How to choose the best stock for investment has always been a hot topic and people also want to learn how to identify such stocks themselves. If we are very good at it, then you have come to the right video. Actually, you are going to get a series of videos, through which you will be able to choose year-wise and year-wise i.e. short term and long term where you should invest? So today CA Ankush Jan has joined us. Ankush ji is a chartered accountant. Along with this, Ankush ji is also a registered professional. So he is a research analyst. He also does research himself and helps his clients to identify such stocks. But today that profit is going to be yours, if you watch this video till the end. Actually, watch the upcoming videos. So Ankush ji, how do you explain the whole process yourself, very frankly, how do you do the analysis from the beginning and how do you reach those stocks on which people’s money can grow manifold, one way is to use the top down approach or bottom up approach. There are two types of approaches. There are five types of points in it in which you have to analyze many things. So I will tell you five points, which things, which parameters you have to look at carefully. The first thing is which approach are we talking about first. First of all we are talking about top down approach, meaning we are coming from top to bottom. So friends, see these two approaches which we talked about, top down and bottom up, look at the bottom, the company whose stock you should invest in will always come down and macro economic factors will come at the top. After that when you reach the industry, then maybe they will just tell you the limitations. But many people also don’t know what are these two types of approaches, yes, so basically in top down approach it happens that you don’t know the name of the company, you don’t know what to choose, you don’t know which stock can multiply in the coming time, become a multibagger or give you good returns, you don’t know that, in that case we use top down approach and we use bottom up approach when we feel that this particular stock can multiply in the coming time, well, at that time only we use bottom up approach, then we do a deep analysis of that stock, we do a deep analysis of that stock, after its analysis we look at macro economic factors, as you said last time we look at macro economic things when we go from bottom to top when we adopt top down approach, first of all we have to see how are the macro economic factors for the whole country, how are the interest rates going, how are the capital flows going, how is your currency market going, How is your commodity market going and finally you have to track the index as well, the index of that country. You have to track the index so that you can understand how the economy of the market is performing because the index is the thing that tells in which direction the market is moving. Right now we are already standing at a very high range in the index, in such a situation anyone can get scared but if he tries to understand proper macro economic analysis keeping all these factors in mind, then he can well understand that even today there can be some potential stocks which can give multifold returns over time. So the first thing we have seen is that we have to look at the macro economic factors. See, this thing is very important for big institutions. Suppose there is an institution called FII which has money but it has to see on which of India, Africa, Sri Lanka or Pakistan or Bangladesh it should bet. So now whether to bet, which company to invest in, we will see this later. We will see how the macro economics of these countries are going. And for that, as Ankush ji told earlier, the index of that country will be seen. If the index of that country is doing well, then it is a good sign. And apart from this, many factors were named like currency, you will see whether there
is a lot of depreciation in the currency or not, how is the growth happening there, then many development possibilities will also be seen. So this is the study of macro economics.