• HDFC
• 29 Apr 2017
• Equity Product

HDFC, Tester

These terms refer to two different stock-picking methodologies. They are used for research, which helps you forecast the future growth and stock trends. Like any investment strategy, both have their advantages and disadvantages. 

Here are the defining principles of each of these methods of stock analysis: 

Fundamental analysis is a method of evaluating securities by attempting to measure the intrinsic value of a stock. Fundamental analysis studies everything from the overall economy to industry conditions to the financial condition and management of companies. 

Technical analysis is the evaluation of securities, which involves studying statistics generated by market activity, such as past prices and volume. Technical analysts use stock charts to identify patterns and trends that may suggest how a stock will move in the future.

Which strategy works best is always debated, and many volumes of textbooks have been written on both of these methods. So, do some reading and decide for yourself which strategy works best with your investment philosophy.