smart investing how to maximize returns with sharpely
In the world of retail investors, there are 2 types of investors. The first type includes investors that invest based on tips, hunch, and news channel recommendations. These investors buy and sell very frequently and ultimately end up with little gain or losses. The second type includes smart investors who follow a solid investment process. They analyze the company, and the sector in which it belongs and then make informed investment decisions. These investors don't buy and sell in a hurry and end up with substantial gains.
So, In this blog, we have decided to give you a step-by-step guide on how you can become a smart investor. We have also tried to define an investment process using the tools of sharpely that you can follow in your investment research.
With sharpely, you have high-quality raw and processed data that you can use to make smart investment decisions. You can use the sector analysis tool to find the best sector as per your investment style. You can also use stock screeners and signals to filter out the stocks based on your strategy. Once you have a list of stocks, you can use our stock scores and detailed scorecards to gauge the overall quality, value, and momentum of the stock. You can then dig deeper into the financial statements, ownership, and peers to fundamentally analyze the stock.
With different levels of risk appetite, your strategy will change. But sharpely has all the tools required to create, analyze and implement a winning investment strategy. So let’s take one example and create a framework to understand how you can unleash the power of sharpely in your investment analysis.
We will use a top-down approach for this. So you can start looking at a sectoral level to find out which sector has tailwinds and which stocks are expected to perform or are already performing well. For that, you can use our sector analysis tool.
Or, you can create a screen. And we have one of the most advanced screeners available to retail investors with more than 200 metrics to choose from. For example, you can filter stocks with a market cap over Rs 500 cr. with ROE and ROCE above 12%, and have shown sales growth of at least 10%. Then you can apply valuation parameters like P/E or P/B to filter out suitable stocks. Are you an advanced investor and want to control the weightage of each parameter? We have got you covered. You can use signals for highly personalized screening. Discover the advantages of signals here.
And to make things even better you can backtest your strategy! Out of all the platforms available only sharpely has made it available to retail investors. You can see how the screen and strategy would have performed in the past. Based on that you can tweak the strategy and generate solid returns. You can find more about it here.
If you don’t follow rule-based investing and want to identify one or two stocks from the screened list, then there are a plethora of features to use. You can use stock scores where you will find a proprietary quality, value, momentum, and combined score. You can also analyze the stock fundamentally by looking at the fundamentals sections which cover all the important ratios like return ratios, margins, solvency ratios, etc.
You should also check the expected business growth and headwinds/tailwinds of the sector. On top of that you should check industry dynamics, moats, competition, quality of management, etc. You can find these details from con calls and annual reports. We are in the process of adding them on sharpely so that you can directly use them.
We hope that you will use this 3 step process as a reference and will be able to create your own investment strategy. Following a solid investment process, you will be able to find hidden opportunities and be able to avoid the noise.
And that is not it! We believe that any active equity investors should check their curated investment portfolio once every three to six months. And for that, we have a very specific tool for you. We call it the earnings dashboard. As you know, research firms set estimates for future growth in earnings. Using this tool you can find out whether quarterly reported numbers are in line with the expectations or not. This tool may help you catch underperformers early in your portfolio.
Here is a snapshot of all the available tools for stocks on sharpely.
But what if you don’t invest directly in stocks and prefer investing in mutual funds and ETFs? Don’t worry, we have plenty of tools for you too!
When it comes to passive investing, many investors prefer high return mutual funds and ETFs. But how do you select the best funds for yourself? Well, that depends on a number of factors. For example, your risk tolerance, age, and investment horizon are some of the most important factors when selecting mutual funds.
So, once you have a clear idea of the risk-tolerance, you can find the right mutual funds or ETFs using MF/ETF screener. We have more than 100 parameters at your disposal so that you can find the right category of the fund first and then find the most suitable funds for you.
After finding a list of funds, you can compare them in-depth using compare MF/ETF tool.
You can also compare the relative outperformance of the fund using our alpha analysis tool These tools will help you identify the right one or two funds you can choose for your investments. We have written an in-depth blog series on how to find the best mutual funds for you. You can find it here.
Here is a snapshot of all the tools available for MFs. The same tools are available for ETFs as well.
Now if you are a working professional or run a business and do not have enough bandwidth to do any kind of research but still want to invest in stock markets, we have got you covered as well! For you, we have created curated baskets, customized MF and ETF portfolios according to risk levels.
These portfolios are created by experts in the field who have years of experience in the market and have consistently outperformed the benchmarks. As they are made using MFs and ETFs they help you with superior diversification and lower costs. These portfolios are ideal for long-term wealth creation. You can read more about them here.
In this blog, we looked at some of the best tools for share market in India and features of sharpely and how you can use them in your investment research. We believe that these features along with the top-quality data we provide will help you become an informed investor and will give you an edge. Whether you invest directly in stocks or prefer investing using MFs and ETFs, sharpely will help you in each step of your investment journey.
