Equity Advisory Services in India

A very valid question @Mudit.Kushalvardhan .

Small answer – They are professionals and supposed to be good at what they do.

Long answer below

Have wondered the same over many years of my investing journey. But, as for most things, I wonder if there a simple one answer fits all.

I will try to answer this with myself in mind, so it may not be true for 8 out of 10 people in the room. OR maybe it is.

1. I am hugely confused with equity MFs and have been in and out of it for the last 20 years. One major put off is inability to digest the fact that they invest in 50 – 60 companies. But the positive is that they do offer sane returns of 10 – 15 – 20% over the long term. CURRENTLY, I am using Small / Mid Cap and liquid funds as a parking space. Also, my initial income generated goes to Mutual Funds directly. Once i get a good oppurtunity, i shift from MF to direct equity completely. Two examples when i moved completely from MF to direct equity are 2014 elections and Covid lows.

2. Regarding the chimpanzee point you are absolutely right on the role of luck / chance. You can never know. But as far as i am concerned, one needs to make an effort.

3. Now coming to your main point WHY ? Not all equity investors have a process / system in place. They consume a lot of information and keep jumping from one tree to another in search of better fruits ( returns). These may be – moneycontrol, Valuepickr, Twitter etc or paid services like PMS, advisory, paid telegram channels. And since these are professionals who have been doing this job forever, it is expected that they will provide alpha over MFs.