This asset class has given higher returns, comparing to other classes. As long as growth is sustained, this is going to be like that.

Investment in Equities is generally done by two strategies one is trading with a short term view, the purpose of this is to generate profit based on price momentum and technical charts another for long term view, people take fundamental of company which is value and or growth oriented. This is like having a part of ownership of the company.

Strategy can be decided to get in day trading, delivery based, or have positions in Future & Options, depending upon up on if one wants to leverage the position or not.

 

Factors to be considered before investing into equities.
1). P.E ratio.
2). Book Value.
3). Any hidden wealth like properties.
4). Corporate governance.
5). Mergers & Acquisition and Technological break through, of the product or getting absolute.
6). Product demand & supply position & peer group activities.
7). RoE
8). Debt equity ratio
etc………

Favourable out look:

  1. Demographics;% of younger population to join work force .
  2. Domestic consumptions
  3. Democratic set up
  4. Corporate governance/results
  5. Sustained GDP growth

Risk factors: -
1). Political Situation (International & national).
2). International oil price.
3). Currency exchange rate.
4) International interest -----rates
etc……
 
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