PEG ratio is a useful valuation metric for stock investors. Potential investors can use it to gauge if a stock is overvalued or undervalued. PEG is a ratio which establishes a correlation between company’s price valuation with its future growth prospects (see here). We are more conversant with the use of P/E ratio (Price to Earnings…
In India we have an investment option called “Post Office Monthly Income Scheme (MIS)”. Among other investment options, PO-MIS can also be considered suitable for investment by retired people. But PO-MIS is not limited for retired people alone. Anyone with age above 18 years can open a PO-MIS account. An account can be open even…
Generally speaking, good news about a company can take its stock price up, and bad news can take the price down. In real world, lots of news keeps floating about companies. Some news are good and some may be bad. Hence the struggle of price moving up or down is happening every second. But what…
Retirement planning is important. Why? Because this is what is going to give us financial independence after we’ve retired from our jobs/work. The planning will ensure the availability of the required funds when it’s time to retire. In India, the majority of service-class retired people depend on annuities to take care of their cash flow…
Summary: This article outlines six essential money management rules—budgeting, avoiding overspending, building an emergency fund, paying off debt, investing, and maintaining creditworthiness—to guide common individuals toward financial independence. Introduction “What is the need of money management; after all we earn money only to spend it one day”. I was trying to be ironic. But I’m…
Sharpe ratio is a measure of risk-adjusted returns generated by mutual funds. Looking at ‘returns’ through the filter of ‘risk’ is advisable for investors. What we need as an investor? High returns but at low risks, right.? Sharpe ratio is a tool which helps us to identify such mutual funds – which generates high returns…
Like long-term investing is a strategy to invest money, ‘rupee cost averaging’ is also an investment strategy to invest money by taking lesser risks. It enables people to eliminate the need to time the market. In rupee cost averaging the investor does not utilize all the funds to buy an asset at a single moment…
Use the below Stock Price Prediction Tool. It can help to forecast stock movements based on key financial indicators. Try answering a few questions related to P/E ratio, revenue trends, and institutional investor stakes, etc, and you can gain a rough insight into a stock’s potential performance. Do not worry, that calculator has an easy…
Long term investment is not an investment option in itself. It is a strategy which we can follow to practice investment. Let’s understand it using an analogy. One can improve ones physical health by jogging or by practicing yoga, right? Both these exercise has the same goal – of making the person fitter. Jogging and…
How to analyze bank stocks? Analysis of banking stocks is not like analyzing stocks of other businesses. Why? Because the business model of banks is different from other businesses. Hence, their financial statements are also prepared differently. A Screener for Top 20 Banks. In simple words, financial reporting of banks are different than other companies….
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…
To do fundamental analysis of companies, it is important to look inside financial statements. There are three types of financial statements: The balance sheet, profit & loss accounts, and cash flow statement. These three documents has loads of numbers inside them. What a beginner should look for inside these reports? We will know about it…
