RIGHT STRATEGY TO INVEST IN HIGHLY VOLATILE EQUITY MARKET "When we own portions of outstanding businesses with outstanding managements, our favourite holding period is forever." - A very deep and insightful thought by the most successful investor of the 20th century. Anyone who would have invested in Hawkins Cooker in 2007, and followed the advice of warren buffet by staying long on 1000 shares would have earned nothing but 2 million rupees in 2014. However, it is despite of the fact that the whole world was fighting with slow growth, unemployment etc. So, can it be generalized that staying long always earns huge profits? The answer is – obviously not. As if we look at the story of Abban offshore, Kingfisher, Unitech, Jai Corp and …show more content…
Global investors are regularly investing in Indian equity markets because of the business friendly approach of our Prime Minister Mr. Narendra Modi. Also global news like the policy changes, release of the various data in U.S. economy affects the Indian markets. To have a clearer idea, let us trace the some of the biggest rise and fall in Indian markets. In July 1990, Sensex touched the magical no. of 1000 for the first time in the wake of good monsoon and extraordinary industry performance. Few years later in June 2005 it ended up at 7000 points, after the news of settlement between Ambani brothers which boosted the sentiments of investors and then the huge crash of markets happened in 2008 when it reached to the level of 8500 points from 21000 points. The point here is that instead of investing in the books of the company we invest on the basis of speculation. Not only our retail investors but also the big institutional investors are afraid of booking losses, they want to earn as much as they can and as early as possible- this is where the root cause of the problem lies. If an informed investor would have looked at the books of Kingfisher in 2005, he could have easily figured out that the company will not sustain for long – the huge debt burden and the inappropriate business model will definitely drown the company sooner or later. What is the right strategy? Of course there is no panacea for all the investment risks, and no exact formula for
magnitude of these risks, this paper advocates for a more proactive solution. Active investing in
possible. So let it be known that bonds and mutual funds are safer and have less risk than
Major stock market indices globally are trading near the high levels of 2007-2008. Some countries like India have surpassed the previous highs of 2008, and are trading comfortably higher (^BSE, Jan 2008: 20,000 approx.; May 2016: 25,000
Extensive research has provided a preponderance of conclusive evidence that future long-term returns are a function of two critical determinants:
In order to gain an abnormal profit, we seek a stock with high volatility. Before the competition started, we did a lot of brainstorming, not just within us but within our university mates who also joined this competition. Through that, we learn stocks from various conglomerates group perform better and more volatile than others. We sort our list from Bhakti Group, Bakrie
In the stock market, the best stock investment strategies are usually the ones that have been proven reliable over a period of time and the longer the better. Sadly, in the investment industry, there are numerous vendors that recommend investment strategies based on everything from planetary alignment to harmonic price patterns making the decision on which approach to use incredibly difficult not to mention frustrating for many investors. Combine that with countless TV shows, newsletters, and "professional" advice, it can be next to impossible to find a strategy to help you achieve your investment goals. Fortunately, there are a few key investment approaches that have withstood the test of time and most of the great investors throughout history have used on of these approaches to some degree or another and, now, so can you.
There is always an inherent risk when financial investments are made. According to financial analysts and investment professionals, there is no such
It is important to understand and know the exact amount of risk to manage it efficiently. It is significant to draw a line as your cut-out point if the market trades to that level. The difference between your cut-out point and the time you enter the market is your risk. You have to accept such risk before you even make the trade and be psychologically prepared for it. If the loss is too much for you to bear then you must not process as you will be stressed out and unable to see the situation
VC is a type of private equity also a financing provided by firms to nascent-stage, emerging firms that are promising, show high growth potential (in terms of number of employees, annual revenue, or both). VC firms invest in these mentioned companies in exchange of ownership stake.
2) When the stock markets become volatile across many sectors, it is called a "correction." A correction need not mean losses, in fact, a good investment manager can ride these correction crests to emerge a winner in the market.
The growth of India countries has attracted various investment communities which include mutual funds, individual investor and finical institution. But Indian stock market does not received academic attention. Therefore this study investigates the impact of introduction of future trading on stock markets of Indian country. To study the impact of future trading on weak from efficiency of the stock market. To investigate the impact of future trading on stock
The global financial crisis of 2008 was the most severe financial crisis that the world had experienced since The Great Depression of 1930s. Due to the recession, the Foreign Institutional Investors (FII’s) had disinvested in the Indian market to meet their commitments abroad. This had lead to an increase in the supply of shares in the stock market without a similar rise in demand to offset it. The present study is aimed at showing that this lack of demand for shares in the stock market is one of the reasons for the stock prices to fluctuate in India. In India
Asian crisis – premature financial liberalisation and timing. Govt planning to improve investment qualities, create an enabling environment. India’s five yr plan – investment heavy plan in line with harrod domar model.
Unit II: The Financial System in India - Capital markets and money markets; new issues market; secondary market – Stock exchanges in India; Listing of Securities; Registration of Brokers; SEBI regulations; Guidelines for IPO; Recent Developments in Financial System in India.
The Indian capital market has witness impressive growth and qualitative changes, especially over the last two decades. In the fifties, sixties and most of the seventies, it was in a dormant stage when the investors were generally not familiar with, or inclined towards, the corporate securities. During this time, only few companies accessed the capital market. As a consequence, trading volumes were low during these years. The process of liberalization of the Indian economy since the early nineties has contributed to changes in the capital market scenario. The entry of