- Investment in Equity Market
Investment in stock market is risky by nature but by far the most rewarding market
for an investor. Let us guide you through historical evidence of returns through
equity investing. The following table shows the returns (average, minimum and maximum)
for different holding periods carried out since creation of Sensex till year 2010.
EQUITY RETURNS
|
|
Holding Period (yrs) |
Average return (%) |
Min Return (%) |
Max Return (%) |
|
1 |
25 |
-47 |
267 |
|
5 |
19 |
-5 |
53 |
|
10 |
17 |
-2 |
35 |
|
15 |
18 |
12 |
27 |
|
20 |
17 |
14 |
20 |
|
25 |
18 |
17 |
19 |
|
Source: Sensex returns from beginning till 2010
|
What it shows that for shorter duration of equity investment, the minimum and
maximum returns vary widely however longer you hold equity investment, the difference in
minimum and maximum returns reduces and provides stable returns. This means it rewards
the long-term investor with handsome average returns.
- Types of Investors
Long Term Investors - Timeframes vary from person to person but generally investors
who have investment time range of 5 years and above are considered long term investors.
Short Term Investors - Normally investors with investment holding time range of
1 to 4 years are considered short-term investors. Traders - Are those who
hold investment for less than a year.
- Why equity benchmarks are important?
Equity benchmarks represent the unified view of large industries of any country.
Two major indexes of Indian equity are Sensex (Designated 30 large capital stocks)
and Nifty (Leading 50 diversified industry stocks). Whether the benchmark
is Dow Jones, FTSE, CAC, DAX, or Nikkei, these benchmarks in a way indicate the
economic state of any country and help any outsider compare the investment returns
viz-a-viz other countries.
- How to find quality money making stocks?
There are many ways to find quality stocks such as reading and analyzing annual
reports of the companies or doing technical analysis. Even after spending such time,
finding quality stocks does not mean it makes you money. Neither you have time nor
resources to find and chase the market on daily basis. MySmartStocks.com
is your answer - without much resources of yours, you simply visit MySmartStocks.com
and punch in your own parameters to find those winning stocks. MySmartStocks.com
allows you to define your own analysis time range and comparison time range to separate
quality money making stocks.
- How to control and select stocks?
There are two controls MySmartStocks.com provides-
- Stronger than Sensex
Stronger than Sensex - Survival is one of the foundations of MySmartStocks.com
to consistently detect only those winning stocks during market peaks and crashes.
You select proper Sensex peak date and two crash dates where you find survival
very important for your financial health. We provide you with such historic dates
from Jan 2008 to select from.
- Quality filter
Quality filter – Performance is another foundation of MySmartStocks.com to separate
winners from the laggards. Higher the number, higher the quality and smaller number
of winning stocks.
Based on your Survival and Performance parameters, there are many reports that users can benefit from and accordingly invest in winning stocks.
- Are you a Wise Investor?
There are three essential things a wise equity investor needs to do-
a) Periodically monitor his/her portfolio b) Take desired profits
c) Reshuffle the holdings as necessary By regularly visiting MySmartStocks.com,
investors can stay with the pulse of the market and their equity investments.
- MySmartStocks.com User Guide