Stock Advisor: For High Growth & Better Risk Management
Aug 17, 2018 | 17:01 PM IST
Aug 17, 2018 | 17:01 PM IST
Stock investment is messy. Yes, there is a big growth potential but if you are doing it on your own and you don't have the experience of fundamental analysis, it can be an uphill task. That is one of the reasons why most of the investors who understand the potential of equity, invest in the equity mutual funds instead of direct equity. A mutual fund is an ideal solution but it still falls short to match the towering growth potential of direct equity investment. Even the best of the best mutual funds can't give you more than 16% annualised returns. That's good enough but in direct equity, some stocks can comfortably surpass the best performance of the best mutual fund.
So how to invest in stocks with the growth assurance? The answer is stock advisor.
Do You Need A Stock Advisor? Lets Find Out
Stock investment plays a huge role in building a handsome corpus. If you choose right investment avenues you will get good value. Unfortunately, a majority of people don't make right choices. They waste their money as well as time by investing in mediums which cant give inflation-adjusted growth.
There are two ways of investing in equity - mutual funds and stock investment. It can't be said conclusively that one method is better than other. With the help of a good stock investment advisor you can get the best of both the worlds.
The mutual fund route to equity is easy. You have to find the best performing fund and start investing it on a long-term basis. The only challenge that you might face is that there are a lot of funds and often with confusing names. The best way to go about this challenge is to go for regular funds through a mutual fund distributor. This way you can nullify the risk of choosing a wrong fund.
The bigger challenge is to find an ideal way to invest in the stock market through which you can minimise risk (if not, totally nullify).
If the only roadblock is research and analysis of stocks, that can be easily taken care of with the help of a stock market advisory firm. Signing up for a good, SEBI registered advisory company is like hiring a personal share advisor. Following are some of the features of a stock advisory firm.
A stock advisor can bring a lot of value to your investment portfolio. Here are the highlights of what an stock advisor can offer.
Pick The Best Stock At The Right Time
The stock market is huge. All sort of stocks ranging from blue-chip stocks, midcaps to small-cap are listed on both the indexes i.e. BSE & NSE. To find the stocks which are good and will perform well in the future needs skills. One has to separate quality stocks from the overwhelming junk that occupies most of the space.
To identify the best stocks with the best prospects one needs years of experience and top-notch analytical skills. Naturally, not everybody has the financial acumen to do their own analysis. Thus, it makes sense to sign up with a good share market advisory firm as genuine, well-researched stock advice it will heighten your chances of getting good returns from the stock calls provided by their research analysts.
Build An Investment Plan To Meet Your Financial Goals
The work of an advisory firm is not only limited to finding undervalued stocks for their clients. They assume a bigger role of designing an investment plan which perfectly complements the financial goals of the clients. Every individual has a long-term and short-term financial goals and they have to manage their money wisely to meet these goals. An advisory firm plays a key role in giving goal-based clarity to their clients with short-term and long-term stock calls. They also provide answers to difficult questions like 'where to invest', 'how much to invest', etc. Providing customised investment plan is the salient feature of a sebi registered stock advisory services.
Tried & Failed? Get Your Existing Holdings Reviewed From Experts Equity Advisor
Usually, every person who knows the potential of equity, in the beginning, tries to manage his stock investment on his own. Only to realise that it's too complicated to handle. When such people turn to an advisory firm they already have some stock holdings. The good thing is that advisory firms offer the service of reviewing your existing holdings. Through this exercise, it becomes easier to do away with bad investments and build on good investments, it there are any. From here onwards an advisory takes an active role. They keep a close eye on all the open calls and give periodical updates of what to hold and what to let go. It is critical because any form of investment needs to be monitored on regular basis to understand its performance and growth.
If we are discussing the importance of a stock advisor it is natural to extend the discussion to the outfit which employs the stock advisor - a stock advisory firm. A stock advisor can be a freelancer or employed with a firm. Not not the point which one is better but there are certain advantages of availing the services of a firm. Lets shed some light on some of them.
Advantages Of Stock Advisory Firm
Signing up for the services of a stock advisory can make your life a lot more easy and rewarding. Here are some of the highlights of getting professional help to manage your portfolio.
Highly Skilled Management
An advisory provides a professional management of portfolios with the objective of achieving steady long-term performance while managing risk.
Regular Performance Tracking
The portfolio managers understand the dynamics of equity as an asset class. Therefore they are the best people to be in control of your investments with the focused view of maximizing the profits.
Being professionals, you can expect highly thought out investment strategy which acts as a guiding principle in establishing your investment universe. Also, apart from the working knowledge of the market, PMS providers are well-equipped with state-of-the-art portfolio management software and technologies that help the buying/selling, monitoring and the risk management processes.
Highly Convenient For Retail Investors
Managing your own portfolio can be a hack of work. You have to keep track of many things. At the same time, there are many things which can potentially have an impact on your investment. The best part of an advisory is that it relieves you from all the day-to-day hassles of stock investments. On top of that, you get all the updates through periodic reports on the performance and other aspects of your investments.
The core of an advisory is that your investment decisions are taken by the best stock advisor on your behalf. But that doesn't mean you are not in control of your investment. To make your experience fully transparent, the advisory firms shares regular account statements and performance reports with you. Not just that, you get the web access of your portfolio which enable you to track all information in real time. With portfolio access, all your investments and statements are just a click away, literally. You also get half-yearly and yearly reports for tax filing.
A Relationship Manager At Your Service
To build a smooth line of communication with any agency it is important to have a single point of contact. Portfolio Management Service providers assign dedicated relationship manager to all their clients. This helps to personalised service and to understand the financial goals of every individual. The relationship managers make sure that you get periodic updates and account performance reports on time.
Extremely Personalised Service
You get personalised service as you get direct access to professional stock analysts and money managers who actively handling your portfolio. You are always in the know of all the investment strategies employed for your account. This interaction may come in different forms including in-person meetings, conference calls, etc with the fund management team.
Get Insightful Research Reports For Investment Rationale
One of the best qualities of an advisory firm is that all every stock call comes with a research report which carries in-depth study of the fundamentals of the proposed stock. It explains all the positives that the analysts see in a company. It's an important document which helps subscribers understand the investment rationale. The key constituents of a research report are the analysis of the market capital and management of the company, financial ratios of the stock, YoY sales and margin growth, debts of the company, etc. These details help investors get an insight of the company and its growth prospects.
Customised Service Experience
One of the key features of a share advisory company is that they provide a personalised experience to their clients. Most of the firms let their clients interact with the stocks analysts for stock suggestions and strategy discussions. This helps to understand the needs of the clients and to design the best investment plan to meet their short-term or long-term financial goals. Furthermore, you get an expert advice on all your queries related to investment.