It is said that “Your choices define who you are.” The same holds true when it comes to investing in the stock market in India.
Are you an investor who has been continuously making losses despite remaining invested for the long term or a smart investor who understands the value of time and money and prefers investing using the professional guidance of a stock advisory company?
Investing in equities is can be highly risky or rewarding depending on your approach.
Becoming a successful investor is like taming a wild horse. The horse will initially try to throw off the trainer and sometimes even crush him or kick him. But if the trainer manages to stay put on top of the horse by holding it firmly eventually the horse calms down.
Just like a wild untamed horse, stock market volatility causes huge ups and downs. Investors who panic and exit their investors in the face of market corrections end up with huge losses whereas investors who remain invested in the right opportunities are the ones who create wealth.
Stock advisory companies in India can help an investor to invest in the right opportunities which can create wealth in the long term.
Few pointers to find the best stock advisory company in India:
Check the SEBI Registration of the stock advisory company
The first thing to check before subscribing to the advisory services of any stock market company is to check for its SEBI registration because only SEBI registered companies are permitted to give stock-related advice in India to investors.
Prior to 2013, SEBI registration was not a mandatory requirement for stock market advisory firms in India, and there were thousands of companies involved in the business of giving stock investment tips and recommendations. While some of those companies were fraudulent companies, some were fly-by-night operators who would shut shop after lapping up subscription fees from a large number of investors.
To put an end to these malpractices and protect the interests of investors, SEBI introduced Investment adviser and Research Analyst ACT in 2013, making SEBI registration mandatory for stock market advisory firms. The new norms introduced by SBI included mandatory KYC documentation and risk assessment of each client.
Check the accuracy of investment advice of the stock advisory company
The best way to know about the accuracy of investment advice provided by a stock advisory company in India is to ask for data of previous investment advice offered by the company. No stock advisory company in India can claim to provide 100% accuracy. So stay away from any stock advisory company in India which claims to do so.
Check if the stock advisory company has its own research team
The greatest strength of a stock market advisory firm is research. That is why an investor should opt only for a stock market advisory firm who has their own in-house research team. It makes no sense to subscribe to the services of a stock market advisory company that does not have their own in-house research team, and instead themselves rely on others.
To find out how the depth of research undertaken by the stock advisory services, ask for sample reports of stock recommendations. This can give you a fair idea about the intensity of research undertaken by the company.
If required, you may also consider visiting the office of the stock advisory company to get a first-hand feel about their office setup and research team. While this may not be always possible given the fact that there may be some geographical restrictions if the stock advisory company which you might be considering could be based in another city or town.
Check for references
Check for references from people who have used the services of a financial advisory company in India to get a clear idea of their services. Online reviews could be biased or fake and hence it would be better to personally talk to an existing subscriber of the financial advisory company.
You can also check for references among your friends, colleagues or relatives to get first-hand information from people who might have used the service of a stock market advisory firm.
Check the types of customer services offered by the stock advisory company
Finally, it is very important to check whether the stock advisory company offers dedicated support and easy accessibility because it reveals how serious they are about their client satisfaction.
It is important to check whether the stock market advisory company offers dedicated phone and email support? It is best to avoid those stock market advisory firms which offer only email support. Lack of phone support shows the lack of commitment on the part of the stock advisory company, considering the fact that it may not be possible to get a resolution of your every query by email.
Also, check if the firm offers complete handholding or only stock recommendation? Complete handholding means the stock market advisory firm offers not just stock recommendations but also exit recommendations and portfolio rebalancing as and when required.
Research & Ranking is a SEBI registered stock advisory company with four offices across Mumbai, Thane, Noida, and Bengaluru. We have an in-house research team with a collective experience of several decades. With an employee strength of over 100, we are well placed to take care of your investment advisory needs to ensure that your financial goals are achieved.
Till date, Research & Ranking has helped more than 15,000 stock market investors to achieve their financial goals by investing in a high conviction portfolio of 20-25 fundamentally sound stocks for the long term. You too can be a part of this growing tribe of serious value investors who understand the most effective way to create wealth from stock markets.
Check out the outstanding past performance of our model portfolio below:
Our model portfolio has delivered an exceptional 480% gains in 6 years as a result of our careful stock selection based on a multitude of factors including assessment of a company\’s overall financial health, consistency in earnings, competitive edge, demand, and supply as well as management pedigree. Further, our research experts also evaluate the future growth plans of the company and the management strategy to achieve the growth.
Recommendations made under our Mispriced Opportunities Strategy have also delivered phenomenal gains for investors looking to fulfill their near-term goals. Our stock picks such as Hero MotorCorp, Kansai Nerolac, Varun Beverages, Page Industries, and Endurance Technologies have delivered returns of 31%, 29%, 16%, 42%, 43% and 41% respectively in less than the duration of 6 months. Full details of this service can be viewed here.
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This article was last updated on 25/02/21