What Is Direct Equity?
A direct equity investment is about independently and directly investing in publicly listed companies traded over stock exchanges. Investors can employ DEMAT and trading accounts to buy and sell the company’s shares/ stocks and allocate funds in the domestic equity market. We, at Swyom, assist investors in their equity investment journey. Investors can run their direct equity portfolio under our guidance.
Upsides Of Direct Equity Investments
Followings are the types of the Bonds
High Returns
Individualised Approach
Simple Investments
Regulations
Compared to other investment options, such as mutual funds, direct equity investments can generate higher returns in the long term. Unlike domestic funds, direct equity not only help investor earn higher dividends but also create wealth through capital appreciation in the long run.
Direct Equity - Suitable For Whom?
Direct equity investments are ideal for seasoned investors who have a good grasp of market functionality, greater risk appetite, strong conviction of growth of any particular sector or company and a deep understanding of investment trends. Unlike mutual funds, direct equity is for investors who prefer making an independent investment decision.
Direct equity investments are perfect for traders who prefer to time buy and sell calls in the market and investors who prefer to make long-term hold decisions.
Difference Between Direct Equity Investments And Equity Mutual Funds
In direct equity investments, the investor makes the investment decision and is expected to perform in-depth analyses of the stock potential and understand future growth before investing capital in the respective stock. In mutual funds, the fund manager is the one who makes investment decisions on behalf of the investor.
It is important to monitor direct equity portfolio more often because unlike Mutual Funds which have Fund Managers making direct equity investment decisions require your attention and knowledge.
BENEFITS OF INVESTING IN A PMS
Portfolio With Benefit Of Discretion
Portfolio management services can be discretionary or non-discretionary. Investors can opt for discretionary PMS and give the fund manager free hand to execute transactions on behalf of the client based on their best judgment. Alternatively, if you opt for a non-discretionary PMS, all transactions have to be approved by you (the client). Based on your unique needs and risk appetite, PMS creates a unique portfolio for you. This is not the case with a mutual fund that creates a single macro portfolio.
Why Choose Swyom Capital
For Your Direct Equity Investments?
Trust
Swyom Capital is customer-centric and works with a long-term vision.
No Hidden Charges
At Swyom capital, transparency is one of our core values. In case of an asset sale or purchase transaction, we don’t implicitly impose hidden fees or charges to our clients.
Assistance
Expert associates at Swyom capital provide best-in-class assistance and handhold clients through every step of the process. Additionally, we simply process to suit our clients' needs.
Premium Support
We are always there for you. We help you to get the most out of our services.
Invest In High-yield Opportunities
Swyom Capital’s direct equity investment services enable individuals and institutional investors to focus on investing in companies with consistent annual earnings – one that generates above-average growth in the long term.
FAQ’s
When an investor directly invests in equity, they now own a limited percentage of the company. In other words, the investor owns a piece of the cake. In direct equity investment, the deal is – the investors offer operational capital and, in return, receive a percentage of the profit or losses in the organization. The company employs the capital made available by the retail and institutional investors for capital expenses, corporate expansion, debt payments, funding business operations, hiring employees, etc. Investors who invest in companies through direct equity can also earn dividends quarterly or annually.
Direct domestic equity investment or any other kind of market-linked investment instrument is not ideal for risk-averse individuals. Individuals and institutions with time constraints, resource limitations, and inadequate investment knowledge must invest in domestic funds such as mutual funds – because domestic funds incur moderate to low risk while offering consistent returns. Both direct equity investments and domestic private equity funds in India are perfect for investors who are willing to stay invested in the long term. Investors looking forward to accumulating high to moderate returns must invest in direct equity.