18 Nov 2019 13:01:39 +0530


#39;Data#39; is the rising factor for Alternative Investments in India Data in the current world is tricky and its usage even trickier for investment purposes. The usage of data should not fall under the ambit of phishing or invasion of privacy.
Mon, 18 Nov 2019 11:21:33 +0530


Ajit Mishra Indications are in the favour of further consolidation and we expect the Nifty50 to hover within 11,700-12,100 range in the coming week
Sun, 17 Nov 2019 07:48:06 +0530


Deepak Jasani Retail investors should learn from market moves, and may also want to upskill themselves regarding the ways of the markets, and individual stocks’ financials/valuations.
Fri, 15 Nov 2019 10:10:57 +0530


Muthoot Finance share price rallies 8% on stellar Q2 results Muthoot Finance share price jumped by more than 8 percent in morning trade on Thursday to reclaim Rs 700 levels, a day after it reported a 76.4 percent jump in consolidated net profit at Rs 908.54 crore in Q2.
Thu, 14 Nov 2019 10:02:13 +0530


Rahul Jain The recovery in headline GDP number will be gradual but real economic activity will revive in the ongoing quarter, says Rahul Jain of Edelweiss Personal Wealth Advisory.
Wed, 13 Nov 2019 11:58:46 +0530


Economic data disappoints: Did you make a mistake in investing when Nifty50 hit 12K? The market is on track to hit fresh record highs and the rally could well extend towards 12200 to 12600 on the Nifty which translates into a gain of nearly 6 percent from Monday’s closing of 11,913.
Wed, 13 Nov 2019 10:03:33 +0530


#39;Bank Nifty may test 33,200; invest in these 4 stocks for 1-2 yrs#39; The outperformance of banking has seen in the market so chances of moving closer to 33,200 can be seen. If it sustains above that then further progress will be seen.
Tue, 12 Nov 2019 13:24:48 +0530


Investors should look at bottom-up investing with max 15-20 stocks in portfolio I have reasons to believe that if the economy does well and I think it would, MFs performance in the next couple of years would be significantly different from the benchmark.
Tue, 12 Nov 2019 10:36:30 +0530


This smallcap debt-free company has given 1,000% return in the last 10 years This company#39;s high growth potential, debt-free status, healthy operating cash-flow and a strong order book makes it a preferred buy among analysts.
Tue, 12 Nov 2019 07:51:47 +0530


#39;Sharp correction unlikely; H2 FY20 could be relatively better than the first half#39; Constant reform agenda, better fiscal discipline, kickstart in private capex, last mile funding initiatives are some of the key levers for markets to continue the momentum to higher highs in the coming year.
Mon, 11 Nov 2019 17:55:01 +0530


Auto companies still not out of the woods: Harsha Upadhyaya, Kotak MF Upadhyaya said the house is hopeful of a turnaround in the mid and smallcap stock performance.
Mon, 11 Nov 2019 13:54:43 +0530


Mark Mobius bullish on gold, asks India to issue bonds for growth Talking specifically about India, Mobius said he is upbeat on domestic-oriented manufacturing of infrastructure, consumer-spending, as per capita income is going up.
Mon, 11 Nov 2019 12:04:49 +0530


Ajit Mishra India Inc. has put up a dismal show on an absolute basis (barring banks) considering the slowdown witnessed across sectors. However, if we compare the expectations, earnings have fared relatively better
Sun, 10 Nov 2019 07:35:07 +0530


Moody’s outlook shift unlikely to change things; Bulls will make an attempt towards 12K  There might be the minor sentimental impact of Moody#39;s downgrade but the market may ignore it as rating agencies#39; reaction.
Sat, 09 Nov 2019 09:57:03 +0530


IRCTC IPO oversubscribed by 111 times on last day of bidding The shareholding of government in the railways#39; tourism and catering subsidiary will be reduced to 87.40 percent.
Thu, 03 Oct 2019 16:30:47 +0530

Schedule A Meeting With Us


Financial Video