Orientation session provides overview on equity investments

An orientation session on stock market investments, held recently at Muscat Stock Exchange (MSX), attracted a number of finance and accounting professionals, equity analysts and aspiring investors.

Speaking at the event, A V Manohar, CEO — Wisdom Business and Training Services, said the secret of success in investment is to be “system-oriented, strategy-driven and smart-in-action”.

Espousing the importance of saving, the veteran financial professional noted: “Investment is a wonderful journey and if one steps in at a young age, through compulsory savings every month, he can reach the higher portals of wealth early in life. A great chance of compounding one’s savings through a fabulous multiplier effect is awaited in this game of skills.

‘Make money out of money’ is the narrative that comes out in this exciting endeavour. Stock returns as a hedge against inflation are another advantage.”

Stock market investment is not as risky as thought to be by many, provided the investor keeps investments in fundamentally good scrips and decides to hold them for a long term, he said.

“’Buy Right; Sit Tight’ is the wise advice from equity winners. Researching on fundamentals of the company before investing, arriving at the intrinsic value of the stock, operating with stop-loss and exiting at the appropriate time are the SOPS for making money in stock market,” Manohar pointed out.

Exhorting his audience to invest from their savings and not through borrowings, he also frowned upon “reckless investing” driven by greed, fear and the herd mentality.

The attendees were guided through different aspects of investment such as Equity Shares, Stock Market, Research on Economy, Sector and Fundamentals of the chosen company, Intrinsic Valuation of the stock, Fixing the Target Return, Buy & Sell Strategy, Investment Plan and Philosophy. Besides, a touch-up on Technical Analysis, Mutual Funds, Unlisted Companies and Bonds.