Points to be considered before investing in any company

Hi everyone first of all very Happy New Year 2022 hope you all are doing good and I'm expecting that you are serious about your future and want to learn how to invest in sharemarket. You will require demat account for that purpose. I personally use Upstox and zerodha both I'll pin account opening links in comments below if interested you can open using those link else any other broker you can prefer. So without wasting much time I'll directly start with those things which I personally check before buying any company shares. I hope this will will help you in while selecting Shares for investment. I'll suggest if you are looking for investment then atleast you should hold shares for minimum 3 to 5 years. 

Company details : first of all need to select a good compant like TCS, Reliance, Dmart, HUL, as per your interst of sector like IT, Banking, Automobile, FMCG sector. after selecting company visit their website or google about that company what all products they make so that you will get an idea about their business.

Management details : After that you must google about the management details who all are there in company. Also check their positions like MD, CEO, chairman, Director and other business body involved in company.

Chart pattern : Check company chart pattern for maximum duration. Try to select those company with upward trend chart pattern.

Promoter holding : Visit NSE india and check promoter holding. prefer to select those company whose promoter holdings are 50% or above it.

Promoter pledged shares : Now check for pledged part. If promoter holding is 70% but 50% out of it is pledged then what use so try to avoid such company and If promoters pledged shares are below 20% then its little bit ok I will say.

Debt : Now check company balancesheet for company reserves and cash holding. Also check its long term and short term debts. try to select debt free company.

Who all are holding : Last but not the least check who all are holding that company like mutual funds, foreign investors, domestic investors and retail public investors. 

So these are some basic points that I personally check before buying any shares. Obviously you need more stuff like checking quarterly results, Net profit and loss, revenue generated, share price support and resistance. So you need to add those shortlisted shares to watchlist and buy it when you feel its the right time to enter once your own study is done. 

A humble request to all don't just blindly follow my instructions consider your financial advisor suggestions and do your own study before taking decision. This blog is for sharing my personal opinion and suggestions to you all. For any questions, queries you can comment it down I'll surely try to answer. If you like this blog do share it with your friends.