An analyst an Investor and vis--vis Advisor:
Reliability is a concern for Investor


By

Dr. Arun Kumar Singhal
Professor
MIMT
Greater Noida
 


Investor is the backbone of the business and whatever the things are happening may be positive and negative. It influence the investment pattern from Investors. Investor are from several background:

  • Technical background : having some knowledge to analyze the relevant factors of risk and growth attached with the investment area.
  • Non-Technical background : not having the suitable knowledge about the investment area and not able to analyze the risk and growth of that.

With the above two categories people those who are associated with the Ist category they themselves examine each and every things and study all the relevant information available for the enterprise and all times they are associated with the information what they are requiring to initiate for new investment avenues.

Here  the main concern of the discussion is the 2nd category people because neither they are having sufficient knowledge to examine anything about the risk and growth of the investment plan nor they have sufficient time to explore to arrive at a suitable decision in the investment world. They, themselves, found incapable to handle that situation and then decide to go with the analyst opinion.

Analyst who are well qualified and having the very good knowledge of investment style and all pattern and keeps on updating all time wisdom and knowledge.

They have capacity to provide to the investor's benefit good opinion with which 2nd category investor find an opportunity to increase wealth and money.

But some times investors get puzzled when they felt analyst are making money with the market by flowing information in the investment market for their interest then question arises to what extent investor should rely upon the information passes from them.

Some times investors get puzzled when looking at the market, they find that analyst may be a good evaluator i.e. a good advisor, of investment opportunity but they may be associated with the profit making team.

There may be so many circumstances where an investor got losses just because of dependency upon the advisor. People spent time to watching T.V. serial and gossip but not utilizing the precious mind with the hard worked money and relying on the advisors those are flowing information for their benefit.  

In the end: all investor should examine that to what extent information is reliable and can be utilized for maximizing growth and moreover they should minimize the total dependency on such advisor having double personality an investor as well as analyst.
 


Dr. Arun Kumar Singhal
Professor
MIMT
Greater Noida
 

Source: E-mail July 11, 2011

          

Articles No. 1-99 / Articles No. 100-199 / Articles No. 200-299 / Articles No. 300-399 / Articles No. 400-499/ Articles No. 500-599
Articles No. 600-699 / Articles No. 700-799 / Articles No. 800-899 / Articles No. 900-1000 / Articles No. 1001-1100
Articles No. 1101-1200 / Articles No. 1201-1300 / Articles No. 1301 Onward / Faculty Column Main Page