Monitoring of Equity investment

Having made investment in shares of a particular company, it pays to monitor the same on a regular basis. Monitoring does not mean looking at the price movements on a daily or an intra-day basis. It also does not mean that you exit at the earliest possible opportunity. Monitoring of your investment means that you keep a tab on your exposure and keep your eyes and ears open.

Investment in equity and equity related instruments does require discipline and timely response to events affecting the performance of a company and its share prices. There are a few sources which you can refer to for doing it. Let us have a look at them one by one:

i. Research Reports.
Research reports published by your share broker or newswire service providers are a good source to have an indication about the future potential of your investment. The analysis is generally based on financials, order book position, growth and expansion plans and other factors affecting the company. These reports give a good insight into how the prices of your company’s shares expected to behave in future. Sector wise reports may also give an indication about the potential performance of sector in future and how your investments are going to behave in times to come. Needless to say that it is very much required for effective planning.

ii. Business Publications.
Financial newspapers and magazines such as Dalal Street, Capital Market also carry an in depth analysis of the price movements and potential of shares of various companies. These publications are a good source of information for monitoring your investments. Newspapers carry information about daily price movement of your stocks and shares as well as details about last 52 weeks high and low prices of shares. Just have a look and you will be inundated by wealth of information. You can also get information about the best performing companies and sectors and what is moving up and down over a period of time. Makes sense to you to keep browsing through these magazines and publications for your benefit.

iii. Annual Reports.
Annual Reports sent by the company to shareholders carries detailed information about its performance. It also contains a comparison with key profitability and financial ratios as well comparison with last years’ figures. The auditors reports and share price data including monthly high and low are a good source for keeping a tab on your exposure to the company. You can also compare the performance of your company vis a vis its competitors and how it is giving results year after year in comparison. Thus it is a good source of information for all those investors who want to keep an active tab on their investment.


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2 Responses to “Monitoring of Equity investment”

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  2. [...] form of investment tools are brokerage reports and analysis sheets. Many brokerage houses today have full fledged research [...]

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