Section | Title | Description |
---|---|---|
4.1 | What is Investing? | Understanding the concept of investing, including types of investments, risk-return trade-off, and time value of money. |
4.2 | The Role of Research in Investment Activity | Explains how research supports investment decisions and helps in assessing opportunities and risks. |
4.3 | Technical Analysis | Introduction to chart-based analysis, including price trends, volume patterns, and key indicators. |
4.4 | Fundamental Analysis | Focus on financial statements, economic indicators, and company-specific factors used to evaluate a company’s intrinsic value. |
4.5 | Quantitative Research | Using statistical and mathematical models to analyze data and forecast financial outcomes. |
4.6 | Behavioral Approach to Equity Investing | Studies the psychological aspects of investing, investor biases, and market anomalies based on human behavior. |
Investing is the act of allocating money or resources with the expectation of generating future returns. It plays a vital role in wealth creation and financial planning by converting savings into productive assets.
TVM is a fundamental principle in finance that states money available today is worth more than the same amount in the future due to its earning potential.
Formula: FV = PV × (1 + r)n
Example: ₹1,000 invested at 8% interest for 2 years = ₹1,000 × (1 + 0.08)2 = ₹1,166.40
Represents ownership in a company. Offers high return potential but also carries significant market risk.
Fixed-income securities like bonds. Suitable for conservative investors seeking predictable returns.
Investment in physical properties for rental yield or capital gains. Generally requires higher capital and has low liquidity.
Pooled investments managed by professionals. Provide diversification and are ideal for beginners.
Include gold, oil, and agricultural products. Often used as a hedge against inflation or economic uncertainty.
A hands-on approach to investing where investors actively buy and sell assets to outperform the market.
An investment strategy aimed at long-term growth with minimal trading by tracking an index or benchmark.
Research is the backbone of successful investing. It empowers investors and analysts with the information needed to make informed decisions, minimize risk, and maximize returns. Without thorough research, investment decisions may be based on speculation or emotion rather than fact-based analysis.
The research process involves the collection, analysis, interpretation, and presentation of data. It includes:
Refers to any non-public, material information about a company that can influence investment decisions. Using such information is considered illegal and unethical under SEBI regulations.
A legal and ethical approach to investment research where analysts collect public and non-material non-public information from various sources to form a complete picture of a company.
Technical Analysis is a method of evaluating securities by analyzing statistics generated by market activity such as past prices and volume. It is based on the premise that market prices reflect all known information, and price movements tend to follow identifiable trends and patterns over time.
Research is the backbone of successful investing. It empowers investors and analysts with the information needed to make informed decisions, minimize risk, and maximize returns. Without thorough research, investment decisions may be based on speculation or emotion rather than fact-based analysis.
The research process involves the collection, analysis, interpretation, and presentation of data. It includes:
Refers to any non-public, material information about a company that can influence investment decisions. Using such information is considered illegal and unethical under SEBI regulations.
A legal and ethical approach to investment research where analysts collect public and non-material non-public information from various sources to form a complete picture of a company.
Technical Analysis is a method of evaluating securities by analyzing statistics generated by market activity such as past prices and volume. It is based on the premise that market prices reflect all known information, and price movements tend to follow identifiable trends and patterns over time.
Fundamental Analysis is a method of evaluating the intrinsic value of a security by examining related economic, financial, and other qualitative and quantitative factors. It aims to measure a security’s true worth to determine whether it is overvalued or undervalued in the market.
Research is the backbone of successful investing. It empowers investors and analysts with the information needed to make informed decisions, minimize risk, and maximize returns. Without thorough research, investment decisions may be based on speculation or emotion rather than fact-based analysis.
The research process involves the collection, analysis, interpretation, and presentation of data. It includes:
Refers to any non-public, material information about a company that can influence investment decisions. Using such information is considered illegal and unethical under SEBI regulations.
A legal and ethical approach to investment research where analysts collect public and non-material non-public information from various sources to form a complete picture of a company.
Technical Analysis is a method of evaluating securities by analyzing statistics generated by market activity such as past prices and volume. It is based on the premise that market prices reflect all known information, and price movements tend to follow identifiable trends and patterns over time.
Fundamental Analysis is a method of evaluating the intrinsic value of a security by examining related economic, financial, and other qualitative and quantitative factors. It aims to measure a security’s true worth to determine whether it is overvalued or undervalued in the market.
Quantitative Research involves the use of mathematical, statistical, and computational models to analyze securities and make investment decisions. It is grounded in data and relies on numerical inputs to identify patterns, test hypotheses, and forecast market behavior.