Say "YES" to direct equity If :
In my last article I put some point across " Say no to equity "
Now on the request
from our one reader - " Kirams " , I am writing this article.
Equity is a good asset class accepted world wide it has a
very good potential to create wealth.
You can directly invest in it if you qualify following
conditions.
* The goals for which you are planning to invest
inequity are not less than 10 years.
* You have a strong fundamental research of the
company : There are many parameters which are used for fundamental analysis of
company like P/B ratio , Debt / Equity ratio , Liquidity ratio , Sales ratio ,
Profit ratio , product range , Client base etc.
* Sector information: The sector company belongs
to , you should study it thoroughly , you should know what is happening in that
specific sector because naturally your investment is also going to have impact
of sector performance.
* Company’s operations : Now the companies are
becoming global they have their operation as well as manufacturing across the
world , you have to keep a watch on the trends in countries of operations for
your selected company.
* Management decisions : You should know what are
the decisions management is taking on the well being of organization as well as
how strong the management is to take the corrective action if to be taken.
* You should know the effect of the policy change
effect on the company happening in the countries of operations.
* You should have a clear cut stop loss and book
profit triggers and should be implemented.
* You should be in position to keep away yourself from
the fear and greed in the financial market, have a strong belief in your
strategy and decisions.
* Remember that days had gone where you have to
invest in Bluechips and rest assure that you will get best returns now the
market is very volatile and expected to remain like this only in near future.
All the best.
About the author :
Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families.
Can be reached at arbfinancials@gmail.com or Cell : 08793107044
