Friday, December 29, 2017
Saturday, December 16, 2017
Monday, December 4, 2017
Should You Buy AEGON iINVEST INSURANCE PLAN?
I have not been a great admirer
of market linked Insurance Plans, popularly known as ULIPs, primarily
because of the amount of premium allocation being done by most insurance
companies towards buying the units of the Unit Linked Plans.
In most of the old ULIP plans
buyers have paid hefty percentage of their premium towards commission and
marketing resulting in fewer unit purchased and thus poor return on their
invested capital over the period. This happened primarily because of lighter
regulation and less awareness about the product. Agents promised hefty returns
and buyers in general didn’t question how? But with increased awareness and
much tighter regulation these days, one can again look at some ULIP plans from
trusted insurance companies which are offering even 100% allocation.
Friday, December 1, 2017
Saturday, November 25, 2017
Logic Kya Hai
Friday, November 24, 2017
Top 6 oldest posts on InvestorZclub
InvestorZclub was started about 7 years ago and has since then gained reasonable popularity with ~1000 Facebook followers and 3000+ feed and email subscribers. Since initial days the sole objective of the blog was to make stock investors informed, aware and empowered with posts ranging from direct stock analysis to explaining the working of stocks markets and timeless wisdom from some of the greatest investors.
Here are the top 6 posts which were published in the first year of this blog.
How is the price of a stock determined - 23rd Oct 2010
Warren Buffett Investment Criteria - 17th Nov 2010
The Potential Multibagger - 23rd Nov 2010
14 Timeless Wisdom from Rakesh Jhunjhunwala - 7th May 2011
DDM Stock Picking Strategy that works wonders - 24th May 2011
Ting Ting Tding - 27th May 2011
Also Read: Top 5 articles on InvestorZclub in 2014
Monday, November 13, 2017
Portfolio Update - 13th Nov 2017
Significant portfolio Update. Booked 22% gain on overall portfolio in just 3 months. Zero credit to my stock picking skills as such sharp appreciation was never expected on portfolio level and it all happened due to benign liquidity environment.
Please check the updated portfolio for more details:
Saturday, October 21, 2017
Friday, October 20, 2017
Friday, October 13, 2017
Red Flags in Reliance Industries Q2 FY 2018 Result
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUkEocPWYGmpjtkQjsQIhs-A8eItWP7WbyCFkfL0aMPdMIn-VYFZwqeJVB7dMOoLkSi3QM0z3frI1mG7lLb6Cj44tOg6zr2yCpIoYAgFaNQtXNuig0-i-CqCNgscZnN3ir5dBYGUFlD7I/s200/Reliance-Industries.jpg)
Current Asset to Current Liabilities, which
measure the liquidity position of a company stood at 0.58 in Sep 2017 vs 0.62 in March 2017. Any figure which is less than 1 is not very healthy. It is approaching
half which in my view is a cause of worry.
Very Low Interest Payout: Non current and current financial
liabilities (including trade payable) put together is roughly 3.99 lakh crores
while the interest outgo in the second quarter of FY-18 was only 2272 crores
which is just 0.57% for 3 months. No body gets loan at less than 2.3% per
annum. So the interest outgo is bound to go up very significantly in coming
years when the interest capitalization is stopped and the trade payable(> 84000 crores) are
paid / reduced.
Saturday, October 7, 2017
Thursday, October 5, 2017
How to choose between Fixed Deposits and Equity for investments?
Stocks Vs Fixed Deposits - Which one is better for you?
If your Investment horizon is less than 3 years, fixed deposits are better investments than equities as cyclicality might create huge volatility in stock prices in short term while if you have surplus that you can set aside for more than 5 years, diversified equity portfolio or Index ETF such as Nifty BeeS are much better choice as per the performance of different asset classes over the last century.
Saturday, September 2, 2017
How Good and Bad Credit Affects the Credit Score?
Credit is an
integral part of life today in the form of rolling credit when we swipe our
credit cards or in the form on various loans that we may take from time to
time. Gone are the days when credit was supposed to be a bad thing. Earlier
generations shied away from taking loans and borrowing was frowned upon. This
is changed in the past few decades, now loans are no longer a dirty word;
getting loans is simpler, and there are multiple avenues available for people
who are seeking credit. Credit per se is not bad and any stigma that may have
been attached to it has been removed in the last few years but the way the
borrower treats credit makes it good or bad.
Is Credit Good or Bad?
As stated above
the way credit is treated makes it good or bad and there is no good credit or
bad credit per se. So how does the borrower’s treatment make credit good or
bad?
All loans are
extended with an understanding that the borrower will repay then in a timely
fashion as per the agreed terms and conditions. This essentially means that the
borrower needs to pay the EMIs on time every month and in case of credit cards
pay the amount due on or before the due date. Not doing so means that the
borrower has defaulted on the payment thus apart from attracting a penalty
charges and interest there is a negative impact on the credit score too.
Repayment history is the biggest contributor to the score calculation and all
delays in paying EMIs and credit card dues are reported to the rating agency
thereby affecting the credit score negatively for a considerable time.
Saturday, August 12, 2017
Is Canada a Better Investment Haven in Troubled Times?
The Canadian dollar is enjoying an
imperious run of form of late. Between 1 May 2017 and 7 August 2017, theCAD/USD has appreciated by 7.8923% – a remarkable achievement. The loonie
(CAD) has rebounded sharply in recent months, owing to the improved performance
of the Canadian economy. The S&P/TSX compositeindex is currently down 0.59% for the year to date, with a 52-week trading
range of 14,319.11 on the low end, and 15,943.09 on the high-end.
However, over the past 1 month the index
has moved from 15,105.29 (July 10, 2017) to its current level of 15,197.84
(August 10, 2017). The slight appreciation is reflective of current trends in
the Canadian economy. Consider that the 1-year return of the S&P/TSX
composite index is 5.93%, spurred in large part by the uptick in commodityprices like crude oil, gold, natural gas, coal, and the like.
Canada is a commodity-rich country, with
some of the largest crude oil deposits in the world. Currently, Brent crude oil
is trading at $53.24 per barrel, and WTI crude oil is inching closer to the $50
per barrel level at $49.85. As oil prices rise, the Canadian economy
strengthens. As Canada’s chief export, crude oil has a large part to play in
the performance of the CAD. Rising prices boost the value of oil companies on
the S&P/TSX composite index. This in turn raises confidence in the Canadian
economy.
Thursday, August 10, 2017
Portfolio Update - Aug 2017
Model Equity Portfolio update after almost 4 months. Fully utilized cash to buy some good quality blue chip names for the portfolio. Please check the updated portfolio for details:
http://www.investorzclub.com/2013/03/amit-agarwals-model-portfolio.html
http://www.investorzclub.com/2013/03/amit-agarwals-model-portfolio.html
Saturday, July 15, 2017
Know About Tax Saving Options This Year (FY 2017 - 18)
Taxes form a good part of your
total expenses, and anyway who likes to pay lot of taxes. But the truth is, our
government allows tax saving on certain investments to bring about the saving
habit. Especially for a longer horizon of three to five years or more.
Thus, there are taxsaving investments which you will be using to save tax this financial year.
Similarly, some of these investments also remain tax exempt even at maturity.
Thus, all investments are divided in the following three categories:
- ETT: Investment reduces tax but any accrued interest is taxed in future years including the gain at maturity.
- EET: These will offer tax reduction in the year you invest, any interest accrued in future is exempt but the maturity value is taxed.
- EEE: These are completely exempt investments, that is, your invested amount is exempt, interest accrued is exempt and maturity value is also exempt.
Since EEE investments
are most tax efficient let’s cover these first.
Wednesday, June 21, 2017
Can a Personal Loan be Used to Pay Off Student Loan Debt?
One can argue that student loans are
the worst, and they could be right. Unlike home loans or auto loans which are
usually availed by well-settled and financially strong individuals, student
loans are to be repaid by young professionals who have just started their
carrier. Needless to say, they are often live on a shoe-string budget and have
to put a cap on all kinds of expenses to pay off the student loan debt. So, the
question is- can a personal loan be
used for paying it off?
It makes sense, right? Since a personal
loan can be used for any “personal” reason, why not repaying student loan debt?
In most cases, you are right in believing the same. However, it’s important
look at the idea from all perspectives.
The Bird’s-Eye View
The most important reason why you
would want to take a personal loan to pay off student loan debt is to enjoy a
better interest rate. If that’s not the case, you don’t have much to earn from
the deal.
You want to reduce your EMIs and
hence the financial pressure. Replacing a high-interest loan with a
low-interest one is one way to go. However, if you are not able to get a
personal loan with a lower interest rate then there is no point in applying for
it even. You also need to see if the interest rate difference is enough, to say
the least.
Friday, June 2, 2017
Thursday, May 18, 2017
Yes Bank: The Growth Machine
Having acquired the banking license
by RBI in 2004, Yes bank exited FY-17 with over 1000 branches and a balance
sheet size of over 2 trillion rupees. Its net worth has gone up over 2650% in
past decade from INR 800 crores in 2007 to 22000 crores in FY-17. The bank has
created tremendous amount of wealth for its investors since its listing, as the
stock has appreciated more than 3500% since its IPO price. Yes Bank issued its
maiden shares to public in 2005 at 45 rupees.
So what’s the secret behind such
success? Probably, right branding and technology focus has played a key role in
the kind of growth the bank has achieved. From the beginning itself, the bank
has invested heavily in brand building. In 2013, it signed a 5-year sponsorship
deal with IPL and the association seems to have paid off handsomely as it has
given significant visibility to the brand and acceptance among Indian people.
For IPL 2017, the bank was an associate sponsor.
The bank is investing heavily in
technology backbone and demand of the newer generation customers who prefer net banking over branch banking. Yes
bank has specifically focused on making its web and app based customer interfaces
simple and powerful. The bank also launched the star banking facility recently
where the customer can reach the bank by just dialing **2265 (Star Bank) which is
a generic number and very easy to remember. This kind of dialing facility is
already popular in western countries and is expected to catch up in India as
well.
Yes bank has increased its focus
on retail banking recently and has exited FY 2017 with over 1000 branches &
1785 ATMs and a target to achieve 2500 branches by 2020. With larger footprint
the bank is poised to get increasingly higher share of low cost deposits
and also diversified credit portfolio of home loans, personal loan, credit cards and other retail credits
which are relatively far safer than lumpy corporate loans. Considering the
capital position, technology backing and ambitious plans, the bank has
significant room to grow further and create wealth for all stakeholders in
coming years.
Thursday, April 27, 2017
Friday, April 7, 2017
Portfolio Update - April 2017
After 4 months of sitting on 100% cash, good opportunities seems to be emerging in some stocks. Sold all the liquid investments and bought few stocks that seems attractive for medium term investments. Please check the update portfolio for further details:
Monday, February 6, 2017
How to use UPI for a hassle free money transfer instantly
Unified Payment Interface or UPI is a joint
initiative by National Payments Corporation of India’s (NPCI), Reserve Bank of India
(RBI) and Indian Banks Association (IBA) to enable secure and extremely easy way to
transfer money between bank accounts. It’s a payment
mechanism which allows instant money transfer without the bank details. Instead
of bank account number and IFSC code, a virtual payment address (VPA) is used here.
To use this payment Mechanism one
needs to download the bank specific app, such as Axis Pay, on their mobile phone and create a VPA which will
be linked to their bank accounts.
A virtual payment address is an identifier that can be uniquely
mapped to an individual account. It can be thought of like an email ID for your
money that your bank uses to transfer money and make payments.
Saturday, February 4, 2017
Important candlestick patterns at a glance
Japanese Candlestick charting has almost become a defacto standard for studying price history of stocks / bonds / gold etc as each candle packs in a lot of useful information regarding the action on a particular day. However a series of candles together gives clearer picture in terms of the direction of the asset class. Following are some of the most important patterns that expert traders use to position themselves.
Thursday, January 5, 2017
Subscribe to:
Posts (Atom)
15 Stock Investment Tips from Rakesh Jhunjhunwala
1. Always go against tide. Buy when others are selling and sell when others are buying. 2. If you believe in the growth prospects o...
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9FJLB5adaPiRpu-pkVzJ3MUNFZuH0rhWB2m7VmoCUB3Qfyr3tBou32N2vyeoKFQD6iRLXgeDEKFNMPcdZNeZQZPIo4Q96ExAFK0Ho4Vnll1EDjnD1RxUTX_Y2hZci1Q-HdLnIMf_YYS0/s1600/rakesh_jhunjhunwala.jpg)
-
One of best book for beginners, William O'Neil has combined both Technical & Fundamental Analysis in this best selling book whic...
-
In USA over 80% while in India over 50% of trades are executed by trading algorithms. Beating trading algorithms, also known as algos, can b...