Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.
 
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Motilal Oswal Dynamic Fund (Div-A) - 11.5314Motilal Oswal Dynamic Fund (Div-Q) - 11.3873Motilal Oswal Dynamic Fund (G) - 11.9476Motilal Oswal Dynamic Fund-Dir (Div-A) - 11.8543Motilal Oswal Dynamic Fund-Dir (Div-Q) - 11.6683Motilal Oswal Dynamic Fund-Dir (G) - 12.2441Motilal Oswal Equity Hybrid Fund - Direct (G) - 10.0735Motilal Oswal Equity Hybrid Fund - Regular (G) - 10.0328Motilal Oswal Focused 25 Fund - Direct (D) - 17.078Motilal Oswal Focused 25 Fund - Direct (G) - 22.5267Motilal Oswal Focused 25 Fund (D) - 15.5781Motilal Oswal Focused 25 Fund (G) - 20.8236Motilal Oswal Long Term Equity Fund (D) - 15.1081Motilal Oswal Long Term Equity Fund (G) - 16.7206Motilal Oswal Long Term Equity Fund -Dir (D) - 15.9972Motilal Oswal Long Term Equity Fund -Dir (G) - 17.633Motilal Oswal Midcap 30 Fund (D) - 19.1Motilal Oswal Midcap 30 Fund (G) - 24.0337Motilal Oswal Midcap 30 Fund-Dir (D) - 20.4691Motilal Oswal Midcap 30 Fund-Dir (G) - 25.5447Motilal Oswal Multicap 35 Fund (D) - 23.2495Motilal Oswal Multicap 35 Fund (G) - 25.2846Motilal Oswal Multicap 35 Fund-Dir(D) - 24.3957Motilal Oswal Multicap 35 Fund-Dir(G) - 26.4464Motilal Oswal Nasdaq 100 FOF - Direct (G) - 9.8551Motilal Oswal Nasdaq 100 FOF - Regular (G) - 9.853Motilal Oswal Ultra Short Term Fund - Dir (Div-D) - 9.5502Motilal Oswal Ultra Short Term Fund - Dir (Div-F) - 9.5681Motilal Oswal Ultra Short Term Fund - Dir (Div-M) - 9.5571Motilal Oswal Ultra Short Term Fund - Dir (Div-Q) - 9.6944Motilal Oswal Ultra Short Term Fund - Dir (Div-W) - 9.5608Motilal Oswal Ultra Short Term Fund - Dir (G) - 13.5319Motilal Oswal Ultra Short Term Fund (Div-D) - 9.5571Motilal Oswal Ultra Short Term Fund (Div-F) - 9.5636Motilal Oswal Ultra Short Term Fund (Div-M) - 9.5541Motilal Oswal Ultra Short Term Fund (Div-Q) - 9.693Motilal Oswal Ultra Short Term Fund (Div-W) - 9.5571Motilal Oswal Ultra Short Term Fund (G) - 13.1586

5 key differences between investing and trading

When it comes to wealth creation in equity market, investing and trading are the two genres of the field. However, investing and trading are very different approaches of wealth creation or generating profits in the financial market. Imagine, today, you and your friend bought equal amount of seeds to sow in your fields but you sold them to someone in a day because you could earn profit. And your friend sowed the seeds and let them grow for a few years till they gave new seeds. He sowed the new seeds and continued this for years and sold a lot more seeds eventually than were bought. By investing his seeds he would have made profit quite different than what you made by trading your seeds. This is simply the difference in investing and trading. To learn the same in financial markets, let’s learn 5 key differences between investing and trading.

Period

Differences between Investing and Trading

Trading is a method of holding stocks for a short period of time. It could be for a week or more often a day! Trader holds stocks till the short term high performance, whereas, investing is an approach that works on buy and hold principle. Investors invest their money for some years, decades or for even longer period. Short term market fluctuations are insignificant in the long running investing approach.

Capital Growth

Investing Vs Trading

Traders look at the price movement of stocks in the market. If the price goes higher, traders may sell the stocks. Simply, trading is skill of timing the market where as investing is an art of creating wealth by compounding interest and dividend over the years by holding quality stocks in the market.

Risk

risk in investing and trading

Undoubtedly, both trading and investing imply risk on your capital. However, trading comparatively involves higher risk and higher potential returns as the price might go high or low in a short while. Since investing is an art, it takes a while to develop. It involves comparatively lower risk and lower returns in a short run but might deliver higher returns by compounding interests and dividends if held for a longer period of time. Daily market cycles do not affect much on quality stock investments for a longer time.

Art Vs. Skill

Let’s learn it this way, trading is a one day cricket match while investing is a test cricket. You would watch skillful players in the team who are expected to strike fours and sixes to score higher in a one day match. Whereas, the art of the game is seen in the test match! Similarly, traders are skilled, technical individuals who time the market and learn market trends to hit higher profits in the stipulated time. It is related to the psychology of the market. Investors on the other hand, analyze the stocks they want to invest in. Investing also includes learning business fundamentals and commitment to stay invested for a longer term. It is related to the philosophy that runs the business.

The ones who do

Winners of trading and investing

Traders put money in a stock for a short term. They buy and sell fast to hit the higher profits in the market. Missing the right time may lead to loss. They look at the present performance of the companies to hit the higher price and book profits in short term. Investors keep themselves away from the trends and invest in value. They invest for a longer period of time keeping an eye of the stocks they hold. They patiently wait till the stock reaches its potential. Ultimately, the ones who achieve their financial goals are successful!
Going back to our story, you are the one to decide if trading the seeds at a higher price making a smaller profit in a short time is your goal or holding on and growing more seeds to sell at much higher price in the long run is what you aim for.

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Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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