EQUITY

WHAT IS EQUITY?

Equity as the name suggests is an equal partnership between several individuals. Buying an equity shares gives you a partnership with the promoter of the company. Hence, if you buy a share of Reliance Industries Ltd. you are entering into a business partnership with Mr. Mukesh Ambani. This relationship is governed by the Companies Act as well as SEBI rules. Hence standard rights and responsibilities are assigned to each partner.

We use the Stock Exchange Platform for investing in equity shares. During the trading hours you can buy the shares or sell them anytime during the day.

IS STOCK MARKET GAMBLING?

This is a wrong notion assigned by many. Gambling is a game of chance; Stock prices go up and down not because of chance but due to a systematic economic principle of demand and supply. Hence tossing the coin also follows a probability rule but assigning bets on flip of a coin is gambling. Stock market is a risk reduction mechanism. If your funds are lying in a bank the interest is so low that inflation will reduce the real value of income or if they are lying at home, someone may spend it for unintended purpose. Investments if done with proper advise and with knowledge can yield positive returns.

Remember, stock markets do not give easy money, lots of money or quick money. You must learn to earn

WHO IS QUALIFIED TO INVEST?

Every class of investor be it retail, corporates, NRI, Foreign investors etc are all eligible to invest

HOW TO INVEST?

  • If you do not have the time, take advise of regulated advisor, such as a Broker, research Analyst or a fund’s Manager.
  • For retail investors we have Investment Baskets, Mutual funds or various other investment options. to advise you if you are not familiar with equity investing.
  • NRI and HNI can invest in our PMS
  • You can invest directly in stock markets or through Mutual funds. Fund managers provide advise in mutual funds for a small fee

SAFETY

  • Equity investments are subject to Market risk. By market risk we mean price fluctuations. However long-term investment can considerably reduce the price fluctuation risk.
  • This is the safest form of financial investment since the fair price is obtained due to huge liquidity in markets with automated trading systems, Depository system gives you guarantee of ownership of your shares and Settlement systems provide guarantee of you payments . No other markets in the world guarantee fair price, quality of goods and guarantee of payments on sale.
  • Do proper research before investing
  • Invest at different price point/keep stop loss
  • Have long term view on investment
  • Have a target of returns and stop loss, exit the market when you desired return is reached same is true for stop loss . Never delegate the sale decision, only you know how deep your pockets are

LIQUIDITY

This is the most liquid class of financial assets. If you invest in listed securities, you can sell them any time during market hours. Settlement is done on T+2 basis hence you will get payment for you shares sold today

RETURNS

This is a financial asset class that has provided highest returns over a period. Returns averaged 12-18% on many occasions. Dividend is an additional source of income for shareholders. You returns come from difference in purchase price and sale price.

TAXATION

  • Dividends are subject to Tax at your applicable tax rate
  • Profits from shares held for more than one year are subject to long term capital gains tax of 10%
  • Profits from shares held for less than one year are subject to short term capital gains tax of 30% or less ( as per your tax slab)
  • Check our Tax tracker for information on your tax liability

REGULATORY FRAMEWORK

Companies are governed by Companies ACT and listed companies are under the supervision of Securities and Exchange Board. The rules are framed in such a manner that the interest of small and retail shareholders is protected. However, these entities only protect systemic risk. Risk arising out of price fluctuations is of the investor alone.

COST OF OUR SERVICES

Please look at our charges list for all our services

OWNERSHIP

You will have to open a Depository account to hold your shares. Check your account regularly to ensure your holdings balances are what they should be

RESEARCH SERVICES

Our company is registered Research analyst and we provide research services on daily, weekly and monthly basis.