Explain the concept and steps of fundamental analysis and conduct it for

picking five company shares from different sectors through systematic

approach? Prepare a portfolio with these five company shares and explain
the eight characteristics of your portfolio?
One of the tools that investors use to manage their portfolios is fundamental
analysis. It is helpful in gathering the right information to make reasoned
decisions about how and where to invest. Successful fundamental analysis can
build a path to profits by allowing traders to separate companies that are
fundamentally strong from those that are fundamentally weak. Fundamental
analysis is different than technical analysis, which focuses more on price moves
and technical features of a particular stock's historical performance.
Fundamental analysis refers to a method of analysing and evaluating equities,
though it may also apply to other types of securities. With fundamental analysis,
income statements, balance sheets, cash flow and other publicly available
documents are used to analyse the financial health of a company. Economic data
such as unemployment numbers and interest rates may also be considered. The
goal with fundamental analysis is to find companies that are trading at a discount
from their true (or “intrinsic”) value and thus may increase in share price when
the market recognizes their quality.