Equity Trading

Equity Investments

Learning the correct way for investments into direct equity is an art that every investor must develop over his/her lifetime. Although, the equity market is risky when compared to other investment products, it has the potential to generate the best returns in the long term.

To demonstrate what we have stated above, take a look at these examples from the stock markets (given below). These are just a handful out of numerous companies that have given such returns. The last column of the table below depicts the result of a hypothetical INR 100,000 invested in any of these companies over the stated time period.

Name of Company	Start Date	Start Share Price	End Date	End Share Price	CAGR	Future Value of 1 Lac
Supreme Industries	1/1/2007	44	31/12/ 2016	740.75	36.85	16.8 Lacs over 9 years
CRISL	3/1/ 2005	54.7	1/1/2015	2095	43.99	38.3 Lacs over 10 years
Bosch	1/1/2004	1350.7	1/1/2015	23824	29.81	17.62 Lacs over 11 years
Page Ind.	1/1/2008	451.95	1/1/2015	11795	59.36	25.7 Lacs over 7 years

Direct Equity Investment

Investing into equity means to purchase stocks of listed companies on the exchange. It is a highly rewarding channel of investments, but on flip side it carries a lot of risk. The market is very dynamic and there are numerous variables effecting the price movement of stocks. Yet, this risk can be significantly negated by extensive and targeted research.

Many of you would like to invest in equity too, but stay away due to the risk involved. In this market it pays to invest in research. It is prudent to choose an expert to do the research since most investors don’t find the time to take out from their daily jobs.