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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Fund managers managing over Rs 6 lakh cr bet on tech, consumer  private banks in July Total AUM of domestic MFs increased 1.2 percent MoM to Rs 24,50,000 crore in July after declining 6.5 percent in June, led by inflows in income and debt-oriented, equity and ETF schemes
Thu, 15 Aug 2019 10:39:51 +0530


Mutual fund equity inflows rise despite weak markets; SIP flows at all-time high in July Net inflows into equity schemes increased to Rs 8,092 crore in July
Fri, 09 Aug 2019 16:52:49 +0530


HDFC AMC posts strong Q1, should investors buy? NULL
Wed, 17 Jul 2019 14:50:09 +0530


#39;Current market weakness not similar to 2002-2003 crisis; bet on these 4 consumption stocks#39; FII#39;s outflow, slower domestic growth, weaker rupee, fiscal deficit are major concerns that should be addressed soon.
Fri, 23 Aug 2019 10:29:59 +0530


Market will continue to drift unless there is stimulus from government, says Avendus Capital With regards to the auto space, he said the house is constructive on the auto sector. According to him, there are a lot of things the government can do like reduce insurance which was moved from one to five years.
Thu, 22 Aug 2019 17:07:53 +0530


#39;Expect recovery in auto sector but may not reach all-time highs of 2018 anytime soon#39; We expect earnings to pick up only in the second half of FY20 especially the fourth quarter as the transmission of rate cuts along with increased government spending is expected to push up GDP growth.
Thu, 22 Aug 2019 13:20:37 +0530


#39;Don#39;t expect runaway rally in short run, keep insurance stocks in portfolio#39; Global situation is getting murkier, there are visible signs of slowdown in the leading economies of the world because of the US-China trade war.
Thu, 22 Aug 2019 10:55:08 +0530


Market is not as irrational as it is made out to be: Motilal Oswal#39;s Aashish Somaiyaa Somaiyaa said that they are merely in a consolidation phase currently.
Wed, 21 Aug 2019 17:55:52 +0530


Saurabh Mukherjea of Marcellus Investment is positive on these blue-chip stocks "Despite the depth of the downturn that has taken us aback, the financialisation of the economy continues – especially the flow into insurance policies, the flow into mutual funds and the PMS industry," Mukherjea said on Wednesday.
Wed, 21 Aug 2019 17:47:54 +0530


Naveen Kulkarni This is the right time as quite a few quality names are available at reasonable valuations. Moreover, the base will start softening in the second half of the year.
Wed, 21 Aug 2019 13:24:21 +0530


Here#39;s why HUL  Apollo Hospitals are among top 3 picks from SMC Global 10,900 and 11,000 Put strike witnessed marginal OI addition while on higher side 11,100 Call strike holds maximum OI in this week (August 22) expiry contract
Wed, 21 Aug 2019 10:47:34 +0530


#39;US-China trade war, and not inverted yield curve, can lead to recession#39; For an investor with a 3-year time horizon, auto stocks can be wealth creators. Market leaders in passenger vehicles, 2-wheelers and tractors are good long-term buys.
Wed, 21 Aug 2019 10:45:49 +0530


Shrikant Chouhan Our advice to traders and short-term traders is to stay away in taking bullish call for the next few weeks on HDFC
Tue, 20 Aug 2019 10:06:31 +0530


Expect markets to remain rangebound in near term: Raamdeo Agrawal There is a lot of investor interest in India, Agrawal said.
Mon, 19 Aug 2019 16:28:57 +0530


#39;Investors can buy a mix of FMCG, healthcare stocks for short term#39; The Nifty could face resistance in the coming week from the 11,108-11,181 band and later 11,210, while it could take support from 10,895
Mon, 19 Aug 2019 12:42:28 +0530


Dabur, Rallis and Britannia: 3 stocks that investors could buy after a fall We feel Nifty would further consolidate in the coming week within a broader range of 10,750-11,250 and either side breakout will trigger the next directional move, says Ajit Mishra, Vice President, Research, Religare Broking Ltd
Sun, 18 Aug 2019 07:54:06 +0530


FPI exodus on, banking and other financial sectors bear the brunt Overseas investors withdrew Rs 3,002 crore in July 2019, NSDL data shows. The selling in the equity market counterbalanced by the influx of Rs 9,433 crore in the debt segment.
Sat, 17 Aug 2019 07:38:51 +0530


Ashmore Investment prefers pharma, domestic commercial banks and select NBFCs According to Ashwini Agarwal, there is a palpable slowdown in the economy and there is a significant fear factor.
Fri, 16 Aug 2019 21:57:57 +0530


IRCTC files Rs 600-crore IPO papers with Sebi According to market sources, the IPO would be worth about Rs 500-600 crore.
Thu, 22 Aug 2019 15:35:05 +0530


Tepid Listing: Spandana Sphoorty Financial debuts at Rs 825, 4% discount to IPO price The stock opened at Rs 825 on the National Stock Exchange, against issue price Rs 856
Mon, 19 Aug 2019 10:04:48 +0530


Sterling and Wilson Solar closes IPO with 92% subscription The reserved category for qualified institutional buyers (QIBs) subscribed 1.02 times while non-institutional investors saw 89 percent subscription and retail individual investors 29 percent.
Thu, 08 Aug 2019 18:36:10 +0530


Affle India shares mark remarkable debut, closes with 17.5% premium The company#39;s market valuation was at Rs 2,231.19 crore on the BSE.
Thu, 08 Aug 2019 16:16:05 +0530


Strong debut: Affle India begins Day 1 at Rs 926, up 24% over issue price The IPO, which was opened during July 29-31, was subscribed 86.49 times on strong response from across investors categories.
Thu, 08 Aug 2019 10:12:48 +0530


Spandana Sphoorty Financial IPO subscribed 1.05 times on final day The IPO comprises a fresh issue of Rs 400 crore and an offer for sale of 93,56,725 equity shares, including anchor portion of 42,08,886 equity shares.
Wed, 07 Aug 2019 21:02:26 +0530


Subscribe to Spandana Sphoorty Financial: Choice Broking Choice Broking has come out with its report on Spandana Sphoorty Financial. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on August 2, 2019
Tue, 06 Aug 2019 18:13:28 +0530


Subscribe to Spandana Sphoorty Financial: Mehta Equities Mehta Equities has come out with its report on Spandana Sphoorty Financial. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on August 5, 2019
Tue, 06 Aug 2019 18:12:08 +0530


Subscribe to Sterling and Wilson Solar: Choice Broking Choice Broking has come out with its report on Sterling and Wilson Solar. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on August 03, 2019
Tue, 06 Aug 2019 18:12:04 +0530


Subscribe to Sterling and Wilson Solar: Mehta Equities Mehta Equities has come out with its report on Sterling and Wilson Solar. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on August 05, 2019
Tue, 06 Aug 2019 18:11:22 +0530


Subscribe to Sterling and Wilson Solar: Motilal Oswal Motilal Oswal has come out with its report on Sterling and Wilson Solar. The research firm has recommended to "Subscribe#39;#39; the IPO in its research report as on August 05, 2019
Tue, 06 Aug 2019 18:11:18 +0530


Sterling and Wilson Solar IPO subscription begins, should you subscribe? While assigning three-out-of-five rating to the issue, Centrum Wealth also suggests investors can subscribe to the issue from a long term perspective. It believes it is fairly priced.
Tue, 06 Aug 2019 09:12:15 +0530


Sterling and Wilson Solar raises Rs 1,406cr from anchor investors; IPO to open on August 6 The leading anchor investors include Nomura India Investment Fund, Schroder International, and Abu Dhabi Investment Authority among others.
Mon, 05 Aug 2019 20:38:06 +0530


Sterling and Wilson Solar IPO to open on Aug 6; 10 things you should know The shareholding of promoters Shapoorji Pallonji and Company Pvt Ltd and Khurshed Yazdi Daruvala will be reduced to 49.11 per cent and 25.01 per cent from 65.77 per cent and 33.33 per cent respectively, post issue.
Mon, 05 Aug 2019 17:16:09 +0530


Spandana Sphoorty Financial IPO opens today; should you subscribe? "SSFL#39;s successful exit from corporate debt restructuring (CDR) mechanism in March 2017 (well ahead of scheduled date of Mar’18), consistent profits along with a healthy asset book, builds confidence in the prospects," Centrum Capital said.
Mon, 05 Aug 2019 10:34:48 +0530

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