Rule #2 – Long Term Equity Investments must not be funded by loans

Dear investor,

Long Term Equity Investments must be made using your savings or available cash surpluses.

While equity can give very high returns occasionally, this is not predictable. The volatility in the asset class means that there can even be several years of underperformance followed by a reversal. Taking a loan for such investments can place payments pressure on the investor, and cash flow issues.

In my experience the pressure of a loan EMI payment itself can result in wrong equity investment choices.

Long Term Equity investments are best done with savings from salary or business.

This is quite unlike the asset class of Real Estate. Home loans are common, and loans can certainly be taken to fund such an asset purchase. Here the home value is frozen at purchase and the loan can help fund this out of the individual’s future earnings.

Long Term Equity investments are best chosen carefully, and as stated in Rule#1, made in a portfolio manner. Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

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Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

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