Making a Smart Investment

Private equity is a type of finance which are not traded as stocks in exchange market and instead are those assets which consist of securities and debts.  This type of investment is popular among new investors who would like to make a risk free investments and earn a marginable profits from other companies. A private equity firm is an organisation or an individual which makes investments in other companies and organizations for buyout, or their development and growth of these companies which is organised on basis of some loosely affiliated strategies.


PE Funds India
PE Funds India


There are some clever ways which private equity firms have adapted lately to make these funding. After a series of loss suffered by many of such private firms they have now started to make smart investments. The following are some major steps that can be taken ahead or during the process of PE fund in India:

Smart Pre-Analysis:

It is very important to make clever judgment about the future of a product or company before investing in it. In this new era of startups and innovation, thousands of great ideas and projects are coming up everyday. Many starve out of lack of funding and many after fine investments suffer great losses. A good analytics report making accurate future projections for the company is very important so that the coming years can bear fruits.

Diligence report examination:

Most of the private equity firms use third parties to make the diligence report for the companies before investing in them. However convenient it may sound, many of the firms have suffered huge losses in the past because of not cross checking the report.  Any diligence report must be cross checked before making an investment as this would insure that ‘a stitch in time saved nine’.

Read quarterly reports:

Detailed study of quarterly reports must be always  taken seriously as this may predict the future of the company before any further steps is taken in the their regard.

Many investment firms have been seriously involved in this changing scenarios to improve the standards of private equity investments in India. Everstone Capital partnered by Atul Kapur is one of the people who is making some revolutionary changes  in the world of investment.

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