It is true that Equity is one of the best asset class for Wealth Creation. Equity is the pillar of riches of the richest people of the world. Equity also has hands on advantages compared to other Asset classes in terms of Returns as well as Liquidity.

Indian Equity has created enormous wealth from its inception, but especially from the first liberalization (1991) and then again from Government's (1999-2004) efforts to encourage businesses and disinvestment (1999) the gains are enviable for any developed or emerging economy the world over. And again the new government (2014 onwards) is determined to bring out Indian economy from the shackles of State run Units to Free Economy Private Individual run enterprises. The general gains from 1979 or since inception from Equity is around 400 times (equivalent to 15% CAGR since 1979 or inception of well known index called "SENSEX").

It is always appropriate to take guidance from market experts and dedicated consultants who can guide in wealth creation from equity market. Investment in equity requires some expertise on analysing business dynamics, cycles, financial parameters like EPS, Book Value (BV), ROE (Return On Equity) etc.. Aadinath shares follows well laid investment process in building long term equity portfolio. At Aadinath Shares, we have a dedicated team of experts in both - fundamental and technical analysis along with a rich experience to guide you in building equity portfolio for short - mid & long term. We believe in providing our clients' value added and premium quality services for sustainable wealth generation over the long term from Equity - the best asset class.

Comparative Analysis of various Asset Classes:

Every individual/corporate has got different asset class / investment option to invest surplus cash to generate extra return on it. Different asset class serves different objective and helps to achieve financial goals.

Following table shows different characteristics of different investment options:

Attributes	Investment products
	Equity	Real estate	Bullions (Precious Metals) / Commodities	Debt instrument like G-Sec. etc.
Volatility	High	Medium	Medium	Low
Return	High	Medium	Low	Low
Liquidity	High	Low	High	Medium
Entry Barrier	Low	High	Medium	Low
Safety	High	Medium	Medium	High
Transparency	High	Low	Medium	High
CAGR % over 5 years	> 15%	10-12%	8%	8%
Cycles	5 years	10 years	15 years	N.A.
Preservation /impact cost	Low	High	Medium	Low
Productivity	High	Medium	Low	High

As seen from the above chart, equity offers higher returns over the longer time; higher the time frame - lower the risk. As per world study of stock markets, equity is the only asset class which beats inflation i.e. generates positive return after adjusting for inflation. Countries like India where inflation remains 5-6%, debt instrument or Indian’s old favourite i.e. Gold/Silver generates marginally positive inflation adjusted return.

Equity not only give higher return but also provides high level of liquidity (lured by high liquidity, some traders damage their capital) and transparency. Indian stock market is having one of the best settlement cycle i.e. T+2 which means total amount of securities sold on a trading day will be credited within 72 working hours.

Equity is the only asset class which provides opportunities to anyone to be a part of country’s economic growth story. By buying a few hundred to thousands shares one become the part of that growing business.

EQUITY RESEARCH

==> Fundamental Research :

At Aadinath Shares, Equity Research is a continuous and compulsory process. Only on the basis of pure in-depth Fundamental Research, we guide our clients to take right investment decisions.

Investment Process / Philosophy

We follow the Bottom Up approach for recommending investment in a company from any sector. We first drill down to the Micro analysis of the business/company of our choice and then evaluate the Industry and the Macro data that can positively or negatively affect the company. We mainly do Qualitative and Quantitative analysis to evaluate any company. We put higher weightage on qualitative analysis i.e. business and management analysis. We gather information or data to evaluate any company from publicly available domain.

Business :-

We look for the stable, profitable and growing business. We evaluate the business prospect over next 3 – 5 years. We strongly believe that buying an equity shares should be dealt like buying a business and being partners with the promoters.

Management :-

We try to evaluate the management from their past performance. We evaluate their execution capabilities committed by them over the years. We attend company’s management’s conference call regularly. We also try to meet management at regular intervals to evaluate company’s future expansion and/or diversification plan.

Valuation :-

We evaluate various financial parameters like EPS, BV, ROE and ROCE etc. to evaluate the company's profitability, stability and growth prospects. We also compare company's financial performance with peer group companies.

==> Technical Research :

Technical Analysis is a study of price charts of various indices, stocks, commodities, currencies etc..Technical Analysis (TA) can help us identify the trend or the change of trend at a very early stage. Technical Analysis can help in predicting future price targets in advance. Technical Analysis is done with the help of applying various mathematical formulas, etc. on price charts with a weightage on its volume. With the help of TA, we can find out the potential investment options. Due to this, the success ratio and return on investment increases. There are hundreds of theories created by experts like DOW, GANN and Elliott etc. . At Aadinath Shares, we've got experts in TA and we've got associates who are the best in India, so that our clients are benefitted immensely. We believe in studying both, FA and TA before recommending an investment to our clients.