{"id":1820,"date":"2018-05-05T05:29:00","date_gmt":"2018-05-05T05:29:00","guid":{"rendered":""},"modified":"2025-11-06T16:42:09","modified_gmt":"2025-11-06T11:12:09","slug":"investing-on-basis-of-free-research-reports","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/investing-on-basis-of-free-research-reports\/","title":{"rendered":"#InvestorEducation: “Investing On Basis Of Free Research Reports?”"},"content":{"rendered":"
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Finding Mr. Credulous in the game of stock markets is a facile task, with many investors investing based on free stock research reports, SMS tips or hearsays. After all, they are like a free lunch and who doesn\u2019t enjoy it?<\/p>\n\n\n\n

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\u2018There\u2019s no such thing as a free lunch\u2019 \u2013 Milton Friedman<\/p>\n<\/blockquote>\n\n\n\n

The perils of clinging to free research reports<\/h3>\n\n\n\n
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  1. Free research reports, even if from a credible source, are generic:<\/strong> Every investor is different and so is their financial goals, risk appetite<\/a>, investible surplus and their financial responsibilities. For e.g. Company XYZ who has been a proven tracked record in equities publishes a report on stock ABC, which is a growth stock. Growth stocks<\/a> are generally high risk-high reward stocks. A risk-averse investor who is looking forward to a steady source of income in the form of dividends may be in for a ride of terrible shock if he purchases the stock.<\/li>\n\n\n\n
  2. Doesn\u2019t tell a story about portfolio allocation strategy:<\/strong> Going by the research reports, one may accumulate countless stocks, clueless what to do with them over a period of time. Also, free research reports tell you nil about the price to enter, when to exit, how much to allocate, period quarterly results, etc.<\/li>\n\n\n\n
  3. It ignores portfolio rebalancing:<\/strong> The secret sauce to getting rich in the stock market<\/a> is identifying the right stocks<\/a>, monitoring them and portfolio rebalancing. You may purchase a strong which boasts of strong fundamentals, however, the fundamentals of a company may change time to time. Holding a stock which doesn\u2019t hold the same growth potential is definitely not worth the candle.<\/li>\n<\/ol>\n\n\n\n

    Here are the 3 parameters you cannot miss on while making an investment decision based on research reports.<\/h3>\n\n\n\n
      \n
    1. Dig information on the recommended stock:<\/strong> Before making a stock market investment<\/a> decision, conduct research on your own or ask an advisor about the intricacies involved. Ask questions such as: Is the stock suited to you? Is it a long-term stock or momentum stock? What is the downside risk?<\/li>\n\n\n\n
    2. Check the credibility and pedigree of the research team:<\/strong> Is the research team has enough investing experience across various business cycles, are they registered with regulatory authority, etc.<\/li>\n\n\n\n
    3. The depth of the research report:<\/strong> It is crucial that the recommendation is backed by robust research which is an amalgamation of due diligence of qualitative aspects (management decisions, goodwill, regulatory compliance, etc.) of the company, examination of its financial statements, growth trajectory, business expansion plans, sector analysis, Porter 5 forces analysis, and the list is exhaustive. Any advisor worth his salt will perform fundamental analysis of stocks<\/a> by evaluating all the possible qualitative and quantitative parameters before giving any multibagger stock tips.<\/li>\n<\/ol>\n\n\n\n

      Also Read: Momentum Investing Strategies<\/a><\/p>\n\n\n\n

      \n

      Investors should purchase stocks like they purchase groceries, not like they purchase perfume \u2013 Ben Graham<\/strong><\/p>\n<\/blockquote>\n\n\n\t\t

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      Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      \n How to Invest in Share Market? <\/h3>\n \t\t \t

      Considering the volatility, investing in stock markets is both an art and science.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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      \n 5 Best Places To Live After Retirement In India <\/h3>\n \t\t \t

      While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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      \n 90% People Lose Money in Stocks? <\/h3>\n \t\t \t

      Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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      \n Is Long Term Investing Always Safe? <\/h3>\n \t\t \t

      Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      Finding Mr. Credulous in the game of stock markets is a facile task, with many investors investing based on free […]<\/p>\n","protected":false},"author":5,"featured_media":1821,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=1820"}],"version-history":[{"count":2,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1820\/revisions"}],"predecessor-version":[{"id":59435,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1820\/revisions\/59435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/1821"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=1820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=1820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=1820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}