Direct equity investment can be very rewarding, however, the risk of loss in direct equity is also very high. People who can balance R & R- risk & return while dealing with direct equity are the real winners. But how can one balance the risk & reward?
It is not easy to understand equity. One needs to understand the underlying business before investing in equity – more commonly referred to as stocks. Information related to equity is contained in companies financial reports like balance sheet, P&L reports, annual reports etc.
