The stock market has been one of the most favored financial investment sectors that ensures meeting long-term goals.
Proficiently equipped to provide a large group of investors with numerous benefits to meet their future financial objective, investment in stock market plays a crucial role in meeting the financial planning of traders.
Due to the inclining inflation, it is generally difficult for individuals to save some amount from their regular income and build wealth, insure their health and plan for the future. Investing in stock markets and getting the desired returns, however, is subject to market conditions and is not everyone’s forte.
Compared to other investments plans – fixed deposits and bonds, investing in stock is rightly considered as an excellent choice, where the possibility of greater return within a short timeframe is higher, when weighed against the others.
A wide range of financial instruments are available today in the stock market that includes – derivatives, mutual funds, shares, and bonds. The flexibility, benefits and annual return provided by the stock market with diverse investment portfolios mitigate the risk of financial loss – only when invested in right stock with right knowledge and patience.
Here is where stock advisors come to the aid of laymen and the not-so-proficient ones in stock trading. Stock advisors or stock advisory companies guide the investor by conducting security analysis and/or managing their portfolio.
Cohering with the basics of stock market, namely – doing the required research, planning the trade, analyzing the stock graph, limiting the loss with stop-loss order, finding the right stock, and remain patient with the stock alleviate the inherent risk of stock investing, are what stock advisors are proficient in.
One such company that has created a dominant place for itself on the map of stock advisors is, Multibagger Securities Research & Advisory Pvt ltd. This is an advisory firm, embodied to identify Multibagger Stocks and multiply the wealth with prior focus on quality research. An ISO certified and SEBI Registered Investment Advisor – the company has expanded its reach from domestic to the international clients. Founder and CEO Manish Goyal is a Chartered Accountant of 2004 batch with a prosperous career in Stock Market Investing. He started as a Finance Manager in Ranbaxy Laboratories and after working for four years, he realized that his existing profession was not satisfying enough to create wealth as he visioned.
“What is the point in making money if I don’t have enough time to invest on myself?”
Therefore, carefully comprehending the value of time and money, he ventured into stock market as a primary career and utilized his valuable time in making money. Yearning to live quality life, it became vital to give inputs in the stock market.
The company took initiatives to mold the path of investors in a new direction of controlling finances – where they no longer need to work for money, rather turn the table of investment and stability in such a way, where money have to work for them.
Thus, this concept created a balanced surrounding for the firm and at the same time furnished the employees with valuable time to become productive, creative, and formative.
Multibagger found that Value investing approach is the best in stock market compared to other approaches like Technical Analysis or Growth story approach. In Value investing approach one has a lot of safety margin and downside risk is minimum. On the other hand, Growth stocks are comparatively more risky and Technical analysis-based stocks are scaled up as the riskiest. Therefore, after taking necessary approvals from SEBI, investment advisory business Multibagger Securities Research & Advisory Pvt was launched.
Incorporated in February 2017, Manish founded the with an aim of bringing quality in equity research and advisory field and plan to be among the top five equity research and advisory industry globally. With a major focus towards finding stocks which have potential to become Multibaggers, instead of looking for 30-40% returns, his team identified some really big multi baggers like Swiss Glascoat, Chaman Lal Setia Exports, KPR Mills, Mold-Tek Packaging, Maithan Alloys etc.
Also in 2017, the Indian Government’s trademark granted them with ‘Exclusive’ rights to use the word ‘Multibagger’– that means no other website/advisor can even use this word ‘Multibagger’.
Being a Value Investor/fundamental investor, the firm does not believe in Technical analysis because the charts cannot decide a company’s future. There are a lot of factors (PE, ROE, ROCE, Dividend yield, Debt Equity etc.) which can be utilized to establish whether a particular stock is undervalued or not. To get more ideas on investment, they started with a stock screener to filter out overvalued stocks and then researched to identify best and safest undervalued stocks. Currently, the firm is building on their strategies to become biggest wealth creator in terms of CAGR in next five years.
For Manish, the most important accomplishment has been making wealth for his friends and clients and he desires to have more such accomplishments in his kitty. Since happy minds are more productive and efficient, it is pertinent to provide good quality of life to employees. Realising this, Manish provided his employees with good work environment.
What makes the Multibagger team unique is that they choose people who have passion for research and investment. So, they enjoy their work, and this increases their efficiency and success ratio.
The clients had previously lost a lot of money in intraday and FNO trading due to the advice they received from their former advisors. Therefore, the Multibagger team received an array of emotional emails and messages from investors, mentioning that after going through its website and services, they experienced a sudden change in their financial life, shared the team.
It is need of the hour to consider the fact that in the last few years many well-known companies have nosedived due to corporate governance issues. The investor should be vigilant towards new developments taking place in the company, industry and economy. The stock market has changed a lot in last 15-20 years. Many new regulations, checks and balances have been brought about by SEBI to protect the interest of investors. Retail investors also have become more intelligent with the passage of time.
His advice to young entrepreneurs is to make stock market research more scientific and research based instead of news/noise based. Keys to Success in this business are transparency, integrity, and hard work. No fake promises should be made to clients and advice on investing should be given considering the client’s financial and social position. It is significant to carefully read, understand and follow all the guidelines and rules of SEBI for those who are looking to explore the sphere of stock exchange.
Plenty of free trading resources are available online today, where a lot of professional traders share their ideas and are willing to help seekers. Also, books can answer everything and there are thousands of books on trading that one must read before entering the stock market.
In his initial days at Multibagger Securities & Research Advisory, Manish helped many traders on social media and on the website with the little knowledge that he had gained.
Inspired and motivated with the investment approach of Warren Buffet, his enthralling mind uplifted the spirits of Multibagger to stick with Value investments, as Warren Buffet bought Coca Cola thirty years back and he is still holding it. Such examples of the legendary investor, encourages many of the young generation and insightful investors to follow the same path.
Stock Market Risks and Returns
The stock exchange bears the duty of assuring price transparency, liquidity, price discovery and reasonable dealings in such exchanging exercises. Holding fast to the securities exchange rudiments, like arranging the exchange, utilizing stop-misfortune and take-benefit triggers, doing the exploration and due intentness, showing restraint can altogether alleviate the dangers characteristic to stock investment and augment the profits on the speculations of share market.
Regardless of whether a financial backer gets a solitary offer in an organization, he gains a bit of possession in the organization. This proprietorship, thusly, gives investors the option to cast a ballot and offer his commitment in the essential development of the business. Albeit this may appear to be an exaggeration, it is factual and there are a few cases when investors have obviated the management of an organization from settling on adverse choices that are unfavourable to their growth and company’s interest.
Directed by the Stock Exchange Board of India (SEBI), it is their duty to regulate the stock trades, its advancement, and ensure the privileges of the investors of Indian stock market. This implies that when financial backers put resources into monetary items on the stock market their interests are all around secured by an administrative structure. This altogether helps in lessening the unethical and forged activities that are conducted by organizations.
Therefore, when planning to move ahead with stock investments, it is highly recommended to work with a skilled financial advisor who possesses a background of ethicality. Investing your money and time with such trustworthy and right licenced firms can assuredly help in making your plans and goals a reality.
A monetary advisor will work with you to get a total image of your resources, liabilities, pay, and costs. On the poll, you will likewise show future annuities and pay sources, project retirement needs, and portray any drawn-out monetary commitments. So, you will list all current and anticipated speculations, benefits, blessings, and kinds of revenue.
The contributing segment of the survey addresses more emotional themes, like your risk analysis and limits. Having a comprehension of your risk helps the consultant when it’s an ideal opportunity to decide your investment resource distribution. Now, you will equally be able to explain the consultant about your interests in investments.
A stock advisor is not simply somebody who assists you with your future goals; their responsibility is also to assist you with each part of your investment plan. You could work with an advisor without having them deal with your portfolio or suggest any long-term goal whatsoever.
It is significant for you, as the buyer, to comprehend what your advisor suggests and why. You ought not indiscriminately follow a consultant’s suggestions; it is your cash, and you ought to see how it is being invested. Watch out for the expenses you are paying—both to your advisor and for any stock that you recently invested in. It is always acceptable to ask advisors for what good reason they are suggesting such explicit investments, whether they are getting a commission for suggesting those stocks to you. It is also important to analyse the market graph and future possibilities without investing in any organization.
With the well-known quote of Warrant Buffet – “Only when the tide goes out, you discover who was swimming naked”, Manish express his view on the risky market of stock exchange, which could not be even predicted by the genius investors. Things may look incredible for some time. Stock advisors were lightheaded with excitement at the manner in which the stock value kept on soaring up. As soon as the tide went out, then the issues started to surface in the risky market.
Challenges and Growth Prospects
The utmost challenge faced by an organization in their initial days is to change the mindset of investors and molding it from gambling to investing. Majority of investors view stock market as a casino and immediately get involved in intraday trading or short-term trading to make quick money. Therefore, it is substantial to educate investors that stock investing is a revenue that yields with patience and it is important to take stock investing as a business instead of treating it as a gamble.
The biggest teacher in your life is always your own mistakes that you have committed on the early days of your life. It is after burning your fingers a few times in those starting years that one can understand through a lot of introspection as to why that happened and gradually find out a lot of ‘Dos’ and ‘Dont’s of stock market.
The most important lesson that needs to be learnt is – we should not focus on noise or herd mentality in the stock market, rather we should focus on fundamental strength of the business in which we are investing.
It is said that ‘Numbers don’t lie’, therefore, it is mandatory to focus on making wealth for investors with consistency. With every passing month and year, the track record kept improving for Multibagger and thus investors started showing high confidence in their services. Along with that, they also received the exclusive right for using the word ‘Multibagger’ from government of India.
Catering to clients in approximately 12-15 countries, the AUM of the firm has expanded exponentially. The graphs of the company along with the stock picks have a statistical uptrend, even since its existence. Believing that truth is infectious, Multibagger just kept focusing on quality equity research and then client satisfaction, which further led to word-of-mouth publicity for their services and products.
Planning to make the company a one stop solution for many financial services, Multibagger is now working to launch PMS services in the near future and will foray into other areas of capital markets. Presently, with an offer of differing long-term investment plan, they are waiting for the right time to announce their future plans and services.
Additionally, the team is also preparing to open one branch in Chandigarh, within a short of time.
Shaping Investment Terrain with Technology
Technical advancement has impacted every aspect of current living. The stock trades are now additionally utilizing different specialized progressions to give more prominent accommodation to the financial investors. The exchanges are totally executed on an electronic platform to guarantee freedom for best speculation to financial backers in an open climate. Also, broking specialist organizations offer online share trading facilities that make contributing advantageous, on the grounds that stock traders can submit their requests through a PC from the comfort of their homes or workplaces. The dematerialized account makes it simpler for investors to hold every one of the items inside their portfolio electronically in a location, making it simpler to track and observe its responses and reactions.
Utilization of smart computers has made it entirely simple to purchase and sell stocks online without any human involvement. With easier display management, it has made it smoother for financial backers or representatives to realize the share costs of a given stock and get the details within few seconds. Likewise, one can also receive required information that they can rely on. The modern approach has made it possible to put resources into a given organization, where you can without much of a stretch accumulate tons of data about the organization before putting away your cash on the stock.
Innovation has diminished the occurrences of human mistakes in exchanges and that is why majority of the exchanges are currently made by advance computers. Hence, now it is not difficult to explore on the organization’s growth and future investments and pick the correct stock and close your trading when you feel it is at a risky curve.
Alongside with smart displays, various stock exchanging applications have been created. These applications have made it perfectly simpler to get to the financial exchanges. Likewise, providers of stock exchange that are driven with technology have significantly lessened overheads bringing about an intense decrease in inapplicable expenses. With diminished charges, stock investors would now be able to exchange any given sums and create capitals.
The way these applications can be introduced on cell phones implies that they permit individuals to exchange their finances, anytime and anywhere. Accordingly, individuals are now less restricted, when accounting for stock exchange. The beneficial thing about the less confined strategy is that it opens up a great deal of potential outcomes that change the manner in which stock exchanges are done.
It is indispensable to note that not all elements of technology have been helpful in the securities exchange. There are circumstances where the stock market was set off by bogus signs. Considering how rapidly data is scattered in this period, there have been occurrences where investors have depended after deluding data. Similarly, automated stock exchange has eliminated the requirement for market signals. In addition, this automated trading has been found to cause unexpected shifts and alarm the space in stock exchange.
Although, to eradicate such circumstances, modern technology has been pioneered over multiple sectors and different zones; for example – it has improved the personal satisfaction, sped up manufacturing, and has established transparency in communication. The securities exchange and monetary business sectors have received their reasonable portion of innovativeness. Above enhancement is merely a small part where innovation is shaping the fate of stock exchanging in numerous ways. If such advancement is removed from stock exchange today, then enormous losses could take place in the digital market of stock. It would not be wrong to state that advance technology with smart computers and applications has an immense impact of stock market and will undoubtedly shape the future of investments with passing years.