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Investment Tips: Business Congress funds give small investors an easy opportunity to invest in India’s largest and diversified business houses without any hassle or big cost. That too without any trouble and …Read more
Business Congress can be invested without risks. Jitendra Shriram, Senior Fund Manager (Equity) of BNP Pariba Mutual Fund, says that it is not easy for most common investors to buy shares of all group companies of these big Congress (coalition companies). A large amount of money is required to invest in so many listed companies of each group. Apart from this, it is also difficult to choose which business will be the most successful by going ahead among many of their different industries. All this together makes this work very difficult.
The major reason for this is the increase in the price from the dimer (dividing the company into parts) and restructuring (restructuring). When big companies list or sell their different business units separately, often the valuation of different parts is more than the entire company. For example, ITC detected its hotel business in a separate company. Raymond separated his lifestyle division and Hindustan Unilever separated the quality Walls Ice Cream Business.
Family dispute is also the reason
Due to family agreements and strategic sharing, ownership in businesses has become more clear. There has been more focus on business and the speed of growth has also increased. Apart from this, companies get cash by selling non-essential properties, which they can use to invest in new and fast growing sectors such as renewable energy, electric mobility and digital platforms. Some of these trends are also inspired by global corporate decisions of multinational companies (MNCs). For example, General Electric (GE) divided its business into 3 parts. Honeywell has announced its partition and the BASF India also shows the same to develop the business, then increase it and then separate the investors to give a chance to choose the part of their choice.
What is the benefit to investors
- Access to well -known brand: The opportunity to get a participation in India’s most respected and recognized companies.
- Diversity of sectors: The same investment provides exposure in many different industry.
- Professional Management: Experts choose the best performing business from every group.
- Participation in development and reorganization: Both expansion of companies and Value-unlocked are benefited.
Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist …Read more
Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist … Read more
