'Intellectual approach' needed for investors buying shares

"Remember, a stock is nothing but a stake in the company's business," according to Raamdeo Agrawal, author of a wealth creation guide issued by a global Indian diversified financial services, Motilal Oswal Financial Services Ltd. "So, observe the company's business and the entry barriers created by it."

Motilal Oswal is one of the 10 major companies belonging to India's banking, financial services and insurance sector (BFSI) that are participating in the ongoing 8th Khaleej Times India Investment Show, at Dhow Palace Hotel.

It is peddling its product and services some four million non-resident Indians (NRIs) and people of Indian origin (PIO) in the UAE and the five other member-states of the Gulf Cooperation Council through a five-point guide on how to invest in financial services.

"It is much more important to buy cheap than to sell dear," the guide says, noting that investors must choose a company whose leaders are competent and passionate about their business.

"An individual with a local degree combined with a passion would have greater growth prospects than the one who has a Harvard degree but no passion," it says.

It adds that a company management with integrity is also bankable because it means that it is fair to its smallest stakeholders, which form the bulk of retail investors. Tata Group, India's largest private sector group with over 98 companies in various sectors, and business consulting and outsourcing provider Infosys are best examples of a great company.

The foreign exchange bureau Al Rostamani Group, through its financial services division and cameo wealth management, is also participating in the two-day event, which opened yesterday. It showcases its various remittance services to over 80 banks in India in one to three days.

The group also offers a single-window platform for all "India-centric" investment needs such as international public offerings (IPOs) and mutual funds, portfolio management services and the facilitation of investing in Dubai Financial Market and Abu Dhabi Securities Market, among other things.

Another exhibitor, Kotak Mahindra Asset Management Company, points out investment opportunities in infrastructure across multiple sectors such as industrial, construction, metal and mining, telecommunications, logistics, utilities and finance.

It says that the Planning Commission in India has estimated infrastructure investments in the country to reach $509 billion (20 trillion rupees) over the 11th five-year plan between 2007 and 2012.

For its part, Induslnd Bank is offering a full range of services including wealth and remittance services to NRIs-PIO in the GCC region through its strategic alliances with Doha Bank in Qatar and Union National Bank in the UAE.