ValuePickr Forum

Equity Advisory Services in India

I had subsribed to PE and SA. PE give many reco. With bed promoter quality, that i realised now. SA give reco. Which are down. But PE no hope of recovery.

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PE and SA refers to which advisory

Prudent equity and stock axis.

I am also member of prudent equity for 3 yesrs
80 percent of his stocks are down 80 percent and some are down more than 95 percent also.

I heard stock axis is doing far better compared to prudent.

Even now you visit prudent site it’s full of multibaggers he recommended, even if his paid members are in big loss.

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Recently subscribed to @basumallick who is a well known figure in this forum. So far like the way he thinks and construct portfolio. Cost is less so one can subscribe and read his commentaries.

Disclosure: I have no personal/direct/indirect interest in promoting him

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please dont discuss PMS here

None of the Equity Advisory Services are worthy. Mostly they are recommending small and mid caps and in bear markets, they are at high risk even to 90%. wiping all our savings. In addition to high subscription fees and capital loss, they are not worth and blindly to be followed. Better to work on a stock suggested by a genuine member of money control and if invested in SIP would be safe.

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It is unjustified to paint all advisers or investment houses with one large brush of negativity owing to the problems that yours or your friend’s portfolio might be facing because of bad selection of adviser or manager.

One has to understand the cyclicality is the basic nature of equity markets as prices of stocks are governed by sentiments as much as fundamentals. Small and mid caps indices over the long term have always equalled the returns of large caps or blue chips and many studies show that they have even beaten the large cap indices in terms of returns. However, if one is adept at finding good small and midcaps amongst the many - then a few bets gone right can create a life time of wealth. The game of investing in small and midcaps in never such that no stock will ever force you to book a loss. The game of investing in small and midcaps is also not about witnessing lower volatility in your portfolio that large caps and blue chips offer. The game of investing in small and midcaps is that you should be able to find some big multi-baggers which will more then compensate you for the few bets gone wrong on the portfolio basis. I believe that if one is able to give the responsibility to a competent and high integrity manager/adviser focusing on small and midcaps - one can expect 5 to 10 times (or maybe even more) the original amount over the next 10 years - this kind of wealth creation opportunity hardly exists in any other space except maybe betting in casinos.

Having said that, it is true that there are many crooks and/or incompetent people hoping to make quick bucks in the stock markets. Many of such people also prey on the gullible investors who are atleast partially guilty of wanting to make high returns without having the knowledge of or wanting to make the efforts for finding the right manager/adviser for their money. That will entail a check on their credentials / pedigree / track record / stock selection etc.

And I am not saying this without facts, I do know firsthand some people including ourselves who have easily created an alpha of double digits % in this fall since 2018 vis-a-vis BSE Mid/Small cap indices. In such cases, while notional paper losses have been in the range of 10-15% at the portfolio level the presence of cash plus the fact that the stocks in the portfolio are extremely cheap - creates a huge possibility of great returns going forward as sentiments & macro improves. And I think right now, if anything is great time to invest in Small and Mid cap indices irrespective of the chance that the porfolio can further go down. One can never catch the bottom of any cycle - one must also have the courage to act when opportunities present themselves like the present bear cycle.

But yeah, the first step is to find the right person to manage the money or if one is doing it yourself, find the right stocks to invest one’s money in. And it would not be advisable right now to exclusively focus on large caps or shelter your portfolio completely in the safety of blue chips. After all, if one cant withstand the high volatility that equity markets sometimes present, then one doesn’t deserve the out-sized returns and wealth creation that equity markets and particularly the small and midcaps present to you over the long term.

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I am saying just not to trust any advisory blindly and by the way I am utilizing a reputed advisory but in this carnage market has not spared them as well. I don’t want to disclose their name here. I am not pessimistic,but learned a lesson that holding a stock after 50% upside in anticipation of multi-baggers was a mistake in this time of uncertainties when the same dived to all time lows. Definitely small and mid caps returns are unmatched but with high risk.

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I was impressed by the performance of the recommendations provided in the prudent equity home page and enquired more on it from its subscribers.

It seems they have only published the performance of the stocks which have done well during 2013-2017 bull run.
Lot of stocks they have recommended are down more than 60% and there has been complete loss of capital in some of them but the advisory is not publishing it in the home page fearing loss of business.

This is how advisories attract gullible investors and an advisory’s track record has to be measured at-least over one bull and bear cycle.

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Anybody ever used dynamic levels

Please give review

Awesome @abhijain. I agree to it

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I do not comment on this specific thread because I have a conflict of interest as I run an equity advisory so please take my comments here with a large dose of salt!!

Only one word of caution / advise. Please make sure that the adviser / advisory has a good process and has been investing himself for a long time in the markets. Ultimately, we are all investing our hard earned money and should not be guinea pigs in the learning or experimentation.

Even when you subscribe to an advisory, try to understand the merits and demerits of a stock pick. Don’t buy “bad” stocks, even if it is recommended. A lot of people have lost a lot of money in the last 2 years on bad stocks.

I am not saying not a portfolio will not have stocks which will not do well. On average 6/10 stocks will be good, maybe 2 will break even and 2 will lose money. But none of the stocks should be “bad” stocks at the outset. So, always remember that you are the custodian of your hard earned money. Understand the stocks you are buying.

Happy investing.

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Hello,

Could you summarise the basic checks we should do on a stock when it is recommended by some advisory. Meaning things that would most increase the probability of a stock being “bad”.

Thanks

Do the basic checks like if the company has a track record of making money, is profitable over a cycle, does not have high debt, non-chor management (do basic google search with management names etc). Understand why the stock is being advised. Be sceptical of “hope” stocks, which is where a lot of unscrupulous advisories and tipsters operate in.

Just do a simple common sense kind of check. In fact, I have found, if we use our common sense, most of the time, we would be able to step away from major disastrous stocks - and that is half the battle won.

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Which are good advisory in mid-cap space.?

I was prudent equity member for 3 year. Lost money. Many of the stocks are down to 20 percentage of buy value.

Was following Paul asset recommendations. His are down 50 percentage but faired much better. I was only watching Paul asset s stocks.

Heard stallion is good and stock axis is ok. Don’t have first hand knowledge… once you start investing it not easy to make money.

I think noone written in this forum they made money from a advisory. I think advisory offers lot of things but delivers very little.

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Not great picks

I ignored everything they recoed

Maybe I’m concentrated investor with 56 percent of portfolio in Bajaj finance

Yes i also have good experiences with them…it has been only a year but they are quite supportive and conservative

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Is it possible to see how much returns registered advisory or PMS generated on their personal portfolio (filed with income tax) ? (Not interested in what scrips they have, but see their realized/unrealized profit. ). I mean some official record.