The post aims to highlight to its readers the basics of the stock market. For people who want to build wealth by the equity route (mutual funds, stocks), the knowledge of the rules of investing is key. Beginners who are starting in the stock market will certainly benefit from the information. For experienced investors, it…
Why do the big companies have debt? Are there disadvantages to being a debt-free company? Debt is Good or Bad for Companies? We often see companies carry debt on their balance sheet. For example, here is data for companies in the BSE-500 index. Out of all stocks in this index, only 19% are debt-free. About…
The debt-Equity ratio (DE) is easy to calculate. But its interpretation is not as straightforward as we think. We generally assume that a DE ratio of 2 is acceptable. But for analysts, this number is too high. Let’s look at the DE ratio from an analyst’s perspective.
Recently I was reviewing a list of stocks from the BSE-500 index. I found some stocks showing negative shareholders’ equity. I wondered, what caused the negativity? The companies I’m talking about are these: None of the above companies are financially healthy. To cross verify, I checked their overall scores in my stock analysis worksheet. These…
When it comes to the use of jargon, probably the world of equity investment will be among its heavy users. Two commonly used words of this field are Alpha and Beta. The term beta is in use for a long time. But the trend of alpha is more recent. What are alpha and beta? Alpha…
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…
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…
If you are a beginner who wants to start a mutual fund investment, you have landed on the right page. In this mutual fund guide, we will try to cover all basics related to investment in general and about mutual funds. Who should read this article? This piece is for anyone who wants to start serious investing but does…
Direct equity investment can be very rewarding. Simultaneously this is also true that risk of loss in direct equity is high. People who can balance risk and return while dealing with direct equity are the winners. But how can one balance the risk and reward? The risk associated with direct equity comes from complexity of information Its not so…
