What is meant by value investing in Indian stock market ?
Investment is considered to be good if you get more in return for what you already paid for. At the time of purchasing a stock the amount you pay is price and what you get in return is value. Price is explicit and upfront. Value is something which is not fixed. Over time period it changes as per the performance of stock. As this value is not certain , this is one of the reason investors are in dilemma whether in invest in it or not. Value is the estimate of future performance of stock which is judged by performing fundamental and technical analysis.There are market experts who can help to perform better by suggesting stock tips after carefully analyzing market.
Value = Present Value of All Future Cash Flows of a Business
The value which stocks are likely to offer in future depend on various factors. To make precise prediction on performance of stocks requires a good market knowledge and skills to perform good technical and fundamental analysis. To make a successful investment , investors should estimate the value correctly and with patience deal with market volatility.Investment is not a scheme to get rich quickly, or appreciate the value of your capital in shortest time. In future your investment may yield you fruitful returns or earn you losses. With knowledge, discipline and good understanding of market principle investors should assure that their investments are in the right directions and capable of giving fruitful results .
Making investment in stock market is fundamentally simple. What returns you are likely to earn largely depends on your choice of stocks. Yielding good returns from market requires skills to identify potential opportunities present in market . So we can say that investing as a concept is easy to understand but apart from intellect, investing requires knowledge, disciplined investment practices. Just by having good knowledge is not sufficient here. Along with good knowledge, understanding of market requirements is more important. This is what meant by value investing, knowing what is right and when it has to be done to gain desired results from the market.
Every investor has certain investment goals which he wants to achieve by investing in stock market. To become a successful investor it is required to understand that value investing requires wisdom, patience and disciplined trading practices. Many are good at creating wealth, but only few can successfully manage wealth by creating running income stream and expanding its value further.There are market analysts as well who can help with precise mcx tips and other trading tips for different markets. Traders who do not have sufficient time , lack in skills or to deal with market volatility in a better way can make use of such experts suggestions.