Showing posts with the label Investing Ideas

Four things to avoid while valuing a Stock

Four things to avoid while valuing a Stock There are two ways to value a stock before buying in the Equity Market. The basic method is Fundamental Analysis and the another one is Technical Analysis. Fundamental analysis is the study of the business of a company with some financial parameters. On the other hand, the Technical analysis is the study of the past prices of a stock. Those who engage in the Equity Market will use either of the above as a Tool. Whichever way you analyze, you need to avoid the four things that are going to be said. Otherwise, your investment or trade would go wrong. Don't love the Stock always Don't like your idea on Stock Avoid Herd Mentality on buying stocks Don't compromise with Stock vs Valuation Valuation is always important even it would go wrong. Great growth companies can be bad investments, if you pick it in the wrong price. Kindly share your views / comments with a smile :)

5 Available opportunities during the times of Recession

5 Available opportunities during the times of Recession Even before the onset of Covid-19, the Economic downturn had been going on for the past two years. The Trade war between nations, Border tensions and rising Debt in Advanced Economies and Emerging countries pose a challenge to further growth. However the Recession is said to be as Cyclical beyond Political reasons. We must overcome the Economic downturn days. At the same time, the downturn can lead to unemployment, poverty, Changes in Government policies and a negative impact globally. In times like these where only negativity occurs and we can turn some healthy things into opportunity. You may have realized this in the current situation. Some of the opportunities, Minimalism - To Spend low Sustainability Living Various Job opportunities in Different sectors Back to Agriculture - on Demand (Food Thought) Investments in Multi Asset Options Considering the disadvantage we have got as an opportunity, we can try to get

5 Quick Things to do in the Market Crash - 2020

5 Quick Things to do in the Market Crash - 2020 The Global Stock Market has risen rapidly from the Crash of March 2020. At the same time, the big question is whether the recessionary economy would recover faster. Most of the Listed Companies in India have reported their Q4FY20 earnings in the past two months. So, they are prepared to declare the Q1FY21 - quarterly results from the next month. While the Market predicted the economic downturn in advance and it was reacted before the Covid-19 Lock down. However the real Economic numbers are likely to come only on July and August 2020. Due to the Lengthy lock down, the Country's GDP could contract some and may be more. Inflation, Economic Growth - GDP, Industrial Production and Trade and Fiscal Deficit numbers would impact in the FY2020-21. The above said will drive the market in the upcoming weeks. Moreover the Global factors are also in the offing. However as a result of Optimism in the Market, it is mounting artificially. The real n

6 Key Points to be a learner on Personal Finance

6 Key Points to be a learner on Personal Finance The essential necessity of a human being is the one thing that we all know - Food, Clothing and Shelter. In the Modern age, the Basic Education and the Financial Security will be added as, 'Needs'. But we are leaving behind Financial Security and buying countless products and services without any need. When an individual is going to buy any Financial Products, one should be aware whether it is needful or not. Without knowledge of buying the above said things, it would trap into the unnecessary financial trouble. Therefore, one should aim to use every possible thing that you need or buy the required thing. That being said, there are six things that can be learned as a basic on Personal Finance, Understanding the difference  between Savings & Investment Inflation Financial Planning and it's Goals Delayed Gratification The Power of Compounding (School Mathematics) Think Investment like your own Business Our

Four basic thoughts for the Investor - Value Investing

Four basic thoughts for the Investor - Value Investing Investing can always be Boring. Day Trading is a day to day phenomenon. But in the reality, it's different. Would you be happy if you are making profits on Day trading regularly or Would you be enjoy your Daily Loss on Trading ? In fact, the Trading Strategy takes more time to research than the Investing. As for the Investing, you need to understand the Business primarily. Then you can dig into the fundamentals of the company. At the same time, the Trading is nothing but to speculate with the numbers. As for Day to Day trading, you have to make a speculative decision. But for an Investing, It's basics and its business valuation. I am not comparing between the Investors and Day Trader, but the time that you should think twice. Making a money means minimizing the initial loss or not causing the Entire loss. This is only available in Investment with more time. If you spend too much time on Day Trading, you can go for a Day Job

5 Basic things to follow before Investing

5 Basic things to follow before Investing The Proper Financial Planning tells you that one should follow the basic initiatives before going to Invest. Investment may be like Equity, Real Estate, Business, AIF or any investments which are considered as Risky. There are five basic initiatives are said to be as a Financial Backup to protect you. If your Personal Finance Advisor does not tell you about this, then you should ask this for your safe. Generally, the Financial Advisor is not just a Stock Broker or Insurance Agent. Even the Mutual Fund distributor who is selling Mutual Fund Products alone is not said to be a Complete Financial Advisor. A Personal Finance Advisor is like your Family doctor, where he cares and knows about your Financial Status and Family members. He really knows what you need exactly based on Personal Finance, appoint a nominee and plan for writing a Will. So, he should plan for the basic initiatives as per Financial Planning before you are going to invest. Yes, t

6 Steps to create an Investment Portfolio

6 Steps to create an Investment Portfolio Before investing your hard earned money (Monthly pay or Business) in any investment product, there are four key elements that you have to mind. They are the essentials of an Investment Opportunity. Needs and Wants Financial Goals Goal Period or Investment Duration Expected returns (Interest rate) % Simply putting your money in a Bank Deposit account or blindly investing in Equity - both will hurt you in the long run. One should consider the said above four elements to stay invested. For example, if Mr. X have a Financial Goal to buy a new house after 5 years. So, his wants or needs are considered here as, 'New House'. Generally, it is a Financial Goal. The Goal Period is about 5 Years. Finally he or she have to find the appropriate investment avenue to reach his 5 Years Financial Goal. On common, one should take less risk in a shorter period and take a moderate to high risk in the longer term to fulfill his Financial Goals.

5 Things to consider Financially during Covid-19

5 Things to consider Financially during Covid-19 In the face of both the Covid-19 (Coronavirus) and the Economic Recession, Financial Planning is Essential. It is important to note that every rupee spent unnecessarily in the current situation will affect the livelihood of others. The Unexpected Demand for Food and Internet service is beginning to increase, although most of the other services are not present. Keep the Food items in your home only when needed, you can buy for a week. Don't waste the Good Food. It is best to prepare and eat only on Hungry, as needed. This will make the Food available to others at a low cost. Staying home is not just idle, doing physical and Mental fitness for a while  encourages us to motivate. Focus on Good food - Nutrition and easily digested. Don't be fooled by the presence of TV, Mobile and other Tech Gadgets. You can create or work with your Favorite things at home, it's the time what you really feel in the past. Ignoring on Essential Com

How was the Nifty PE in the 2008 Financial Crisis ?

How was the Nifty PE in the 2008 Financial Crisis ? The National Stock Exchange's Nifty50 Index PE (Price to Earning) was 19.52 on Last Friday - 27th March, 2020. Earlier in that week, it was 17.15 on PE was a buying opportunity for the Stocks - 23th March, 2020. One of my investment buddy, Mr. Dev Asish, the Founder of Stable Investor ( He is a SEBI Registered Investment Advisor (RIA) ), had posted an article few years before about the guide to investing in Stock Market based on Nifty PE Ratio . Don't take the above instruction as an Investment advice. However this Price to Earning (PE) ratio of Nifty50 gives some insight into the Equity Market. That is, when you analyze a bunch of stocks with Good Fundamentals and you are planning to decide to buy that stocks - Now it's the time to look at the Nifty PE, whether i buy it today or later. While the Global Indices has claimed that the Covid-19 is currently taking place, but the Global Stock Market has been at peak for the p

Important things to do as an Equity Investor - Global Economic Crisis Fear

Important things to do as an Equity Investor - Global Economic Crisis Fear Instead of saying that the Global Stock Market Indices fell due to the Coronavirus attack, the Panic of the news is actually down to the Stock Market. This is not just for the Equity Market, but for the Common Economy. It can be said that the Economic Recession Fear of the past two years has now settled. The Global Economic news over the past few months has been the Brexit Deal, Crude Oil, US-China Trade war, US-Iran War Panic, Automobile Sales, Global Warming, China's Debt, the Covid - 19 and the Saudi Oil war. In addition, changes in the state's new policies, Recent Domestic amendments, Slowdown in GDP, Unemployment rate and the recent scenario in the Indian Banking System. Although the average human in the nation does not understand the exact reason for this, in fact the economy has affected them alone. After Globalisation, if there is a problem in the United States, it will affect India and if our Co

The Power of Entrepreneurship - Titbit

The Power of Entrepreneurship - Titbit When you get a Job and satisfied with that, you can't create a Social Value. Even after getting a job, you should focus on helping others to get a job or educate someone and lift their life. It's the devotion of Fundamental Education. The youth need to be enabled to become Job generators from Job seekers - A.P.J. Abdul Kalam When we get into the Business with new ideas, we can create a good social values. Employment will also increase, which will support for the Country's Growth. Entrepreneurship is a different one while comparing with a Business. Investing is not a matter of concern while pursuing Entrepreneurship, it's the Ideas which prepared to plan. Mentorship and Incubation is essential in today's Entrepreneurship. Even it's any Idea, Execution is important - So implement it. The availability of a business is not just Profitability, it is also mandatory to protect the People and Planet.  Another one myth is that an En

Three Important things to know if you are being an Entrepreneur

Three Important things to know if you are being an Entrepreneur Entrepreneurship Journey is not as easy as we think. Being an Entrepreneur is nothing but, Pledging your entire life for something you want to be. Even if you haven't lost anything in your life till now, Entrepreneurship Matters. Every time you make a mistake in your Entrepreneurship, it will push you Forward, not backward. The Success here is possible only if you patiently understand the Situation and move on to Learning. Otherwise, you would be trapped in the Magical Web of the Outside World. There are so many Business Plans and Models for Entrepreneurs to make Success in their Journey. The same Plans, Rules and models are also applied for Failure too. Who are preparing for their Entrepreneurship or those who are already involved as Entrepreneur, can learn about preparing Financial related things, Registering their Business and other Taxation Rules. The Three things to follow that one should learn being an Entreprene

How to create a long term asset by Stocks - Lesson 2

How to create a long term asset by Stocks ? - Lesson 2 We can add a wealth of excellence only through Long term Investing in stocks or shares. Generally, Bank Deposits and Postal Savings are referred as Small Savings Schemes. When it comes to Investing, the risk is always there. If there are fluctuations or volatile, then it is said to be as 'INVESTING'. Otherwise, it is just a Savings. For example, Bank and Postal Deposits are offering fixed rate of interest. Hence there is low risk or No risk on these savings instruments. These savings cannot afford Inflation and Tax Liability. Where in the investing, there is a risk between moderate to High. Better returns that can beat inflation and provide Tax Concessions. And it has a volatile - Up - Down - Up - Down. This is what the Gold, Silver, Real Estate and Business are doing regularly. That is the reason we can increase our wealth in the long run. Without volatile, we cannot make huge money or create wealth. We have to lookout at

Equity Investing Secrets - Lesson 1

Equity Investing Secrets - Lesson 1 Investing is an art for Wealth Creation. Although the Investing game with Equity varies in short to mid to Long term, and finally your long term friends succeeds. That's why i am happy to be a Long term Investor - Lot of Patience needs. For most of the human, the desire to make money immediately, to become Quick Rich. But there is no such thing has yet been found. There is no such secret to become Rich, but it's Wealth Creation Forever. And that is the reason why the Richest people in the world are more interested to build the Wealth and Relationship in the long run. The word, 'GROWTH' is defined to a Long term. We need time to grow our investments. If you are becoming a Millionaire in the next 5 years, then what next to do ? It's a $ Million question that you cannot quit your Career or Business after 5 years. We need experience, We need the continuous growth, We need profits and we really need a Wealth forever. So, we are trying

10 Things to prepare for a Healthy Financial Planning

10 Things to prepare for a Healthy Financial Planning Saying, 'Happy Birthday' to your friends is not the best relationship. We need to follow some things. We must share those things with our Friends - It's not only a healthy Friendship, but a Healthy Financial Planning. Here i am listing Ten Classic things that i loved. Share it with your friends if you like. You can also try to practice it in your daily life. Maintain Budget Planning Always find the good investment opportunities, but not a Ponzi Scheme :) Diversify your Investments, even Knowledge Take Proper Health and Pure Term Insurance Make use of Digital Payments, Learn to Save Tax Plan for the Retirement - It's important than your Child's Education Live Debt Free (No worries) Create Emergency Fund - Expect the unexpected events Start a Home Gardening Help others or Share your knowledge with others Life is not absolutely a beautiful thing. We are the beautiful heart to make Human

The Secret of the Rich and Poor

The Secret of the Rich and Poor The Secrets of the roads are that Short distance Travelers go fast and Long destination Travelers are generally going Slow & Relax We can keep a single home for our basic needs and convenience. With more than one house, it is not said to be an asset, if we had not generate any income. Instead, we have to pay the House tax, Insurance and other maintenance costs for Non-generated income house. There is no great or better difference between the Rich and Poor. With the money you have earned, what you are doing now with that is important. Self Control is very important to being Rich, you don't have to make anything to be as Poor. When we approach for the Personal Finance, mostly his financial habits determine whether he is poor or rich. If you have a Property or Asset, then it should be create a Regular Cash Flow or Income, Otherwise it will be considered as Liability. Most of us are not willing to take time to learn about Personal Finance and related

Interest rates for Small Savings Schemes - October 2019

Interest rates for Small Savings Schemes - October 2019 The Small Savings Scheme interest rate for Banks and Postal have been announced. While Interest rates for Small savings Schemes are low, still the interest rates for Provident Fund, Sukanya Samriddhi and Senior Citizen Savings were good in the face of Low Inflation. There is no change in the interest rate for the Period between October and December 2019. However in the current economic situation, the interest rate for small savings scheme seems Reasonable. The said rates for the July - September 2019 is to be followed in the current Quarter (October to December 2019) also. Generally, when the interest rate decreases, the Bond yield will increase. Similarly, if the interest rate increases, then the bond yield will decrease. In the Current Scenario, the Bank Repo rate seems low and Rate cut is also happening. One can use the Debt Funds through Mutual Funds in this Situation. The interest rate for small savings scheme has been slight

3 Key Factors for a Business Valuation - Stocks

3 Key Factors for a Business Valuation - Stocks Investing in Stocks can be a healthy one for Few People. For some, it can be a worrying moment. In any case, Investing in equity is just adding Wealth Creation for the Family. Small or Retail Investors may not be able to run a company like Listed Companies. They may not have the strength to manage it. But the few stocks in a listed company will also prosper in the Long run. The Main advantage of Small or Retail investors is that they can find good equity stocks and get the benefit of Compounding in the Long term. So, we are no need to do Big things, Invest in stocks what we know and find. Let that Company take care of its Corporate Growth. While there are several factors to analyze and find a good equity. Here are 3 Basic and Key factors that can be applied to any Business. Investors should therefore consider these three factors as a model for Business or Stock Valuation. Promoters Management & Corporate Governance Financial

How to prepare for Birthday Party Fund ?

How to prepare for Birthday Party Fund ? Celebrating the birthday of the Kids can be a personal delight for Every Parents. At the same time, the cost of a Birthday Party can have little impact on the Financial head of the Family. The Birthday Celebration of their Kids is much more important than anything else for some Parents. In this situation, when a cost is incurred as a Birthday Celebration, it will affect the Budget for a Family in the near term. However, this is a positive thing if we plan ahead of time. Planning for the Celebration and save for it one year before is worth a lot. For example, the proposed expense (Budget amount) for your Kid's Birthday Celebration is Rs. 15,000 (Lets assume). Time Horizon: 12 Months If you are starting with a monthly SIP of Rs. 1200/- in Bank Recurring Deposits or Mutual Funds, and the expected return is 7 Percent, then you will achieve the Target of Rs. 15,000 for the Kid's Birthday Celebration. So, we can named it as ' Birthday Part

Debt Free Life is a Bliss

Debt Free Life is a Bliss   Debt breaks Love. Not only the Love, the debt will broke everything if dealt as badly. Nowadays, Getting a loan is easy as it comes with a word, 'EMI'. It is not good to borrow money except if it requires strictly - Needs. If the debt is a problem for the Poor and Middle Class people, then it is a nuisance to the Rich and Businessmen.  Benefits of Debt Free Life: When it comes to Personal Finance, you can have Self Control. You have a thought before buying anything. You can do your favorite job, hobby or Business as you are Financially free. The First step to obtaining Financial Freedom is to go without debt or reduce the maximum debt. You can make sure of your Income & Expenses - Proper Budget Planning. Stress Free Life is a Bliss. You can communicate to anyone (Economically) without Fear You can see plenty of investment opportunities, if you are debt free. You can distinguish between the Needs and Wants You have a Financial Life without Shortag