REITs are a relatively new investment product for India. It was launched with Embassy REIT in Mar’2019. But for more mature markets like the USA and UK, REITs are in existence since the 1960s. In case you want to know more about what is REIT and its basics, I’ll suggest you kindly read this article…
Knowledge about how to build a stock portfolio is perhaps as essential as the stock analysis itself. Though the former looks more daunting to me. There are processes and financial models (like DCF) in place, using which one can analyze a business. But when it comes to stock portfolio building, there is no established process. A portfolio that might look apt…
Capture ratio is one of the most understandable financial-ratio in which we (small investors) can gauge a mutual fund’s return from a perspective. I’ll tell you how. We often pick mutual funds for investment based on their past returns. It is like evaluating a mutual fund based on only one parameter. Which is not enough, right? But…
Let’s start with the most basic question. Why compare two mutual funds? It’s done to know which fund is better for investing. But such a comparative method is effective? If one knows the vital parameters for comparison, it can be more effective. In fact, unlike stock analysis, a detailed fundamental analysis of mutual funds is not possible….
There is a need for people to know about direct plan offered by mutual fund companies. What is the need? In good old days, mutual fund schemes could be sold to investors only through agents and distributors. Reason being, lack of penetration of internet into the Indian households, hence negligible online transactions. But today we…
Sharpe Ratio helps you see if a fund is giving good returns for the risk it takes. A higher ratio usually means the fund is using risk more efficiently than others in the same category. If your fund has a lower Sharpe Ratio than similar funds for long, it may be time to review or exit.
How equity investment during COVID-19 Pandemic can be planned? It is easy for expert investors. Why? Because they have a right mindset to handle money during such times. But for we common men, equity investing may not be as smooth. Whenever there is global crisis (like 2008-09 debt crisis, Brexit, Dot-Com bubble etc), a class…
Warren Buffett’s rules of investing are not just rules, they are principles based on which good businesses operate. So it would not be wrong to say that Warren Buffett is not just a great investor, he also has extraordinary business acumen. So let’s try to first dig into the roots of Warren Buffett and his investment…
Systematic Transfer Plan (STP) is a useful tool like Systematic Investment Plan (SIP). SIP has become a synonym for mutual fund investing. People prefer buying mutual fund units through SIP route. Hence these days, it is not necessary to explain the meaning and purpose of SIP to people. But the concept of Systematic Transfer Plan (STP)…
Value investors are always prepared to invest in a bear market. Why? Because it is in the bear market that they make maximum profits. Generally, there is a fear of bear market because majority lose money during this time. But value investors considers falling market as an opportunity to make big money. People like Warren Buffett…
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 Savings Scheme’. ELSS is basically a type of mutual fund which closely resembles a multi-cap fund. But there is a…
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. Lumpsum Investment (Rs.) Monthly Contributions (Rs.) Rate of Return (% p.a.) Investment Horizon (Years) Final Lumpsum Amount (Rs.Lakhs) Fianl SIP Amount (Rs.Lakhs) Total Amount (Rs.Lakhs) But why we need such…
