EQUITIES

Securities & Derivatives

Equity, by its name, means ownership. Hence, when an investor invests in companies via mutual funds, or stock/share buying, it is referred to equity investing. These are the best places to give you a better hedge against inflation over the long term.

 

Over the years, equity investing has developed itself into various other forms and complex structured products such as derivatives, PMS, etc

 

Derivatives are an excellent tool for hedging an investors’ position in the market. However, it is predominantly used for speculating activities, apart for hedging. Futures & Options when appropriately used are the 8th Wonder of the World that would make money for the investor; however, caution and expertise along with the risk assessment is the key to investing in this asset class

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Finogent Advisory LLP provides its clients services in the wealth management domain, where in Equity Investing is the core of the business. With team comprising of specialists and having decades of experience, we ensure that your portfolio is taken care of off in the best possible way.

Our management is based on the better and efficient execution capabilities, so that the client is not only able to get the timely, quick and responsive assistance from our trading desk, but is also able to optimize his portfolio’s performance. With access to research capabilities to our vendor partners and platform providers, investors get the seamless access to the global and domestic investing opportunities

Derivatives

The derivatives are broadly categorized into Currency Derivatives, Equity Derivatives & Commodity Derivatives.

 

When we talk about Currency Derivatives, currencies (USD per se) generally work in opposite direction to equities or general indices. Therefore, this provides an excellent hedge to the portfolio, along with diversification. Currency derivatives are mainly used by companies involved in the export and import of goods, so that they can cover the currency risk. However, traders and speculators take their positions in derivative in anticipation of the direction of the currency movement, and hence is a separate asset class for investors.

Important point to note is that, the margin required in currency derivatives is very very less as compared with the normal equity derivatives; which makes is very attractive to the mid income investors

Equity Derivatives provide an investor with the power of leverage when enables him to take position 10 times, as an example, at 1/10th of the cost. While it has its benefits, it also magnifies the risk. Using Futures and Options needs experience and expertise; and is an excellent hedge against the market fall, if an investor is able to hedge his portfolio using derivatives