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Our equity advice is based on strong in-house research Capability. We have an open architecture model and spend much time on researching and selecting the best stocks for our investors, normally with a 1-3 year investment horizon. We study and select the best companies and very closely monitor their fundamental parameters. These stocks are recommended to our investors based on their requirements and risk profile. We use a combination of top-down and bottom-up stock picking styles of investing.
We also maintain a model portfolio on a real-time basis which we use to benchmark our performance against select indices of the stock markets.
When compared to any other asset class, investing in equities is definitely riskier and also more demanding in terms of time. However, as it has been said, “higher the risk, higher will be the potential return”.
How an investor is benefited from buying a share?
When an investor buys a share he is benefited in three ways:
By distribution of dividends – Dividends is distribution of companies profit among its shareholders. The dividends He’s decided by the board of directors of the company
Increase in capital – High growth companies rarely give dividends because they re invest all profits to help sustain growth. The company’s growth is directly on the share price as companies grows the share price also grows.
Bonus Issue – Sometimes the company decides to allow additional shares for free to a shareholder the issue Is a bonus issue. Company does these instead of distributing dividends to its shareholders.