Saturday, December 16, 2017
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.
Friday, December 1, 2017
Saturday, November 25, 2017
Friday, November 24, 2017
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
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
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
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
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
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
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
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
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
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
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
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
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.
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