Direct Equity

    Participate directly in India's growth story. Buy and sell shares of companies listed on NSE & BSE for long-term wealth creation.

    Wealth Creation through Stocks

    Long Term Investing

    Investing in quality companies with strong fundamentals. The goal is to hold these stocks for years (3-5+ years) to benefit from the power of compounding and business growth.

    • Bluechip & Large Cap Stocks
    • Dividend Yield Stocks
    • Value Investing Strategy

    Trading & Derivatives

    For aggressive investors, we provide platforms for Intraday trading and Futures & Options (F&O). Note: F&O involves high risk and requires deep market understanding.

    • Intraday Equity
    • Nifty & Bank Nifty Options
    • Technical Analysis Based

    Our Investment Philosophy

    Fundamental Focus

    We believe that stock prices eventually follow earnings. Our focus is on identifying businesses with sustainable competitive advantages (moats), high capital efficiency, and honest management.

    Risk Management

    Capital preservation is our first priority. We strictly adhere to stop-loss disciplines in trading and margin of safety principles in investing to protect your portfolio from severe drawdowns.

    Prerequisites for Direct Equity

    Demat Account

    To hold shares in electronic format. Mandatory for all stock market transactions.

    Trading Account

    To execute buy and sell orders on the stock exchanges (NSE/BSE).

    Bank Account

    Linked to trading account for fund transfer.

    Direct Equity vs. Mutual Funds vs. PMS

    FeatureDirect EquityMutual FundsPMS
    Minimum to startCost of one share₹500 SIP₹50 lakh
    Who picks stocksYouFund manager, pooled portfolioPortfolio manager, individual account
    DiversificationOnly what you build yourselfBuilt-in, dozens-hundreds of holdingsDeliberately concentrated, 15-30 stocks
    Effort requiredOngoingMinimal after selectionMinimal day-to-day but active tax review
    Tax tracking burdenEntirely on you, every tradeNone until redemptionSignificant annual reconciliation
    CostBrokerage + STT + demat, no management feeExpense ratio in NAVManagement or performance fee + GST

    This is a trade-off in effort and cost, not simply a question of one route being "better" or "worse."

    How Direct Equity Is Taxed

    Short-term capital gains

    Shares sold within 12 months attract short-term capital gains tax at 20% flat.

    Long-term capital gains

    Shares sold beyond 12 months attract long-term capital gains tax at 12.5%, with the first ₹1.25 lakh per financial year exempt and no indexation.

    Securities Transaction Tax

    STT is roughly 0.1% and is applied automatically on both the buy and sell leg of delivery-based equity transactions.

    Dividends

    Dividends are added fully to taxable income and taxed at the investor's applicable slab rate.

    F&O Trading Is Taxed Differently

    Futures and options trading is treated as non-speculative business income taxed at the investor's slab rate, not as capital gains.

    A mandatory tax audit under Section 44AB applies above the relevant turnover thresholds. F&O losses can offset most other income and may be carried forward for up to 8 years, subject to the applicable income-tax filing requirements.

    Who Direct Equity Investing Suits

    Tends to be a good fitTends to be a poor fit
    • Already has a diversified mutual fund core and adequate emergency fund.
    • Has genuine time and interest to follow individual businesses.
    • Wants a higher-conviction satellite sleeve alongside a diversified core.
    • Is comfortable tracking and reporting capital gains themselves.
    • Can emotionally hold through a 30-40% drawdown in a single stock without panic-selling.
    • This would be a first-ever investment beyond a savings account.
    • Wants a set-it-and-forget-it investment.
    • A handful of stock picks would represent most of their net worth.
    • Prefers the fund-level tax simplicity of mutual funds.
    • Checks portfolio value daily and reacts to short-term price moves.

    Research-Led Direct Equity Guidance

    Money n Wealth can help assess whether direct equity belongs alongside your diversified core, align the allocation with your risk capacity, and provide access to research-led solutions tailored to your requirements. The objective is disciplined portfolio construction and informed decision-making—not short-term stock tips.