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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MFs pump over Rs 11,600-cr in equities in September; FPIs in sell-off mode The sell-off by foreign portfolio investors (FPIs) from the Indian equity markets has provided an opportunity to mutual fund managers, experts believe.
Wed, 10 Oct 2018 14:59:04 +0530


Chandan Taparia The Nifty IT index managed to surpass its 50 DEMA but remains near to its hurdle zone, says Chandan Taparia of Motilal Oswal Financial Services
Sun, 16 Dec 2018 10:14:37 +0530


Uttaresh Venkateshwaran LTCG, PNB scam, US-China trade war and MF reclassification are among the events that impacted the market this year.
Sat, 15 Dec 2018 11:18:36 +0530


Siddharth Sedani It is important to have a stable government at the Centre which will be able to implement the much-needed reforms for the Indian economy to keep growing at fast pace
Fri, 14 Dec 2018 08:47:15 +0530


Upbeat on consumption stocks, corporate banks; cautious on NBFCs: Enam Holdings Enam Holdings#39; Sridhar Sivaram said they are long on financials because there is lot of room for monetary easing.
Thu, 13 Dec 2018 13:17:45 +0530


Morgan Stanley sees Sensex rising 20% in 2019; bets on these 8 growth stocks Ridham Desai Sheela Rathi expect FPI flows to improve in 2019 after they turned net sellers in 2018
Thu, 13 Dec 2018 10:09:04 +0530


No issues with liquidity; mutual funds thriving now: IDFC MF The market is expecting easier fiscal and pro-growth policy from the new RBI governor Shaktikanta Das, said UBS Securities#39; Tanvee Gupta Jain.
Wed, 12 Dec 2018 14:00:10 +0530


Investors#39; mood towards emerging markets still grim, negative: Deutsche Bank Significant upside in the Indian market will be limited due to the political risks related to the upcoming Lok Sabha elections,
Wed, 12 Dec 2018 12:48:48 +0530


Invest in index funds, avoid thematic funds amid volatility: experts Kalpen Parekh of DSP MF advised investing in index funds provide better returns
Tue, 11 Dec 2018 16:09:42 +0530


Here’s what to expect from the markets in 2019 NULL
Tue, 11 Dec 2018 15:59:19 +0530


State election results out of the way: 10 stocks that could give 18-50% returns in a year Largecap and quality midcaps are a better bet at current levels. In terms of sectors, investors can look at banking, insurance, AMC companies, IT and retail-oriented stocks
Tue, 11 Dec 2018 13:33:45 +0530


Market to remain choppy till final results are out: Experts Siddhartha Sanyal, Chief India Economist, Barclays, said after today#39;s results, the market would focus on the upcoming Lok Sabha polls.
Tue, 11 Dec 2018 13:24:35 +0530


Raamdeo Agrawal Raamdeo said the market corrected and a lot of negative in local or global is already priced in
Tue, 11 Dec 2018 13:12:43 +0530


Nilesh Shah He believes the market looks better as long as oil is softer, interest rate is softer which will support corporate earnings and economy
Tue, 11 Dec 2018 11:49:57 +0530


Market waiting to see who govt picks as Urjit Patel#39;s replacement: JPMorgan #39;Urjit’s appointment was seen as a continuation of Raghuram Rajan’s policies and we saw risk premium getting contained,#39; said JPMorgan#39;s Jahangir Aziz.
Tue, 11 Dec 2018 10:58:42 +0530


Udayan Mukherjee Next couple of days will be dominated by the news of RBI and elections results, followed by focus on global setup, said Udayan Mukherjee
Tue, 11 Dec 2018 10:47:29 +0530


Neogen Chemicals files IPO papers with Sebi The initial share sale comprises fresh issuance of shares aggregating up to Rs 70 crore and an offer for sale of up to Rs 29 lakh by the company#39;s promoters, according to the draft red herring prospectus (DRHP) filed with Sebi.
Tue, 06 Nov 2018 18:26:14 +0530

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