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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Himadri Buch Venkatesh mentioned that systematic investment plans have continued to show an upward trend despite volatile markets.
Thu, 21 Feb 2019 16:47:14 +0530


Himadri Buch The company in January 2019 had reported exceptionally good results for the December 2018 quarter.
Sat, 26 Jan 2019 15:14:11 +0530


Upbeat on capex companies and some commercial vehicle players: DSP Investment Based on earnings, valuations have come to long-term averages, so the risk-reward looks favourable for Nifty stocks, said DSP Investment#39;s Gopal Agrawal
Thu, 21 Feb 2019 15:45:38 +0530


After Q3 earnings, 3 banks make it to Motilal Oswal#39;s list of 10 focus stocks The domestic brokerage firm expects the Nifty EPS to grow 9 percent in FY19 and 27 percent in FY20.
Wed, 20 Feb 2019 09:51:35 +0530


Markets are volatile because due to macro and political headwinds: Max Life Insurance "It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
Tue, 19 Feb 2019 15:59:25 +0530


Markets are volatile because due to macro and political headwinds: Max Life Insurance "It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
Tue, 19 Feb 2019 15:59:25 +0530


Jayant Manglik The rupee has witnessed volatile swings over the last few days on the back of on-going US-China trade talks, volatile crude oil prices, outflows from domestic equities and rising dollar index
Tue, 19 Feb 2019 12:17:31 +0530


Shubham Agarwal Nifty Options data for the week shows that in monthly expiry, Call writers gained strength at 10,800-10,900 strike while Put writers stay firm at 10700 strikes
Mon, 18 Feb 2019 13:49:50 +0530


Akash Jain The strategy at present should be to invest in a phased manner only in companies that are not connected to any political party, have a robust business model, strong earnings and cashflow visibility
Mon, 18 Feb 2019 11:03:24 +0530


Shabbir Kayyumi Majority of the momentum oscillators are in oversold zone creating the possibility of a bounce back.
Mon, 18 Feb 2019 09:06:49 +0530


Sumit Bilgaiyan It is time to apply bottom fishing strategy with capital protection approach. One should invest in 4-5 parts till election results are announced.
Sun, 17 Feb 2019 13:12:00 +0530


US retail data indicates economy is in recession: Andrew Holland With regards to financials, he said he still likes private banks.
Fri, 15 Feb 2019 14:27:32 +0530


Siddharth Sedani Global events and news flow will influence the market as market players will closely track on any news related to Brexit, US–China trade talks and crude oil prices
Fri, 15 Feb 2019 13:11:15 +0530


Market not overvalued, midcaps and smallcaps are cheaper now: S Naren "Baring the PSU pack, the rest of the market is fairly valued and it is better to invest systematically," said Naren.
Thu, 14 Feb 2019 15:29:20 +0530


Current financial situation fragile, says Uday Kotak "After the ILFS episode, #39;inter-connected exposures#39; is a concern for markets," said Kotak.
Thu, 14 Feb 2019 15:16:55 +0530


#39;Breakdown below 10,700 may trigger short-term bearishness in the market#39; Going forward, 10,700 is expected to act as crucial support for the Nifty, and any fall towards 10,700 may get bought
Thu, 14 Feb 2019 09:38:39 +0530


Expect first six months of 2019 to be extremely volatile: Avendus Capital Once the elections results are out and market takes cognizance of that, the earnings recovery should be pretty strong, said Vaibhav Sanghavi, co-CEO of Avendus Capital.
Thu, 14 Feb 2019 09:28:10 +0530


Neogen Chemicals gets Sebi#39;s go ahead for IPO With this, the total number of company getting Sebi#39;s clearance for the public issues -- initial public offer (IPO) and follow on public offer (FPO) -- has reached to seven, so far in the new year.
Tue, 12 Feb 2019 11:25:06 +0530


Reliance General Insurance files for IPO The IPO will also include an offer by Reliance Capital to sell up to 79.5 million shares, Reliance Capital said.
Tue, 12 Feb 2019 10:30:01 +0530


New Listing: Chalet Hotels lists at a premium of 4% at Rs 291 The initial public offering of Chalet Hotels, which owns, develops and manages high-end hotels in key metro cities in India, was subscribed 1.57 times on the last day of bidding on Thursday.
Thu, 07 Feb 2019 10:03:45 +0530


State-run MSTC files IPO papers with Sebi The initial public offer (IPO) will see sale of 17,600,000 shares, amounting to 25 per cent stake, of the company through the offer for sale (OFS) route by the government, the draft prospectus filed with Sebi showed.
Mon, 04 Feb 2019 13:22:07 +0530


Chalet Hotels IPO subscribed 1.57 times on last day of bidding The initial public offering (IPO) to raise about Rs 1,641 crore received bids for 6,49,07,563 shares against the total issue size of 4,13,26,672 shares, as per NSE data till 1800 hrs.
Thu, 31 Jan 2019 20:06:04 +0530


Chalet Hotels IPO subscribed 28% on second day of bidding The IPO, to raise about Rs 1,641 crore, received bids for 1,16,68,957 shares against the total issue size of 4,13,26,672 shares, according to data available with the National Stock Exchange (NSE).
Wed, 30 Jan 2019 19:18:06 +0530


Subscribe to Chalet Hotels Ltd: ICICI Direct ICICI Direct has come out with its report on Chalet Hotels Ltd. The research firm has recommended to "Subscribe" the IPO in its research report as on January 29, 2019
Tue, 29 Jan 2019 15:42:20 +0530


Chalet IPO opens for subscription: Top 5 things you must know It operates five hotels, including a hotel with a co-located serviced residence, located in the Mumbai Metropolitan Region, Hyderabad, and Bengaluru, representing 2,328 keys, as of March 31, 2018.
Tue, 29 Jan 2019 11:54:54 +0530


Chalet Hotels#39; Rs 1,641-crore IPO opens today; should you subscribe? We recommend investors to Subscribe for the Long term on the issue, said Hem Securities
Tue, 29 Jan 2019 11:29:39 +0530


IPO: Chalet Hotels allots equity shares worth Rs 492.35 cr to anchor investors Chalet Hotels Friday announced a Rs 1,600-crore initial public offering which includes issue of fresh equity and also sale by promoters.
Mon, 28 Jan 2019 22:56:04 +0530


Subscribe to Chalet Hotels Ltd: Choice Broking Choice Broking has come out with its report onChalet Hotels Ltd. The research firm has recommended to "Subscribe" the IPO in its research report as on January 28, 2019
Mon, 28 Jan 2019 13:20:52 +0530

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