Investing

 We all take inspiration from the past to shape our future. As we celebrate the 74th year of our country’s Independence, it gives us an opportunity to ponder over becoming financially free. But, what is financial freedom? Ask a college going student about financial freedom and chances are high that they would respond to that as earning on their own. But, someone with a home loan repayment for the next 15 years may tell you that when they are done with the debt, they are financially free. Financial freedom means different things to different people, but broadly it is to reach a stage in life when one finds self-created income streams to take care of their financial needs. This is achievable, but it requires a lot of hard work and planning to achieve your desired financial freedom. Working towards financial independence, like most financial goals starts when you set a date, when you wish to become financially free. Time was when people had a defined working career, when they retired,...

 Taxation for Portfolio Management Services (PMS) You are taxed as if you made the investments directly, on your own. Long-term capital gains tax (LTCG) of 10% applies to profits from listed stocks held for more than 12 months. Short-term capital gains tax (STCG) of 15% applies to profits from listed stocks held for less than 12 months. You must include these gains/losses in your tax return. Taxation for Mutual Funds (MF) You are taxed on the difference between the selling price and acquisition cost of the MF units, depending on the type of MF you invested in. LTCG tax of 10% applies to profits from MF units held for more than 12 months. STCG tax of 15% applies to profits from MF units held for less than 12 months. You pay tax when you sell your MF units, not when the MF itself makes a profit. Key difference: In PMS, you pay tax on profits from individual stocks. Every time your portfolio manager sells a stock at a price higher than the purchase price, a tax liability arises. In MF...

Buy The Dips Strategy "Buy the dips" means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the "dip" is only a short-term blip and the asset, with time, is likely to bounce back and increase in value. KEY TAKEAWAYS Buying the dips refers to going long an asset or security after its price has experienced a short-term decline, in repeated fashion. Buying the dips can be profitable in long-term uptrends. Dip buying can lower one's average cost of owning a position, but the risk and reward of dip-buying should be constantly evaluated. Understanding Buy the Dips. " # BuyTheDips " is a common phrase investors and traders hear after an asset has declined in price in the short-term. After an asset's price drops from a higher level, some traders and investors view this as an advantageous time to buy or add to an existing position. The concept of buying dips is based on the theory ...

 Larsen & Toubro Ltd.  Construction • Infrastructure Market Capitalisation ₹4,06,609 Cr  12 Month Earnings ₹7,849 Cr Larsen & Toubro Ltd. Stock Perfoming t railing YTD 41.83%, 1yr 57.63%, 3 Years 46.74 Valuation  Stock: P/E 36.11, P/B 4.96,  Earnings Yield (%) 6.85,  PEG 4.42  Growth & Efficiency: TTM EBIT Growth (%) 2.79, TTM EPS YoY change (%) 12.16, Returns on Equity (%) 15.71 Financials  Revenue ₹1,95,370 Cr,  YoY: 6.56% Net Profit/Loss ₹13,448  Cr, YoY: 6.52% Net Worth ₹89,326 Cr,  Debt ₹1,18,513 Cr Free Cash Flow  ₹18,633 Cr, YoY: 16.07% CFO ₹22,777 Cr,  YoY: 18.86% Shareholding Pattern DIIs  37.38%,  FIIs  25.72%  Others  36.9% Liquidity High Key Facts Market cap ₹ 4,06,608.83 Cr Revenue (TTM) ₹ 1,10,500.98 Cr Earnings (TTM) ₹ 7,848.97 Cr Cash ₹ 24,793.93 Cr Total Debt ₹ 18,151.09 Cr 52 Week range week-range ₹ 1,891.55 - 3,114.95 Face value face-value ₹ 2.00 10 Years Aggregate: C...

 Reasons to start investing today If you didn’t start investing when you earned your first salary, the best time to start could be now. If you’re still unsure about the benefits of investment planning, here are four factors that might help change your mind. The earlier you start, the better the gains. Have you ever wished you’d picked up a particular hobby or language when you were younger and could master it easier? It’s the same with investment. If you don’t start your financial planning today, you’ll probably come to regret it in your 30s. Start early and give your investments time to grow - your future self will thank you. Make the most of compounding. By beginning your investment planning now, you can maximise the power of compounding - i.e., letting your money make more money for you! Say you invest Rs,10,000 at an interest rate of 10%. At the end of one year, you’d have earned about Rs. 1,000 on it and your total investment amount would then be worth Rs. 11,000. Even if you ...

ICICI Lombard General Insurance Company Ltd.  Insurance • General Insurance Market Capitalisation ₹68,871 Cr  Price to Earnings Ratio 39.20 12 Month Earnings ₹1,757 Cr ICICI Lombard General Insurance Company Ltd. Share Price NSE ₹1,399.05As on 23-Oct-2023 52 Week range week-range ₹1,049.05 - 1,423.30 Face value face-value ₹10.00 Stock Performance Trailing 1 Year 21.47% Valuation P/E 39.2, P/B 6.2, Earnings Yield% 3.42, PEG 3.41 Growth & Efficiency TTM EBIT Growth (%)-9.14, TTM EPS YoY change (%)11.89, Returns on Equity (%)16.34  Financials Revenue ₹ 15,711 Cr, Net Profit/Loss ₹ 1,757 Cr YoY: 1.62% Net Worth ₹ 11,113 Cr, Debt ₹ 35 Cr* YoY: -8, 6.27% Free Cash Flow ₹ 2,169 Cr YoY: 195.84% CFO ₹ 2,290 Cr YoY: 183.05% Shareholding Pattern Indian Promoter 48%, DIIs 18.52%, FIIs 22.37%, Others 11.11%. Liquidity High. 10 Years Aggregate: CFO: ₹16,308.01 Cr,  EBITDA: ₹-123.28 Cr, Net Profit: ₹9,834.21 Cr #ICICILombardGeneralInsuranceCompanyLimited provides various genera...

 Tata Young Citizens' Fund  (An open-ended fund for investment for children having a lock-in for at least 5 years or till the child attains age of majority, whichever is earlier) Current NAV (on 20 Oct 2023) ₹ 53.8469 Returns 3Years 21.72%  Return Since Launch12.80% As a responsible Parent, Guardian or wellwisher, you are always willing to take steps today so that your little ones get to see a better tomorrow. Be it basic education, the most coveted foreign degree, a dream marriage, a diligent and loving parent desires to provide enough financial security for each milestone in a child's life. But have you thought how you would be able to fulfill these desires, given the huge increases in costs of education or marriage that are likely to occur with every passing year? A little bit of careful planning, regular saving and consistent investing today is what is required so that you can take care of these future needs without worrying too much. If you are looking for an investm...

Tata Retirement Savings Fund F U N D   O V E R V I E W Tata Retirement Savings Fund is a carefully structured suite of plans designed to meet the investment needs of investors planning for retirement. It works as a retirement solution by offering choice of asset allocation to investors based on their life stage and risk preference. K e y   A t t r i b u t e s Choice of asset allocation based on life stage and risk preference. Unique Auto-Switch & Auto-SWP facility takes away the hassles of adjusting the equity - debt proportion with increasing age. Load Free Switch facility 3 plans to choose – Progressive, Moderate & Conservative W h o   S h o u l d   I n v e s t   ? Investors keen to save for retirement. Follow a life cycle based approach to retirement savings. Salaried employees looking for regular savings avenue for retirement. Self-employed who usually don't have post-retirement benefits accruing to them. Investor...

  Start your journey WOMEN'S INVESTING PLAN Because, Why Should Men Have All The Funds? For any mutual fund related queries, give us a call on 9845211825 Earning but not investing yet? Your financial independence may be still incomplete! To be truly financially independent, you may work on your individual as well family goals, analyse your income and expenses, learn about different investment avenues, and then embark on your investment journey accordingly. It's not as tough as it may seem! Aim to start as early as you can, so that you may reap greater benefits. How Are Women's Financial Needs Different from Men? To ensure financial independence, it's important for women to invest their hard-earned money wisely. This is especially true in times of high inflation & unexpected economic downturns. World of Personal Finance for Women. When starting a financially independent life, here's a basic financial checklist that one may refer to: Savings Account. To hold liqui...

 There are 2 types of NCD: Secured NCDs: Secured NCD are backed by company’s assets. In the event of windup of the company, the assets will be sold off against which the NCD was secured and repay the investor. Unsecured NCDs: Unsecured NCDs are not backed by a company’s assets and are based on creditworthiness of the issuer. Non-Convertible Debentures (NCDs) Mix of risk and return profile Non-convertible debentures are used by companies to raise long-term funds through public issues. Via NCDs, a company agrees to pay a fixed rate of interest on your investment for a specified period. ALL YOU NEED TO KNOW Why invest in Non-Convertible Debentures? Transparent and simple plans for our products to provide safe investing options. Fixed Income NCDs provide a fixed rate of interest over a specified period, ensuring a steady income stream for investors. Liquidity Some NCDs are listed on stock exchanges and can be bought or sold before maturity, providing an exit option if required. Short-T...

  Quant funds are a type of mutual fund that use data-based models for selecting stocks in the portfolio. Here, stocks are selected on the basis of pre-defined rules. A data-driven approach is followed in this method of investing, where human intervention is limited to designing the approach and the model. Quant funds are at a nascent stage in India, but offer a wide scope for diversification of investing strategies in one’s portfolio. A fundamental data-based approach is used by setting parameters to arrive at a portfolio for informed decision-making. The criteria may include a combination of parameters across investing styles such as Quality, Growth and Value, which creates a good balance. For example, value parameters will score stocks based on factors such as, Price to Earning (P/E), Price to Book Value (P/B) and Dividend yield (D/P) parameters. Similarly, quality parameters include Return on Equity (ROE) and Debt-to-Equity (D/E) ratio. Growth parameters may include Earning Per...

  Many individuals strive to achieve financial success but very less hold the potential to stay committed to their investments over the long run. That's because in order to achieve wealth over the long term one needs to invest at an early stage in their life. The early you start investing the better it is because that way you have more years in hand to build wealth. Individuals have financial goals which they are really keen or willing to achieve, but most of them do not have enough patience to achieve these goals. Lack of saving and investing is one of the primary reasons why investors are unable to achieve their lives financial goals. In order to create wealth, one needs to save more than spend. Indian investors have plenty of investment schemes to choose from. There are conservative as well as aggressive investment options available and investors should invest depending on their risk appetite. A risk appetite can determine whether an investor can invest in aggressive schemes or ...

  News about global warming hits the news websites almost every day. There are stories about glaciers melting, deforestation, etc. which usually leaves a lot of individuals disheartened. Don’t you sometimes wish that you could do to contribute towards protecting our natural environment in some or the other way? Everyone wishes to do their bit to create a positive impact on our environment but might not know how or where to start. If you too feel like showing some commitment towards protecting your environment, now there’s a unique way to do it. Environmental, social and governance are the three pillars of an ESG analysis. These three parameters might help an individual invest sustainably. ESG investing is a parameter-based approach to analyze and evaluate companies based on their obligations towards positive environmental, social and governance (ESG) business practices

 Factor investing is a strategy that chooses securities on attributes that are associated with higher returns. There are two main types of factors that have driven returns of stocks, bonds, and other factors: macroeconomic factors and style factors. The former captures broad risks across asset classes while the latter aims to explain returns and risks within asset classes. Some common macroeconomic factors include: the rate of inflation; GDP growth; and the unemployment rate. Microeconomic factors include: a company's credit; its share liquidity; and stock price volatility. Style factors encompass growth versus value stocks; market capitalization; and industry sector. Understanding Factor Investing Factor investing, from a theoretical standpoint, is designed to enhance diversification, generate above-market returns and manage risk. Portfolio diversification has long been a popular safety tactic, but the gains of diversification are lost if the chosen securities move in lockstep wit...

  An Index Fund is an open-ended mutual fund that endeavours to replicate the performance of it’s underlying index (subject to expense ratio and tracking error). In other words, it’s portfolio tends to mirror it’s underlying index constituents by holding the securities in the similar proportion as their weightage in that index. ETFs are also open-ended funds and can also be traded like stocks on the exchange(s). For example, there may be an ETF on Nifty or S&P BSE Sensex, whose portfolio will be exactly the same as the index. It will hold all the securities in the same weightage as in the index. As opposed to a conventional mutual fund, ETF is listed and traded like shares on a stock exchange through a trading account. Just like a stock, an ETF has a ticker symbol and follows the same settlement cycle. It has an indicative real-time NAV (market price) as compared to only a single end-of-day NAV for traditional mutual fund schemes. The indicative NAV of an ETF changes in tandem ...

  In the recent past, index funds have become one of the most sought-after mutual funds. Investing in exchange-traded funds and index funds receives a lot of positive press, and for a good reason. At their best, index funds provide a low-cost way for investors to track popular stock and bond market indexes.  An index fund is a mutual fund that mimics the portfolio of an index. These mutual funds are also known as index-tied or index-tracked funds. These funds are managed passively because the primary goal of index funds is to track and replicate the performance of a popular stock market index such as the S&P BSE Sensex and NSE Nifty 50.  Since index funds are not actively managed by investors, they have low expenses. They don't seek to outperform the market but rather follow an index. They aid investors in managing or balancing the risks in their investment portfolio. Index funds in India are ideal for investors who want consistent returns. These funds do not necessit...

  Mutual fund schemes are ideal for long term wealth creation or for achieving long term financial goals like building a retirement corpus, securing your child’s future, planning a post retirement world tour or buying the dream home you always wanted. SIP has become the primary mode of investment for most investors these days. That’s because it is an easy and convenient way to invest in mutual funds without having to personally visit the Asset Management Company or fund house to make an investment in mutual funds. Systematic Investment Plan, short for SIP, is a hassle free way to invest in market linked schemes like mutual funds especially if you do not have a large capital at your disposal to start investing. Also, if you are new to investing and wish to inculcate the discipline of regular investing, SIP might be the way to go. Irrespective of how much amount you wish to invest in mutual funds, SIP can not only help you invest that amount to achieve your financial goals, but also ...

 Traditionally, people used to invest in gold, real estate, fixed deposits, etc to grow their wealth. However, with the advent of mutual funds, people shifted to invest their hard-earned money in the financial markets from the traditional mode of investments.  A mutual fund is managed by a company called AMC (Asset Management Company) which invests in various financial instruments such as equity, bonds, gold, etc. They aim for providing decent returns to their investors while keeping the risk level at a minimum. However, the AMC should be registered with SEBI (Securities and Exchange Board of India). SEBI is the regulatory body of the stock market and acts as a watchdog in the stock market. They make sure that there is no conduct of unfair trade practices in the market.  Mutual fund investment is the most popular investment among Indian investors. They collect money from various investors to invest in different financial securities such as stocks, bonds, cash, gold etc. M...

  When selecting mutual funds for investment, it's essential to go beyond just looking at historical returns and consider the expertise and approach of the fund manager. Here's a breakdown of this approach: Fund Manager's Expertise: 👨‍💼 • A skilled and experienced fund manager can make a significant impact on a fund's performance. 📈 • Look into the fund manager's track record, years of experience, and their history of managing similar types of funds. 🧠 Investment Thesis: 📝 • Every mutual fund has an underlying investment philosophy or thesis that guides the fund manager's decisions. 💡 • Parag Parikh Mutual Fund follows value investing 💵 • Quant Mutual Fund follows momentum investing 🏃 Long-Term Approach: 🗓️ • It's important to align with the fund's investment horizon. For instance, if the thesis involves patient value investing, you need to be comfortable with a longer holding period. ⏳ • Avoid making decisions based solely on short-term perform...

If the goal is to stay invested for a long period of time, I would suggest allocating major part of the corpus in equity-based investments. If your investment horizon is a shorter duration, you may want to look at fixed income plans. Conservative or first-time investors should opt for equity savings funds, dynamic funds, balanced funds or index-based investing, as these funds give relatively more efficient returns on the basis of risk-return. Equity as an asset class is volatile; it will have ups and downs. We have seen in the past that the market may fall from the highs, but it is very difficult to determine beforehand whether the fall is a retracement, i.e. minor pullback from high level or a deep correction. Furthermore, historical data shows that whether the pullback is short term or bearish, the market has always recovered and hit new highs. Therefore, it is in the interest of long-term investors to remain invested. Focus should be on asset allocation. In high market, the asset a...

  How the fund manager is creating alpha, by taking active bets in their stock selection and giving proper weightage. That's why in any given year and any category the top & bottom will have at least 10% difference. Most difficult thing in life is to take decision, because when we take decision, the outcome can be either favorable or not. So many feels better to be in the same decision than taking anything new. This is pretty much applicable to Mutual Fund Investing too. Investors who are on their own by doing DIRECT will either keep the money in the same fund for a longer period of time or they will completely move out because of the market fluctuation or noise. Both will rally pulling their long term return still the expense ratio only comes to their mind! Since MFD is a full-time profession, we tend to interact with the fund managers and keep looking at data we are one shade better than the normal investors. We got the courage to take action relatively easy, because we have ...