Last updated on September 14, 2023
Since 2012, the Gurugram-based asset management firm Prudent Equity has provided services to family offices, HNIs, and retail investors. Prudent Equity has dedicated itself to helping individuals, families, and corporations by offering practical guidance on their stock investments ever since it was founded. Stocks that meet their stringent investment standards are used for investments. The organization is not afraid to hold onto capital if security doesn’t match the firm’s unique investment standards.
The company has a qualified team of professionals who bring knowledge and experience from various investment backgrounds. Twenty-seven years of full-time experience in proprietary investments are brought by their Founder and Chief Investing Officer- Siddharth Oberoi. The business believes that extensive and involved research can produce extraordinary investment returns.
Customer Ratings
Based on customer feedback, Prudent Equity Limited’s customer rating include:
| Criteria | Ratings |
| Subscription Fees | 6.5/10 |
| Short Term Tips | 6.5/10 |
| Long Term Tips | 7.0/10 |
| Intraday Calls | 7.3/10 |
| Services | 6.8/10 |
| Overall | 6.8/10 |
| Star Ratings | ★★★☆☆ |
Key strengths of Prudent Equity as a Brokerage Advisory firm are:
1) Capital Allocation – The practice of distributing and investing money in different assets or initiatives inside a business or investment organization is referred to as capital allocation.
Based on their financial goals and risk tolerance, customers can make informed investment decisions and optimize their portfolio allocations with the aid of Prudent Equity with good capital allocation capabilities.
2) Margin of Safety – A key idea in risk management and investment is the margin of safety. It refers to the discrepancy between an investment’s inherent worth and its market price. To provide a margin of safety in the event of any unanticipated occurrences or market swings, Prudent Equity emphasizes the margin of safety principle, which focuses on discovering investments that are trading at a considerable discount to their underlying value.
3) Corporate Governance – Corporate governance is the set of laws, customs, and procedures that regulate and control an organization. It supports trust and confidence among investors and other stakeholders by ensuring openness, accountability, and ethical behavior within a business. Due to its strong corporate governance, Prudent Equity is more likely to offer trustworthy and unbiased counsel, successfully manage risks, and uphold the highest levels of expertise and ethical behavior.
How to register with Prudent Equity-
- Research and selection: The investors must gather information about Prudent Equity to evaluate their services, reputation, fees, and other factors to ensure they align with their investment goals. Then they must go to the official website of Prudent Equity and look for a “Click for Registration” button, which is usually prominently displayed on their homepage.
- Account type selection: Investors need to choose the type of account they want to open, such as an individual brokerage account, joint account, retirement account, or any other relevant option to make sure it matches their investment objectives and requirements.
- Application form: The investors need to fill out the online application form with accurate and relevant information. There, they need to provide personal details, contact information, employment details, social security number (or equivalent identification number), and other financial information.
- Documentation: Investors must prepare the required documents, such as identification proof (passport, driver’s license), proof of address (utility bills, bank statements), and other financial statements (income details, tax returns).
Prudent Equity requires a verification process to confirm the investor’s identity and ensure compliance with regulatory requirements. This may involve submitting scanned copies of their identification documents or undergoing a video call verification. - Funding the account: Once the application is approved, investors must fund their accounts. This typically involves transferring funds from their bank account to the brokerage account through various methods such as bank wire, electronic funds transfer (EFT), or online payment systems.
- Terms and agreements: Review and agree to the terms and conditions, account agreements, and any other legal documentation provided by the firm. After completing the necessary steps, the investor’s account will be activated, and they will receive login credentials and account details. Further, they can then access their account online and start investing or trading, depending on the services offered by the firm.
The different stock picks or recommendations provided by Prudent Equity are:
- Stock Recommendations: Keeping in mind market conditions and stock exchange indexes, the firm provides recommendations on which stocks to purchase and what returns can be anticipated.
- Value Picks: Prudent Equity provides recommendations for the purchase and sale of various stocks+ based on the worth of returns and calls.
- Long-Term Recommendations: The firm conducts thorough fundamental analysis and makes suggestions regarding the potential profits from long-term investments.
- Cash Stocks: The company provides recommendations on the buy and sell prices of the stocks. Additionally, it outlines the predicted returns over a specific time frame.
- Intraday Calls: The majority of the advice is related to intraday calls, as well as options calls, future calls, etc.
Prudent Equity Services include:
- The advisory firm has been recognized for delivering good and correct suggestions and guidance to its clients.
- Prudent Equity is well known for the services and recommendations it provides to its clients concerning any stocks and investments.
- The business assists its customers in selecting equities and making investments that will yield higher profits.
- The recommendation firm serves and provides its customers with useful information on long-term picks. It also assists in selecting stocks that will be profitable over the long term.
- Clients interested in dealing with Microcaps and portfolio restructuring are assisted by the firm’s skilled research staff.
Prudent Equity Subscription Fees
| Duration | Fees |
| 1 Year | Rs. 21,500 + GST |
| 2 years | Rs. 38,000 + GST |
Pros and Cons of Prudent Equity:
Advantages-
- Reputation: Prudent Equity has established a strong reputation for delivering high-quality and effective services to its clients. The positive feedback and minimal complaints about the firm’s recommendations or services indicate that they have been successful in meeting their client’s needs and expectations.
- Prioritizing the customers: One of the firm’s top priorities is customer satisfaction, and they have been able to achieve this by providing a good customer support facility. By prioritizing the needs of its customers and ensuring that their concerns are addressed promptly and effectively, the firm has been able to maintain a high level of customer satisfaction.
- Outstanding Research Team: Prudent Equity boasts a skilled and experienced research team that provides excellent tips and methods regarding investments and the stock market. This team is responsible for conducting in-depth research, analysing market trends, and identifying potential investment opportunities for their clients.
Disadvantages-
- Lack of advisory services: Short-term investors or traders often rely on advisory services to make quick decisions in the market. If the company does not provide such services, it may not be suitable for those looking for short-term trading support.
- Absence of free options: Without a free option, potential clients are unable to personally assess the company’s performance or test its services before committing to a paid plan. This lack of opportunity to evaluate the company’s performance may deter short-term investors who prioritize assessing performance before making investment decisions.
- Restricted service plans: The limited and restricted nature of the services offered by the company may not align with the needs of short-term investors or traders who typically seek flexibility and diverse options.
Conclusion
Prudent Equity is a bottom-up value investing strategy to find firms that are trading for much less than their actual worth, offering great upside potential with little risk on the downside. Although capital protection remains the guiding principle, their technique has been shown to produce disproportionately large rewards.
They have a strategy that places a focus on a company’s unique characteristics, such as fiscal responsibility, wise capital allocation, management that shows sharing wealth with minorities, distinctive goods and services, pricing power, and many more.