What is Equity?

At Legal Finance Wale, we specialize in managing equity portfolios with a sharp focus on long-term wealth generation and risk management. Founded on the principles of integrity, transparency, and long-term value creation, we strive to help our clients navigate the ever-evolving financial landscape with confidence.

Co-founded by Harshit Jain, an MBA in Finance and a Company Secretary with over 15 years of experience in the financial industry, we specialize in managing equity portfolios. We currently oversee a portfolio exceeding ₹10 crore across PMS and equity investments for multiple clients. Our expertise lies in identifying value-driven opportunities and implementing strategic investment decisions aimed at delivering sustainable growth while prioritizing wealth preservation.

Our Approach to Equity & PMS
✅ Meticulous Research: Every investment decision is backed by thorough market analysis, financial scrutiny, and industry insights.
✅ Tailored Strategies: We customize our PMS solutions to align with each client’s financial goals, risk appetite, and time horizon.
✅ Wealth Preservation: By adhering to a disciplined value investing approach, we prioritize capital protection while aiming for steady growth.

At Legal Finance Wale, we don’t just manage investments—we build lasting financial partnerships based on trust, transparency, and performance. Our mission is to empower our clients to achieve financial freedom and secure a prosperous future.

How Does Equity Work?

Equity works by giving investors a share of ownership in a company. When you buy equity shares, you become a shareholder, meaning you own a portion of the company. This ownership gives you rights such as receiving dividends (if declared) and voting on important company matters.

The value of your equity investment increases or decreases based on the company’s performance and stock market movements. If the company grows and becomes more profitable, the value of its shares usually rises, allowing you to earn a capital gain if you sell at a higher price.

Equity is typically bought and sold on the stock exchange. Prices fluctuate due to various factors like company earnings, industry trends, economic conditions, and investor sentiment. Because of these factors, equity investments involve a certain level of market risk, but they also offer the potential for higher returns over the long term.

In summary, equity works by allowing individuals to invest in companies, participate in their growth, and potentially earn profits and dividends, while accepting the risks involved with market fluctuations.

Types of Equity

1. Common Equity: This refers to the regular shares owned by shareholders in a company. Common equity holders have voting rights and may receive dividends. They are last in line to receive company assets in case of liquidation.

2. Preferred Equity: Preferred shareholders receive fixed dividends before common shareholders and have a higher claim on assets. However, they typically do not have voting rights.

3. Private Equity: This refers to investments made in private companies (not listed on stock exchanges). Private equity is usually provided by institutional investors or venture capitalists to fund business growth or buyouts.

4. Public Equity: Public equity is the ownership of shares in publicly traded companies listed on stock exchanges. These are accessible to individual and institutional investors through the stock market.

5. Shareholder’s Equity: This represents the net value of a company, calculated as total assets minus total liabilities. It shows the company’s financial health and is also called owner’s equity or net worth.

6. Equity Mutual Funds: These funds pool money from multiple investors to invest in equity shares of various companies. They are managed by professional fund managers and are a popular way for individuals to gain equity exposure.