What is ProInvestor?

PROINVESTOR INDIA is an attempt to bring the small and retail investors into the league of PROFESSIONAL INVESTORS. And thus, earn the same returns over the time that are enjoyed by the professionals in this segment.

Why can't the retail and small investors benefit from stock investing?

Have they benefited from equity markets the way they should be?

Is equity investing only the domain of rich and HNI, mutual fund and institutional and FII types of professional investors?

We pondered on such questions in regard with the prevalent condition of investors in equity markets in India. The fact is that small and retail investors and mid-sized alike have not benefited from stock investing in India. And there is no doubt that they have a right to benefit from that.

There is a distinct reasons why they have not benefited and that are (1) They do not understand 'why to invest?', (2) They do not understand 'why invest in equity'? (3) How to invest in equity/Which approach? (4) When to enter/put money? (5) When to book profit (or even loss) (6) What are different strategies based on financial planning and wealth creation? (7) What are different approaches based on time duration of investing and how and why to select them (8) What is portfolio investing? (9) What are the top mistakes to avoid?

And of course, the selection of right stock/stocks in portfolio. The investors lack all this knowledge. It is not the knowledge of PE ratio and such other difficult analytical tools. That will always remain the domain of an expert like us. But it is this knowledge pointed above that differentiates the wide success rate from most investors and successful professional investors.

Please check out the most useful LIST OF TOPICS AND ARTICLES on our site as well LIST OF SERVICES FOR INVESTORS on relevant pages.

PROINVESTOR INDIA Introduction and Brief Products Presentation

ProInvestor's INVESTMENT CLUB Service

                       o Why Choose PROINVESTOR INDIA For Your Investment Consultation?

o   Why Should You Invest At All?

o   Why Must You Invest In Equity Market?

o   Why Do You At All Need A Professional Advisor?

o   Why Trading is Always a Loser's Game?/ Why Trading Is Always Loss-Making & Investing Is Always Better Than Trading?

ProInvestor's STOCK SIP Service

o WhyChoose PROINVESTOR INDIA For Your Investment consultation?

o Why Should You Invest At All?

o Why Must You Invest In Equity Market?

o Why Do You At All Need A Professional Advisor?

ProInvestor's INDIVIDUAL INVESTMENT ADVICE Service

o WhyChoose PROINVESTOR INDIA For Your Investment consultation?

o Why Should You Invest At All?

o WhyMust You Invest In Equity Market?

o Why Do You At All Need A Professional Advisor?

ProInvestor's PORTFOLIO SHUFFLING Service

o WhyChoose PROINVESTOR INDIA For Your Investment consultation?

o Why Should You Invest At All?

o WhyMust You Invest In Equity Market?

o Why Do You At All Need A Professional Advisor?

Why Choose PROINVESTOR For Investment Advice?

Why choose PROINVESTOR for investment advice?

·         PROINVESTOR has expert fundamental analyst, economic analyst with experience across bull and bear markets. Our experts are highly qualified like CA, CS, CFA, CFP, CMT, MBA Finance, Ph.D. We use freelance experts as well for best research reach.

·         We have coverage of 95% of the business sectors with 90% of the listed companies’ fundamental research.

·         Our analysts have successfully forecasted market movements and stock recommendations in worst performing markets while never missed to make maximum benefit for our members in bull markets.

Strong belief in wealth creation by investment rather than trading.

Strong background of successful stock picking.

Our core philosophy remains…

o   Remain invested in markets.

o   Keep shuffling your portfolio according to market and economy conditions.

o    Stay attune with value investing principles of Warren Buffet style

o    Bet on multi-baggers carefully as there are not many of them neither you have unlimited capital for them.

o    Take benefit of present intermediate trend (flavor of the season) while sitting tight with core investing principles such as value investing, timely booking profits in such intermediate trend investment.

o    Adding into ‘longer-term’ stocks on declines.

o    Largely staying clear of IPOs.

o    Look out for good mutual fund schemes for investing in international equities, international real estate, commodities stocks, and commodities themselves.

o    Bear Markets don’t long last in general, but can do so in particular (sector/stock specific)

o    Mid-caps are better than smallcaps, and many largecaps in growing economy such as India are in fact still Midcaps.

o    Being Contrarian investors ‘pains’ heavily in the short-medium term, but it ‘pays’ heavily in the long-run.

o    Do not take long-term investment picks based on technical nalysis (Those who see charts to give recommendations). Meaning don’t take investment advice from technical analysts, take trading advice from them.

o    Thrust on elements of ‘Behavioural Finance’ ((the psychological aspects of individual participant and crowd in markets) while understating markets and movements.

o    Always remaining prepared with the ‘3 Essential Strategies for investors’

o    Strong belief in ‘Portfolio investing’ approach

Most of investment advisory sites (including the so-called top 3) offers services which merely throws stock recommendations randomly at times when they want via email and web logins. These people think that investors are always ready with money at any time to invest in stocks that they recommend. This is stupid assumption. Also, they do not care about ‘how much money to invest in each’ and such other crucial questions.

We at PROINVESTOR understand that the investors need precise advise when he should and when he wants. Investor does not want ramdom stock pickings every week now and then. Investors ultimately want to make money in the short, medium and long run; build wealth and fulfill their financial goals by financial planning through equity investments. That’s what they want. Not the fancy products of fancy sites which throws stock recommendation every now and then and does nothing to address the real need of investors. AGAINST ALL THAT ProInvestor’s approach, products and process is completely different and no-nonsense. We think about individual to individual customer. Because that’s what they are. An individual customer. An individual person.

Equity Investing & Dividends, Important Thought

Equity Investing & Dividends, Important Thought

Why invest in equity shares? Why do we become investors? It is return. Return on our capital. The return while investing into any company is dividend. We get return from or in the form of dividends. But how many people investing today think about dividend? There is an ill-awareness and mis-education going on in markets. Most analyst or investment manager does not emphasize this point. All give targets and calculate the percentage rise. While real investing is aimed at earning dividends and of course the capital appreciation in terms of bonus issues and rise in the share’s quoted price in addition. The return counted by the buy-price and target price is practicable only when the shares are actually sold and till it is only on papers.

How to Overcome the Fear of Correction or Falling Market?

How to Overcome the Fear of Correction or Falling Market?

How to Save Yourselves From Market Crash?

1. First you define you are a trader or an investor.
2. If investor then define each of your stock holding with a holding duration or an upside target price or both.
3. If you are a trader trade on both sides, don’t become a bull-trader, or a bear-trader. Some of our viewers sent us mail that ‘what’s wrong in being a one-side trader, one can be either a bull-trader or a bear-trader and still earn’. I agree, but then there will be a lot of practical issues. What would you do in case of all round short term or intermediate market correction if you are a bull trader and vice-versa? Would you be able to control yourself and remain on the sidelines for days, weeks or months?

Apart, in reality being a trader and preferring only bull or bear side is in fact a bias. It is a liking, so it is a bias. So that is why to excel in trading you need to learn to short as well.

This type of readiness and experience also overcomes the fear of correction or falling market, because you ‘know to profit from declines, and you eradicate the fear or loss by going only and only long while whole world is selling’.

4. Days of high volatility and swings on both sides are very less so this is also a relief.
5. Don’t hesitate to change your stance. If you think it’s a SELL and you told everybody a day before it’s a BUY then you would fear others undermining you. Remove this fear.

Very less people know that George Soros, considered world’s biggest trader-one day told his friend that he was short on a commodity. After some days the friend met him and told Soros that as the commodity price rallies his company must have lost millions. Soros replies he reversed his position and went long and made a huge killing.

But this doesn’t mean that you frequently change your mind. You have to find that optimum line of balance.

6. Follow value investing. This is a bullet-proof investment strategy.
7. As an investor, accept market is also made of speculaton and trading interests. Don’t benchmark your investment stock shouldn’t fall below so and so price. Remain ready for ups and downs in your share price. Don’t check the price daily. Review once in a month or in a quarter only.
8. Traders can hedge. If you are uneven about the market or don’t like corrections. Then buy index put options. Or you can also trade with ‘Pair Trading Strategy’ where you buy some counter and at the same time go short in others. You decide this on the basis of several methods such as sectoral analysis, performance cycle analysis and so on.
9. If you are a Delivery based/positional trader then keep cash in times of high volatility and uncertainty. This cash can help you take position in case market correct. 
10. Bull markets don't end easily and Without witnessing exaggerations and extreme euphorias. Similarly bear markets don't last much longer. This is not a rule but is an established fact with few exceptions.
11. If you have hired tips service of some analyst, and he is not able to give sell calls in a bull market or buy calls in a bear market then change your analyst.

Advantages Of Early Investment In Life Specially For Multibagger Returns

Dear investors,

Many Times you all have read about multi-bagger stock or rising stars and many investments companies gives example about early investments that how small companies became big corporate and successful business. Let’s see some example of the same,

Change in share prices over the past 10 years:

Stock	Price of 15/12/1999	Price of 15/12/2009
Aban Offshore	6.7	1191
Era infra	1.2	197
Shriram transport	4.5	451
Kalpataru power	20	1020

Now tell me are you a person who has invested in any of the company for the above given period?  You have to spot the long opportunity at low levels or early stage of the business or early stage of economy.

Below are some of our very earlier recommendations

STOCK	INV.PRICE	CURRENT PRICE
Tata power	25	1300
Tata steel	25	500
Larson	20	1600
Reliance ind (demerger)	10	1000
Values adjusted for merger/	Demerger/bonus/split etc.

Now see the gain after long term, many analyst or economist including we believe Indian economy will grow but which stock or companies are worth to buy and beat the stock market in the long run ike Warren Buffett, Rakesh Junjunwala, Ramesh Damani, Ramdeo Agrawal?

Try and find out the Companies with negligible revenue from core operation but with mega plans under implementation are worth a look.

Few companies have little or nothing to show by way revenue and profit from their core business operations. Many of these companies have mega future plans that could completely transform the company, its business profile and size of operations.

Investing in such stocks makes sense before their core business goes on stream and start contributing to the top line as immediately after this it is most likely that such stocks would witness re-rating and rise further.

Before investing in such companies, investors can try to reduce risk by focusing on various aspects of the industry and company. Such as management credentials, project implementation skills and experience, corporate governance norms, financial backing by group, industry dynamics and size of the business opportunity etc

Now if you feel that you or your family not enough lucky like , Ramesh Damani, Rakesh Jhunjhunwal, Ramdeo Agrwal who always find out "diamond" at early stage of the business/economy like gillette, mcdowell, find out by ramesh damani, praj ind or beml find out by rakesh junjunwals, hero honda and bharti find out by ramdeoo agrwal or hdfc bank find out by sameer arora of Helios capital then don.t worry we have find out the next"HIDDEN GEMS"or "DIAMOND" at early stage of the business and ready to become big business in terms of revenue and profit in the next decade .

How handful of people ate the cream of Indian Economic Growth & Why You Are Responsible For Your Own Financial Good and Bad In This Age

How handful of people ate the cream of Indian Economic Growth! Ajim Premji, A Case Study: And Why You Are Responsible For Your Own Financial Good and Bad In This Age:

If you are reading this than you must be aware that stock market/capital market is the barometer of the economy and it is the place where you trade the growth of the economy. But how many out of the entire population eligible to invest has invested in this growth of the country? Have you ever wondered that there are only 3-4% population of the country that is invested into stock markets right now (including mutual funds) and why so? The ratio of entire country’s population invested into stock markets run somewhere between 20-50% in China, USA and other such economy. The lower equity participation is also one of the reasons why India, after 20 years of liberalization has not been able to come on the fast track of sustained growth rate like China and other Asian peers.

The point we are discussing here is however distinct.

What we want to throw light is here that how handful of promoters have ate the cream of privatization and benefited from the liberalization of the economy.

We will take only one example or case study here. The IT sector is one of the major beneficiary of the liberalization process. Wipro has been among the top 5 IT companies among Infosys, TCS, Patni, Satyam, Tech Mahindra and a couple others.

This top 5 companies were garnering and monopolized and say enjoyed 60% (in fact of the benefit of growth of IT sector. Thus, Wipro shared 12% of this. Now this will translate into 6% of the IT sector’s growth benefit going to Wipro alone out of the entire 100% growth of the IT sector due to liberalization. The more important part is still coming. Wipro promoter Ajim Premji held close to 90% in the company (as on December 2012 also the promoters hold about 80%). Thus, out of the 6% of the entire IT sector growth in India that occurred due to liberalization, Wipro alone earned 6% and out of the 6%, 90% i.e. 5.4% benefit solely went to Ajim Premji & Sons! (You can find such case in almost all sectors)

This is in our opinion, a big loot of the right of the average citizen who has also compromised and contributed to the liberalization of the economy and has a right in the growth share of each sector. Everyone has a share in the growth of the economy. Yes, the risk takers, those who ventures, the entrepreneurs, those who toiled and moiled have to benefit more. But, the assets of the economy and country is an asset of every citizen of the country. The airwaves spectrum that are bought by the telecom companies, the coal blocks, the dams that are built on the rivers, the public sector companies, the mineral reserves, the lands, the farms, even the policies are an asset of each and every citizen of the country. Thus, every liberalization policy, in this example, the IT sector’s growth was also the asset and entitlement of all Indians.

But so what? So far so good till here. Let us skip and ignore if we believe and say that there were corruption, and kinsman ship in giving out the benefits of the asset that we talked about like telecom spectrum, the latest example, and the mines and so on. We cannot do anything about it. It will remain part of the life. What could an average Indian have done about the telecom spectrum scam? What can you do about the coal block and the oil and gas block allocation? If someone has the capacity to bid for spectrum, they are most welcome, it’s free to bid for everyone. All are free to do any business and take benefit big time. The average investor/small investor/retail investor is not barred from bidding for a public sector undertaking which is on sale, no. But they can’t.

The point is that there is ton for elephant and gram for an ant. The retail investors can’t open a big IT company or can’t build a refinery like Mukesh Ambani. But they can participate in their right to do the same business and benefit by purchasing the shares of the same companies. The only thing is that they have to select right. It’s their responsibility. No one else’s. The moment I gave example of Ajim Premji and Wipro, I do not mean to despise anyone or Ajim Premji. The way capitalism, liberalism and free economy works is clear. You have to take care about your own self. You got it.

We are not criticizing Ajim Premji, in fact his entrepreneurial ability is praised. It was the responsibility of the government and capital market regulator to see that the fruits of economic growth is distributed as much equally as much possible among the citizens of the country. That is what the Constitution of India also contends.

This is only the story of one sector. You may find similar incident in other sector and industry also. The story applies to geographical spaces as well.

To undo this, the government has now specified a minimum public float of 25%. It has been extending the date of this public float requirement since last 2 years. This June 2013 is again last date to comply with the same. However, that said, as mentioned above, it is also your responsibility that you benefit by investing in sectors and the leading companies or growing companies. Or invest in whole market by buying index funds or others.

The conclusion for retail investor is that it cannot rely on slack and slow government follow-ups. The retail investor has to awaken and start investing in stock markets. He can start with an SIP in Index funds of top 100 companies or diversified fund or can hire a good professional advisor and start investing directly into stocks. The law economics says the long term rate of interest are always in declining mode. That said, the fixed deposits rates will always come down. Do you remember in last 15-20 years, the fixed deposit rates have come down from 15-20% to now less than 9%? And this well continue to decline. Capitalism is not going anywhere, retail investors must accept the change and make money work for them.

We will elaborate how Indian Government also wants to take off the burden of depositors from its shoulder and wants to push everyone to invest in equity markets by bringing in new pension scheme, the rajiv Gandhi equity scheme for attracting new investors, the liberalization of mutual fund and insurance industry and allowing full FDI in them and so on. Just imagine how many rupees are going to come in markets in coming days? Suppose, in 20 years of liberalization the Indian markets have growth

How the government/Indian economy’s rating and companies will benefit and you will lose?:

In the same breath, we also make you notice how government has increased the prices of fuels like oil, gas and wants to decrease its burden in terms of subsidy also. Who will benefit and who will lose? Of course, the companies who sell this things will benefit. The government will benefit by way of low deficit and thus rating of India will improve and consequently the foreign fund flow will improve. The losers will be those who will rely on their present income from job and business. They are going to be hurted by inflation in mid to long term and those who invest in equities in any way will cover themselves from inflation and also get extra return on their equity investments. Please read separate article on effects of inflation and the power of compounding (in fact the first objective for investing is to save ones money from decreasing in value from inflation and then get a return/interest on it if any)

I hope you got the entire point of this article. That is, you need to be invested in equities. There is no alternative to it if you want to prosper financially.