Frequently Asked Questions
Global economy is now more interconnected & interlinked than ever before. Oil prices, currency exchange rate, monetary & fiscal policy, legal & environmental obligations, political stability, industry growth, business model, quality of management, pricing pressure etc largely influence (either support or suppress) the growth of the entire industry or of a company in general.
It is therefore imperative to develop a deep insight of Economics (Global and Indian) together with Industry & Company analysis (Technical & Fundamental Analysis) to be successful in equity investment. Once developed, this knowledge benefits all types of investment – Long Term (a year or more), Medium Term (weeks to months) and Short Term (few mins to few days)
All above are investment vehicles intended to provide growth in investment. The different lies in the risk and rate of return associated with them. Fixed income instruments (FD’s) provide high security of invested amount but provide low returns. As the risk associated increases the opportunity of return increase. MF provide more returns than Fixed income instruments, equity investment provides highest return potential but the risk also increases proportionately. Acquiring knowledge and information about equity investment reduce the risk leading to high growth investment.
Most tips are provided without any thorough analysis and study of market, one cannot trace the source of such tips. But at times some tips are backed up by genuine analysis which give good returns. So it’s not completely wrong to invest on basis of tips, the problem is how to identify which tip is worthy and which isn’t? Also, how much you can rely on tips? You might invest 10000 Rs on tip but will you invest 10 Lac? Long term wealth creation is a continuous process which require hard work and dedication. Its not about speculation and uncertain gains. Hence it is always advised recommended to acquire knowledge first and then practice investments
Having basic understanding of share market always helps, but even if you don’t have any first-hand experience its perfectly fine. The workshop covers all essential aspects of equity investment along with basics to advance level.
There are two school of thoughts behind equity investment. Fundamental Analysis (Considers state of economy, performance of sector and company before taking investment decision) & Technical Analysis (Study of charts, pattern, indicators and oscillators, behavioral analysis of buyers and sellers). Fundamental analysis is beneficial for long term investors whereas technical analysis suits short term investment decisions (one week of less). Third aspect of research and analysis is the most crucial and is now considered by many retail investors. A right combination of fundamental, technical & research based analysis is the key for successful investment. Further developing strategies to ensure portfolio growth & safeguarding profits are the most important aspects in equity investment.
Mutual funds are managed by experienced fund managers who invest on behalf of the investor. Return on investment varies from funds invested. One can expect an average return of 12 to 15% in MF. Managing equity investment directly can give handsome returns. One should first acquire sound knowledge of fundamental, technical, futures and options first. Depending upon individuals need, time available and knowledge the right alternative can be chosen.
Yes, you can. Internet has revolutionized access of information from select few to almost all. At the same time, this infinite information often confuse an investor. Further the authenticity of information provided is always under question. Hence building a strong foundation always helps. Share market analysis and research based training intend to do exactly the same.