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Direct Equity

Direct equity investment can be a rewarding avenue for wealth creation, but it comes with high risk. It demands deep understanding of not just stocks, but the underlying business and the entire industry it operates in. Investors must evaluate a company’s historical performance, financial health, management track record, and the broader economic and geopolitical climate before committing capital.



Types of Equity Stocks

Growth Stocks are shares of companies that are expected to grow at a rate significantly above the market average. These companies typically reinvest their profits to expand, often paying little or no dividends.

Value Stocks are shares trading below their intrinsic value, often due to temporary challenges or market overreaction. Value investors look for strong fundamentals and the potential for long-term appreciation.

Large Cap Stocks represent companies with a large market capitalization and stable performance. These are usually well-established firms and are less volatile compared to mid or small caps.

Mid Cap Stocks belong to companies that are in the growth phase, with higher return potential but also higher risk. They often outperform large caps in bull markets but are more sensitive to downturns.

PSU Stocks refer to companies owned or majority-owned by the Government of India. These may offer steady returns and dividends, but can be influenced by policy decisions and bureaucratic inertia.

MNC Stocks are shares of multinational companies operating in India. These firms often bring global best practices, strong parentage, and less volatility, appealing to conservative equity investors.



Benefits

✔️High Return Potential — Direct equity offers significant upside if investments are made wisely and held with discipline

✔️Ownership in Businesses — Equities give investors partial ownership in companies, aligning their fortunes with business performance

✔️Beats Inflation — Over the long term, equities have historically outperformed inflation and other traditional assets

✔️Diverse Investment Options — With access to different sectors, styles, and company sizes, equities offer room for both aggressive and conservative strategies