Investing in the equity market is not easy. Putting your money directly in shares may seem rewarding, but it has its risks. It takes intense research and analysis to study individual companies and figure out their value. That is why the common retail investor opts to go for Top Mutual Funds. Let us list down the reasons why it is tough to invest directly in shares.
Knowing in and out of the company – It takes hours and hours of studying the industry of which the company is a part. You have to study market reports, press releases and annual reports carefully.
Understanding Macroeconomics – Apart from studying individual stocks, you have to be aware of the existing economic conditions as well. It includes the country’s monetary policies, currency rates among other factors. It takes a lot of work and study to understand the numbers.
Understanding debt value – A company’s debt position is also a leading indicator of how the stock is going to perform. It is important to understand the relationship between the two. Most amateur investors are simply not aware of these.
It is not a one-time thing- You have to monitor your investments carefully and re-allocate the funds in case circumstances change. To manage all of this with regular day jobs is a daunting task.
If you still want a slice of the growth in equity, you can for equity MFs. You will get trained and experienced managers who pick your stocks. Not only that, your investments will be spread over tens and thousands of stocks. You can even get help to compare Mutual Funds in India from professional advisors.
Knowing in and out of the company – It takes hours and hours of studying the industry of which the company is a part. You have to study market reports, press releases and annual reports carefully.
Understanding Macroeconomics – Apart from studying individual stocks, you have to be aware of the existing economic conditions as well. It includes the country’s monetary policies, currency rates among other factors. It takes a lot of work and study to understand the numbers.
Understanding debt value – A company’s debt position is also a leading indicator of how the stock is going to perform. It is important to understand the relationship between the two. Most amateur investors are simply not aware of these.
It is not a one-time thing- You have to monitor your investments carefully and re-allocate the funds in case circumstances change. To manage all of this with regular day jobs is a daunting task.
If you still want a slice of the growth in equity, you can for equity MFs. You will get trained and experienced managers who pick your stocks. Not only that, your investments will be spread over tens and thousands of stocks. You can even get help to compare Mutual Funds in India from professional advisors.
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