We have complete faith in the power of equities for creating wealth. History proves that
those who identified the right opportunities, were able to amass a lot of wealth in stock markets.
We, at Research & Ranking, call it the 5x5 Strategy aka Wealth Creation strategy.
So what exactly is this strategy and what prompted us to come up with this strategy?
We identified some common myths & problems which exist around equity investments.
Our 5*5 strategy is offered as a solution to all of that:-
Myth: Equity investment is all about gambling & luck.
Reality: Equity investment is about the identification of stocks of solid, well-run and growing businesses.
- Majority of investors who lose money due to equity ‘trading’, blame it on equity ‘investment’ and end up thinking that long term investment in stocks is all about gambling & luck. Our 5*5 strategy is not about gambling or trying to time the markets every day.
- We create stock portfolio(s) of well-run businesses which have the potential to grow up to 4-5 times or more in 5 years. The portfolio growth is tracked every quarter and portfolio rebalancing is done if required to make sure — Yearly Growth is captured along with the Long Term Growth in the business. So, one may choose stock market investments for any period — One Year and above but we encourage you not to subscribe to this strategy if you have less than one year time horizon.
Problem: No role in decision making when you allow others to manage your money.
- Profit or loss on your stock market investments usually comes to you as a positive or a negative surprise. You rarely have any role in decision making when you allow others to manage your money. We encourage you to think - is this the best way to invest?
Solution: Empowering you with a model portfolio of 15-20 high growth companies.
- Our 5*5 strategy empowers you with a model portfolio of well run and growing business with all the answers which shall make your decision making easier:
- As a part of this strategy, our research team and smart algorithms monitor the portfolio regularly to book profits in existing opportunities and replace the underperformers with better opportunities, meeting our 5X criteria.
What to invest in?
15-20 high growth companies.
Why to invest?
Investment rationale supported by comprehensive fundamental research reports.Please see our
sample research reports here.
When to invest?
As per the ‘Buying range’ in the model portfolio.
How much to invest?
As per the
‘Model portfolio allocation’.
Myth: Equity investments can’t be done based on goals and objectives.
- It is a general myth that equity investments can’t be done based on your personal goals, needs and objectives. Investors usually think that for goal-based investments, fixed income options are the best way to go.
Reality: Our Strategy tracks business growth and have a fair idea on how much the portfolio can grow.
- Under our 5*5 strategy, we identify very high quality businesses and track their sales and profit growth. Our technology & smart algorithms help us understand the business growth of the company which gives us a fair idea on how much the portfolio can grow.
- Long term performance data, across several asset classes, has proven that equity beats all other asset classes in the long run.
Problem: Focus towards managing wealth, not wealth creation.
- Typically, investors are on the look-out for the best wealth manager who can help in managing their wealth in various long term investment options. Investors actually want creation of wealth, not just to manage it.
Solution: Via smart use of technology, we help you in wealth creation & not just manage wealth.
- At Research & Ranking, we provide you the best advice and extremely high quality fundamental analysis of stocks. Wealth creation can ONLY be done when you are involved in the investment process and have your say. Instead of mere wealth management; we help you in creation & multiplication of your wealth with smart use of technology.
- We want to shift the mindset towards wealth creation rather than merely managing wealth.
Myth: Sip investments can’t be done in equities.
- It is a myth that SIP investments can only be done in Mutual Funds.
Reality: We recommend staggered purchase while buying stocks.
- SIP is possible in equities as well. We recommend buying stocks in SIP manner in our model portfolio.
Myth: Investment platforms offering off-the-shelf (third-party) investment products are free.
Reality: There are no free lunches.
- It may give you an impression that the service is being offered at no cost, but it is not often true. Several advisors get their income by way of commission/fee earned on the recommended third party products. At Research and Ranking, we transparently charge only our advisory fee and the more you invest, the less you pay in fees. Also check - How you can control your costs!!