AkshayEquity

Akshay Equity endeavours to be your trusted partner for your equity investments. We believe that Investing in Equities is the best way to build long term wealth. If done right, it can lead to significant value creation over time. We are passionate about Equities and we seek to partner with you in your journey to create long term wealth!

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Only buy something that you would be perfectly happy to hold if the market shut down for ten years.!”

                                                                                                                                                  …. Warren Buffet

What is investing all about?

Investing is about putting money today with the expectation of receiving more money in the future.

It is about identifying businesses we know and understand. It is about focusing on a few well thought and well researched companies. It is about taking a long term view and not getting swayed by market fluctuations.

A few well identified businesses held over time can create the wealth of a lifetime because time is a friend of the wonderful business and wonderful businesses earn superior returns over time and the magic called compounding comes into play.

To us, simply put, Investing in Equities in essence means partnering with good managements in wonderful businesses and letting them compound value over the long term. This forms the underlying core of our investment philosophy.

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Can you handle it?

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Successful Investing is as much about a strong stomach as about good brains. It is not enough to identify good companies, but you need to have the temperament and conviction to sit through market turmoil and turn it to your advantage by buying in times of panic.

The markets have enough things to worry about….wars, political uncertainty, drought, excess rainfall, interest rates, exchange rates, technical patterns and what not..even astrological movement of stars!! Such interesting events occur with surprising regularity and offer interesting buying opportunities…

Equity Investing is as much an Art as Science !

OUR APPROACH

Wealth is created by buying into good businesses that achieve above average returns on equity and compound at reasonable rates over long periods of time and not by booking quick profits and trying to repeat the trick multiple times. Its difficult to be lucky everytime!

We follow a two pronged approach…

Building the core

Build a core portfolio by buying business that:

  • Have good managements which are shareholder oriented.
  • Have enduring moats and good business economics ( pricing power, enduring moats that don’t need increasing amounts of capital to maintain and grow, little or no competition etc).
  • Will be around for a fairly long period without significant threats or disruptions to their well oiled profitable business models. Time is a friend of the wonderful business and…
  • Are available at an attractive price.

We will buy only businesses we understand and meet our criterion. We won’t invest in the latest hot themes just to look cool! 

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Opportunistic Buys!

There will be times when the markets will throw up interesting short to medium term opportunities. These will be specific opportunities due to market overreactions to either company specific or macro events. We will look to capitalize on such opportunities in fundamentally strong companies (either to better utilize idle cash or lock in a good short term opportunity).

It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price”                                                                                                                                                                                                                                                                                    …. Warren Buffet

What we do

Most investors don’t have the time, inclination and patience to thoroughly research before they invest. They invest based on the information they gather from newschannels/ newspapers or tips/ advice from friends usually in stocks that are ‘expected to do well. Investing is much more than that!

  • We simplify it for them by doing the homework, sifting through hundreds of companies, reading the annual reports and doing the number crunching, understanding the quality of management and business economics and drivers to identify good businesses and periodically check and recheck the story to see that the investment thesis is still intact. 
  • We profile investors by understanding their requirements, their investment objective, the regularity of their investments and their risk profile and help them build a core portfolio of good quality companies that forms the core of their long term portfolio. We periodically review the performance of these businesses and advise clients to add/ exit or invest in new companies.

 Most Importantly, we help build the discipline to invest regularly. We provide the courage and resilience to sit through difficult times, the confidence to add during volatile times and the conviction for higher equity allocation that can make a meaningful difference!

For Clients investing in equities for the first time:

We handhold first time investors to identify a core set of fundamentally good companies, using which they can build a sizeable equity allocation over time.

For clients with an existing equity exposure:

We review our clients existing equity exposure and help them realign it to a more focused long term core set of companies.

In the long run, a portfolio of well chosen stocks and/or equity mutual funds will always outperform a portfolio of bonds or a money-market account. In the long run, a portfolio of poorly chosen stocks won’t outperform the money left under the mattress.

                                                                                                                                                  …. Peter Lynch

WHO WE SERVE

We advise a wide cross section of Investors who seek to build a long term equity corpus.
Whether you have a regular income or not, whether your starting point is large or small, whether you have a high or low risk appetite, whether you are looking at building a corpus for your child’s education or your retirement, whether you are an individual or a corporate, whether you are starting with a large corpus that will deplete as you draw down or with a small corpus that you seek to grow and enhance, Equity Investments are for all of you!
Salaried Individuals/ Couples:
salaried-peopleYou work hard at your careers and save for a better life. You don’t need the money immediately and can allocate a portion of your monthly income to build up a corpus for your long term goals and to create wealth
# Child’s education, Bigger House, Early Retirement. What better way to do it than equities.
#Tax free compounding!

 

We help you allocate money regularly to build up a sizeable equity corpus over a period of time leaving you free to focus on your careers!
Housewife/ Retirees:
retireeYou squirrel away your savings for the rainy day. You hope that the expense you have sacrificed today by saving, will let you do a larger expense a few years down the line. But alas, inflation and taxes eat away at your savings like a termite. An allocation to Equities offers you # Tax free compounding

 

We understand your needs and your focus on preserving capital and help you build an equity allocation! 
Businessmen:

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Business cashflows are often lumpy. So are expenses on expansion, capex, acquisitions etc. Leaving idle cash on your books either leads to low returns or taking it out of your business leads to it being spent away leaving you scrambling for cash when that right acquisition or expansion plan materializes.  If you have a 3-5 year plan, proper capital allocation helps you optimise your cash surplus while achieving high tax free returns on them.

 

We help you allocate capital to equities keeping in mind your liquidity and return requirements.
NRI:
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You have successfully settled down in your chosen professions/trade and country. Yet you long to be part of the India Story. Both your head and heart longs for it. The apprehension that foreigners may have to certain peculiarities of India, which they call risks, are like home turf for you!
What better way to participate than to systematically allocate capital to carefully chosen well run Indian Companies!

 

We help you allocate capital to Indian equities that help you achieve your financial goals without losing sleep over it.
Corporate:

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You have traditionally invested your surplus cash in low yielding liquid instruments. However not all of it needs to be always available on tap. Its possible to segregate your short term and long terms business requirements and accordingly allocate your surplus to optimize returns. An equity allocation provides that additional lever to boost your RoE while still maintaining the surplus in your business.

 

We help you set up an equity allocation that provides an additional lever to boost your RoE while still maintaining that additional surplus in that business.
Family Offices:
family-businessYou have created your wealth. Preserving and Growing it is what differentiates the successful from the not so successful business houses. A sound equity allocation helps you compound your corpus so that you can make that large acquisition or next level of expansion a few years down the line!

 

We review your current capital allocation and help steer you towards a more equity oriented allocation!
Trusts/ Endowments:
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You have created a corpus that you use for various activities. The corpus is designed to last for many years and you will keep drawing out of it to fullfill your objectives. You use a part of it every year and the bulk of it you leave aside to grow to be used in later years. Perect recipe for a long term investment!

 

We help you allocate a portion of this to fundamentally sound equity investments that help your corpus compound over the years further enhancing the impact of your activities.

Long term investing requires:

Investing Regularly

Doing your homework

Being ready and greedy when others are fearful

Taking a long term view

Opportunistic buys