Discounted cash flow (DCF) is of the more accurate financial models used to estimate intrinsic value of stocks. This method of stock’s price valuation is used by experts like Warren Buffett etc. What makes discounted cash flow […]
Free Cash Flow (FCF) is an improved version of net profit (PAT). What is easily available in company’s financial statement is PAT. But FCF must be separately calculated by the investors. Warren Buffett mentions Free […]
What is value investing? It is an investment strategy to buy quality stocks at “undervalued price”. What is undervalued price? A market price below its intrinsic value is undervalued. Few famous value investors are Warren Buffett, Peter Lynch, […]
National Pension System (NPS) is a ‘retirement savings scheme’ which anyone can use to build retirement corpus. Yes, NPS is a corpus builder. In itself, NPS cannot generate income after retirement. But one can use […]
What is annuity? It is an investment product for retired people. Only after retirement, a person can get the benefits of annuity. Annuity is purchased to generate guaranteed regular income. The frequency of income generated […]
Introduction: Why to bother about building an alternative income source? Because every extra penny added to the wallet will add weight. Moreover, the long term goal for “second income” is to become big enough so […]
Diversification: Including different types of non-related assets in portfolio is called investment diversification. It is a strategy to minimise the risk of loss in case of unpleasant price movements. Example: Suppose you bought stocks in […]
What it means when we see an oversubscribed IPO? In an IPO, when the demand for shares of a company overshoots its supply, it is referred as ‘oversubscription’. Let’s see an example: On 2nd-Dec’19, bids […]
Fist things first, ELSS is NOT a savings plan. It is an investment plan which is equity-heavy, with a lock-in period. Hence offers moderate risk. What is ELSS? It is an acronym for ‘Equity Linked […]
In India motor insurance is mandatory. It must be availed by law. Without an insurance, no vehicle can run on the roads. It is applicable for all type of vehicles: two wheelers, four wheelers and […]
When you hear the word stock trading, which is the first thought that comes to your mind? Shouting, commotion, crowd – right? There was an age when online trading was not practiced. Trading in stocks […]
You can check my mutual fund calculator here. It has been coded to help beginners to estimate ‘how much to invest’ for a financial goal. But why we need such a calculator? Why we cannot […]
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