Dear investors,

One of the biggest hurdles for Investors is patience.

Fundamentals based investing is about identifying mismatches between Share price of a company and value lying within the company. This value may be created by 1) Expected growth of the company or business revival, and 2) a share price correction or fall, due to an external event.

In both these scenarios, the mismatch may take some time to unfold, or be recognized and understood. An Equity Research on a company may identify the mismatch, but the firm may still be far from the value unlocking.

Rule #3 – Investing based on Fundamentals should be done with minimum timeframe of 2-3 years

All fundamentals based investing is prone to unexpected news, internal and external, and business cycles. Sometimes we can be lucky, and get quick returns from our investments. Most other times, its worth it to wait for value unlocking, even using a SIP method of investing, where we systematically buy the shares of a target company based on the Equity Research recommendations.

Another aspect I have come across is “triggers for investments”. Here the analyst identifies a target company, but waits patiently for the triggers to be in place for share price revival, rather than investing from earlier. This however is fraught with unknowns. Will we recognize the triggers in time? Will we be able to buy at this time?

Thus its better to give investments a 2-3 year timeframe to unlock value. Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Join us for a Q&A session on 10th June. Register for this on https://forms.gle/ZPsHbz8h6dfVE99u8

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.