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.