My Important criteria for investing in EQUITY

My Important Criteria for investing in EQUITY SIP- 

For me, Investing through

MUTUAL FUNDS is the best route towards achieving financial abundance in LONG TERM based on your Goals, Time Horizon and RISK appetite. 

(Still,  I have exposure in equities....

There are few LESSONS that I have learnt the hard way in my journey towards financial freedom since 1993,  which I am sharing with all) 

1. Prefer to stay with equities present in NIFTY FIFTY, with few Mid cap stocks.

2. I check the Performance of the Company based on consistent increment in REVENUE 

( Revenue Growth Year on year DATA) 

3. I check for and focus on PROFIT EARNINGS on, year on year basis. 

4. I Look for Market capitalization of a company, before investing. 

Higher the better.  

Presently am focusing on companies above 1800 crores, Always prefer Nifty 50  stocks. 

5. I Look for PE- price to Earning ratio. (Current Market Price / Earning per share). If it's below 25, I ignore it.

6. I Look for Price to earning and Growth. 

( EPS/PE RATIO).

it should be less than one. It helps us analyse whether the stock is underrated or over rated. 

7. Compare with Industry PE. 

8. I look and evaluate the Book Value.  I buy it above book value.  

If the price is more than 18 times,  I wait for it come down. 

9. I check the Debt ratio 1:2

(High debt companies is strictly NO for me) 

10. check the FII and DII holdings.

11. Analyse the track record of Management

Happy Investing.... 🙂

Biswajit Roy 

Msc(Psychology), MBA,  CMFD

Financial Strategist and Wealth Planner

Author - Miracle Wealth Unlocked.