Saturday, December 16, 2017

Trick to pay your loans quickly

By increasing your payment towards EMI by just 5%, which is roughly the consumer inflation in India for past few years, the loan can be repaid in half the original time. A very good strategy to get rid of debt quickly.

Monday, December 4, 2017


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.

Saturday, November 25, 2017

Logic Kya Hai

I was horrified to see a Dominos guy escaping a near death experience recently at a busy intersection in Kolkata when he tried to pass between two public buses racing each other for passengers. There is no doubt this is a common phenomenon across all major cities where number of bikers face life risks on busy roads specially the delivery guys who are always pushed to deliver food or products asap. No doubt pizza tastes better when its hot but at what cost? #LogicKyaHai. Pushing the delivery guys to deliver fast risking their lives seems ridiculous and as buyers we all have to play a role in changing this system.

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.  

The Potential Multibagger  - 23rd Nov 2010

Ting Ting Tding  - 27th May 2011

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

Find your trading edge

The most essential ingredient in trading is an edge.  All successful traders have it and in no way one can succeed in stock markets without this.

Friday, October 20, 2017

Friday, October 13, 2017

Red Flags in Reliance Industries Q2 FY 2018 Result

While analysts are cheering trying to justify why Reliance Industries stock price should get re-rated, I found the balance sheet which was with the result release to be quite scary. I have encircled the items which seems to be looking not good for the shareholders:

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:

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.

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

Be the climbing Wolf

Get charged up with this very energetic video. I found it really motivational.

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

UPI Payment System
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. 

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...