Institutional investors have a really important place in the financial markets. Institutional investors have two advantages over retail investors. The first advantage is sheer size. The amount of capital that institutional investors have at their disposal to invest in various holdings is far greater than the amount of capital that retail investors have at their disposal.
Therefore, institutional investors can make greater profits by taking bigger positions. The second advantage that institutional investors have is that they have access to analysis that can help them see things which are not visible to the common retail investor. There is a lot of number crunching involved in the stock market. Having access to algorithms, powerful computer systems and a talented group of quants and traders often gives institutional investors an edge in terms of analysing raw data better.
However har sikke ke do pahlu hote hain. Isliye institutional investors Apne size ki vajah se nuksan bhi karte Hain. If a trade goes wrong, then an institutional investor will need more time to get out of the trade because he has much bigger holdings as compared to a retail investor. Clearing a position of 10,000 rupees is much easier and quicker than clearing a position of 10 crore.
Before we talk about why people track the investment behaviour of institutional investors, and how you can do it, let's first answer the question: who are these institutional investors? Institutional investors are simply financial organisations like banks, hedge funds, insurance companies, pension funds and other wealth management organisations. All of these companies have vast amounts of cash with them that they can then invest in the equity and debt market to make a profit.
You should track an institutional investor for the same reason that you should track other variables in the market such as the trend of the world economy, emerging new sectors, decaying old sectors, etc. Making profits in the stock market is all about seeing the future before everyone else does. Tracking the behaviour of institutional investors can let you do just that.
So let's talk about how you can track institutional investors’ behaviour. Institutional investors like mutual funds are legally obliged to reveal their holdings in quarterly reports. Inn reports ko theek se padh kar aap pata laga sakte hain ki institutional investors ka interest kaunse stocks mein hai.
Institutional investors ko follow karne ka ek aur tarika yah hai ki aap stock market mein volume buys per najar rakhen. Whenever you see a volume buy of a particular commodity or an asset, then you can assume that there is perhaps an institutional investor behind that trade. Retail investors simply do not have the cash availability required to make such volume buys.
Some retail investors also like to follow institutional investors on Twitter and check the interviews of people who are managing big funds. This can sometimes reveal the direction in which their thinking is headed. Institutional investors ke behaviour Ko dekhkar aap kafi kuchh seekh sakte hain.
Institutional investors ko copy karne ka motivation Hum samajh sakte hain. Stock market mein ek Alpha naam ka measurement hota hai. Alpha measures whether a particular stock performs better or worse than the benchmarked index. Benchmarked indices kya hote hai isse example ke saath samajte hai. An example of a benchmark index would be NIFTY 50. NIFTY 50 is the weighted average of 50 companies on the stock market with the highest capitalization. matlab These benchmarked indices track the general direction of the stock market.
If an institutional investor’s Alpha number is 5, then that means that the investor has seen 5% greater results than the benchmark index. A lot of institutional investors have really impressive alphas. Therefore retail investors get tempted to copy their each and every move.
Per investors ko directly copy karna bhi intelligent decision nahin hai. First of all, your goals, investment horizons, and risk appetite might be very different from that of the institutional investor you’re copying. Ho sakta hai ki aap ka gol ho invest karke 2 sal mein ek foreign vacation fund karna.
On the other hand, the institutional investor could be preparing for his retirement fund. Iss wajah se institutional investor ka time horizon aapke time horizon se bahut jyada ho sakta hai. The institutional investor will be attracted to positions which have steady and reliable returns over an extended period of time. Your needs on the other hand may be very different.
Further, it's possible that aap institutional investors se jyada income risk-averse ho. Trading, like any other activity in life, is an expression of who you are as a person. Some people prefer to take bigger risks to be able to make bigger profits when their bets are right.
Other people prefer to be conservative in their dealings and stick with stocks that have given investors historic returns. Additionally, copying an institutional investor makes no sense for intraday traders and people who like to clear their positions in short periods of time.
Finally, even great investors with phenomenal track records can make losses sometimes. The stock market never favours anyone all the time. Therefore agar Aap ne apne investing decisions 1 investor ke behaviour par hi base kiye Hain, aur agar uss investor ke predictions sahi nahin nikalte, to aapko bhi Bhari nuksan ho sakta hai.
Self-awareness is one of your best friends when it comes to investing in the financial markets. Learn from everyone you can - but at the end of the day, figure out your own needs, time horizons, and risk-appetite - and base your investing style on that.
चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।