PRIVATE EQUITY FUNDS

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WHAT IS THE EQUITY ADVISORY ?

Knowing what is equity is of paramount importance before you start on your investment journey across stock exchanges in India. A company requires funds for its businesses and to meet its working capital requirements. To receive funds, it can resort to both debt and equity instruments. It can provide its shares or stocks through Initial Public Offerings (IPOs) to investors as part of raising funds through equities, or offer loan instruments with fixed interest rates, known as debentures.

Once a listed company offers its stocks to investors, these can be then traded – purchased and sold – in stock exchanges, like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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The foremost benefit of trading in shares across stock markets is that you can become part- owners of the company. Every shareholder is a part-owner of the company, in direct relation to the shares owned.


WHAT ARE THE BENEFITS OF INVESTING IN EQUITIES?


  • It has been historically proved that investment in stocks provides the highest returns, over a long-term investment horizon. In fact investment in stocks and securities provide you with returns which can beat inflation. It is among the most viable investment avenues.


  • Investment in equities can also provide you income through dividend issuance. Issuing of dividends is a corporate action, where listed companies share their profits with existing shareholders. Though it is not mandatory for companies to issue dividends, companies issue dividends to signal profitability, and increase their investor base.


  • You must, however, remember that equities have a greater exposure to market volatility. Hence, you must conduct thorough market research, besides exercising due diligence, while investing in stock markets.


  • You can minimise the associated risks by choosing to invest in equity instruments, like Futures and Options (F&O).


    • We are pleased to offer you these services through Kotak Securities. Kotak Securities works and provides information in systematic manner and after lot of research which adds lots of value to client and helping in quick dicision making related to where to invest and at what time to invest.