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How An Investor Should Be Careful While Choosing The Stock Advisory Services In India?

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How to Choose Stock Advisory Services in India Carefully as Investor - FY22
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Stock Advisory Services In India: Expert advice can make a huge difference between success and failure in any field of life. Stock market investing is no different. That’s why it is important to invest in the stock market under the expert guidance of a stock advisory service.

By investing through a stock advisory service you can ensure that you are investing in the right opportunities for wealth creation while minimizing your risk to the lowest level.

However one should be very careful to choose the right stock advisory service. There are thousands of stock advisory services in India. Many of them are just fly-by-night operators and are not even registered with SEBI which is a mandatory requirement for stock advisory services in India.

Pune-based Rajesh Desai is a conservative investor, whose investments were doing quite ok, giving him an average compounded growth rate of 10-12% every year.  A few months back he started getting calls from an equity research firm based in Indore, Madhya Pradesh promising him annual returns of 30-35% on investment based on their stock market recommendations.

Rajesh decided to give it a try after checking out their website. He did not suspect anything wrong after all the website looked genuine and there were ads on it endorsed by popular TV celebrities. Rajesh decided to subscribe to the basic package of the stock advisory service for Rs.10, 000.

But just a few months after investing in the stock recommendations suggested by the stock advisory service, the value of his investments fell by as much as 40%.

Unable to digest this huge loss, Rajesh decided to call up the number of the stock advisory service to check. However on calling he got a message that the number was switched off. He decided to try the other numbers listed on their website. The phone kept ringing but nobody answered his calls. Frustrated and clueless what to do next, Rajesh regrets his decision to go for the service of the particular stock advisory service.

Rajesh is not alone, there are lacs of investors, especially the new ones who fall victim to the trap to fraudulent stock advisory services in India, whose only aim is to make money with the subscription fees.

Important Points To Consider While Choosing Stock Advisory Services In India

SEBI registration

The first and foremost thing to check while choosing stock advisory services in India is SEBI registration. It is a mandatory requirement for stock advisory services in India and those firms registered under SEBI operate strictly under the strict SEBI guidelines. Hence there are very low chances of taking a customer for a ride.

Past performance

Past performance of a stock advisory services in India is no guarantee for future performance. However it will still give you a fair idea of how accurate the recommendations of the stock advisory service is. It is strictly recommended to avoid equity research firms in India who claim 90-100% accuracy in their stock recommendations.

Check for reviews

The best way to evaluate a service is to check it with its current and past users. Facebook and Google reviews of the stock advisory services in India will give you a very good picture of their service.

Ask for details of the research team

Any stock advisory services in India who is serious about their business should have their own in-house research team. Hence before choosing any stock advisory services in India, it is important to check the same and the kind of experience they possess.

Dedicated support matters

Any stock advisory services in India which mean a business should have a dedicated support team available on phone and email to help you with your queries or for recommending rebalancing strategies for your portfolio during market corrections.

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Read more: About Research and Ranking

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