Equity Investing : How to excel

Equity investment strategies must be built while overlooking future risks and returns associated with the portfolio.We ought to change this strategy according to market conditions, and may use a blend of styles and strategies

1.Growth Investing : We focus on selecting companies which are expected to grow at an above-average rate in the long term, even if the share price appears high. Types of growth investments can include smaller companies, emerging markets, recovery shares, internet and technology stock.

• Growth investors focus on the future prospects of a particular company.

2. Value investing :We buy stock when the price is low and sell when it increases. We give attention to stocks that has touched its yearly demand zone and we believe there will be a turnaround in this stocks in the coming months. We don’t want to miss stocks that is at a discount to its fair value . 

• Value investors focus on whether the current stock price makes sense given the health of a particular company. Value investing is described as investing in great companies at a good price, not simply buying cheap stocks

3.Index Investing :Passive investing focusing on creating a portfolio of assets designed to match the returns of a market index. The assets held by the portfolio will be entirely defined by the components of the selected index. Over the long term, index funds have generally outperformed other types of mutual funds.Other benefits of index funds include low fees, tax advantages (they generate less taxable income), and low risk (since they’re highly diversified).

4. Long term investing :Buy and hold investing focuses on purchasing securities and holding these for a long period of time (usually many years) to achieve return. Companies with strong fundamentals , better management governance , futuristic products & innovation , monopoly stocks , consistent profit and sales growth also accounts for strong stocks with buy and hold outlook strategy