This article delves into the ‘XIRR’ or extended internal rate of return and how it can be the best way to arrive at the returns on your portfolio that is unique to you, because two people can invest in the same fund but have very different returns.
You would have heard fund managers talk about following a top-down and bottom-up approach. What are they? How do you use them to filter your stocks and when to use what? This article will try to touch upon some aspects of these approaches to investing, with screeners (from our own Stock Screener tool) that will illustrate and help you understand how to approach these strategies.
Value investing is often mistaken for buying ‘cheap’ stocks. Therefore, you often simply look for a stock with a low PE ratio, or a low price to book value or with good dividend yield. These are easy ways to assess the relative value of a company. But value investing is not about buying companies that appear cheap based on these parameters. Value investing is a philosophy of buying a company at a price that is lower than its intrinsic value.
Rakesh Jhunjhunwala, fondly known as the Big Bull has become a name synonymous with the term multibaggers! By far, Rakesh Jhunjhunwala is the most successful investor in India with a portfolio worth nearly $3.5 billion (listed + unlisted equities).
What is Sensex, how is it computed and why is it so important? It is highly unlikely that one would go through a stock market related conversation and not hear the word ‘Sensex’. Frequently described as the pulse or a barometer of market sentiment and the economy, which way and how much the Sensex moves, can make or break their day for may.
When you compare the regular and direct expense ratios of mutual funds, how do you decide something is expensive or not? At PrimeInvestor, we have a new tool to help you make this comparison. But the tool alone can’t help you decide. This article will tell you how to use it effectively and what other factors should go into deciding your choice of plan.
As an investor, your approach to analysing and choosing banking and finance stocks needs to be distinct too. In the first part of this article, I had dwelt on the CAMEL approach to deep-diving into a bank’s business.
When you have a large sum to invest in, you have been told, it is best to systematically transfer it using what is called the Systematic Transfer plan (STP). This does exactly what an SIP does, except that the money to be invested, in this case, does not lie in your savings bank account. It lies in a fund. Also, unlike a SIP, where you typically invest from your monthly savings, in STP you simply deploy the lumpsum that you already hold. So far, so good. But for how long should you run this STP? Which funds do you go for? And should you always use an STP when you have a lumpsum?
Back on June 15th, the Central Board of Direct Taxes (CBDT) notified the Cost Inflation Index (CII) of the financial year FY 2021-22 as 317, against 301 for the previous year FY2020-21. This 5.32% spike marks a change from the lower revisions in earlier years.
In this article, we’ll explore where risk premiums come from in debt and equity. This is important because risk premiums are not fixed and change with time. So, if you base your return expectations wrong, you may wind up with a different corpus that you originally planned to.
There are certain characteristics which make evaluating banking and finance stocks different from others which produce goods and services. Money cannot be lent to someone unless there is an inflow by way of capital or debt. Since it is not practical to lend only from capital, borrowing (or leverage) is the sustaining food for this business. Naturally in using this leverage, there are good and bad apples.
A company’s Annual Report is a statutory document that contains material facts and information about the company. This makes it among the most reliable sources for information on a company. In this article, we will try to give examples of where in an annual report you can find information that is useful for your understanding of business and financials. This is an illustrative article and not an exhaustive one.