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 improve slightly in May, SIP flows remain stable MFs received net fresh flows of Rs 76,989 crore in April, mainly driven by stable inflows into liquid funds and modest equity figures.
Mon, 10 Jun 2019 16:46:25 +0530


Budget Snapshots | Mutual funds would be happy if LTCG exemption is restored NULL
Mon, 10 Jun 2019 12:58:15 +0530


ADAG#39;s exit from Reliance Nippon AMC to allay investor fears, may trigger re-rating While a rightful discount to HDFC AMC is justified, RNAM is trading at a significant discount, which we think should now narrow following the change in parentage.
Fri, 24 May 2019 16:33:16 +0530


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


Investors should stay positive: S Krishna Kumar, Sundaram MF "The government had earlier promised to lower corporate tax and rationalising GST and so one would look for those directions in the upcoming budget." said S Krishna Kumar, CIO - Equity, Sundaram MF
Tue, 18 Jun 2019 16:19:19 +0530


Shailendra Kumar From a portfolio perspective, adding good quality domestic cyclical continues to be profitable.
Tue, 18 Jun 2019 12:51:14 +0530


Sanjiv Bhasin We are very selective in NBFCs as the dust has to settle with the churning out of the "men from the boys", says Sanjiv Bhasin
Tue, 18 Jun 2019 12:19:37 +0530


Prasun Gajri The earnings growth is still not broad-based and the economic slowdown will have a larger impact on mid and small caps. Hence, we will wait for better entry levels for small and mid-caps.
Tue, 18 Jun 2019 12:08:36 +0530


Hrishabh Sanghvi Backtest cycle can give you improvised results of this basic strategy, it’s easy to fall into the trap of “curve fitting”.
Tue, 18 Jun 2019 12:05:47 +0530


Nifty can extend fall towards 11,450-11,500; here#39;s why Exide  India Cements are top sell ideas Nifty is in a short term downtrend and can extend the fall towards 11,450-11,500 zone. One should remain bearish in Nifty with the stop loss of 11,800 on closing basis.
Tue, 18 Jun 2019 11:13:15 +0530


Aditya Agarwala A sustained move above 11,620-11,590 can trigger short covering rallies to levels of 11,830-11,870.
Tue, 18 Jun 2019 10:40:10 +0530


Did you notice? SBI Life Insurance, Shree Cement entered $10 bn club in 2019 Shree Cements and SBI Life entered the $10 billion club in 2019, while JSW Steel and Vedanta which were quoting a market capitalisation of over Rs 69000 crore on December 31, 2018, failed to sustain momentum and are out of the club.
Tue, 18 Jun 2019 09:18:37 +0530


Not very positive on public sector banks: Franklin Templeton On auto stocks, Franklin Templeton#39;s Sukumar Rajah said: "I think there are structural changes that are happening."
Mon, 17 Jun 2019 17:43:40 +0530


Bhavesh Sanghvi The Indian market will retain its attractiveness based on one major factor, that is differential returns, which it is likely to generate, despite even a moderately depreciating currency, said Bhavesh Sanghvi of Emkay Wealth Management
Mon, 17 Jun 2019 15:14:34 +0530


#39;Sticking to largecaps safer than betting on midcaps till Budget#39; The major trend is bullish and the minor trend for Nifty is sideways. For next week, the Nifty is expected to consolidate in the range of 11,750-12,000, said Romesh Tiwari, of CapitalAim
Mon, 17 Jun 2019 10:48:26 +0530


Despite its share price doubling in less than 3 years, Varun Beverages is only warming up Analysts are counting on the stock to unleash its true growth potential in India after the beverage major acquired PepsiCo franchise rights in West and South India.
Fri, 14 Jun 2019 12:02:53 +0530


Morgan Stanley overweight on 6 stocks which could return 6-49%; do you own any? In case of banks, Morgan Stanley believes asset quality and loan growth are expected to be strong which will drive their earnings going ahead, especially after facing problem on asset quality front for past several quarters.
Fri, 14 Jun 2019 12:02:26 +0530


Lalit Nambiar One should first start with the asset allocation. Based on risk appetite and investment horizons, one should allocate towards direct equity, equity MFs, debt MFs, FDs and physical assets like gold and real estate, says Lalit Nambiar of UTI MF
Fri, 14 Jun 2019 10:23:30 +0530


#39;Have realistic expectations from Budget 2019; fiscal spending to increase#39; Auto sector is facing a severe cyclical slowdown owing to overall weaker domestic demand, slowdown in NBFC lending and weaker global demand. Given the sharp correction in sales, it is possible the worst could be behind, said Ashutosh Bhargava of Reliance Nippon Life AMC
Thu, 13 Jun 2019 12:37:56 +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

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