What is Fundamental Analysis

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The Fundamental Analysis of stocks is the cornerstone of investing.

Fundamental Analysis is a holistic approach to study a business. When an investor wishes to invest in a business for the long term ( 3 – 5 years) it becomes extremely essential to understand the business from various perspectives.

Fundamental   Research is a method of valuing securities based on the growth prospects and attractiveness of the underlying business.

Fundamental analysis takes into account three types of analysis:

  • Economy analysis
  • Industry analysis
  • Company analysis