Portfolio management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.
We provides research work for Equity, stock tips, intraday tips, Multibagger & Commodity markets of India. Our services are chiefly designed for Investors and Traders to provide most appropriate solution.
Life Insurance is the safest and the most secure way to protect your family or dependents against financial contingencies that may arise post the unfortunate event of your untimely demise. Under a Life Insurance Contract in India, the insurer assures to pay a definite sum to the policyholder’s family on his demise during the policy term.
It is a tool to protect your savings against illness expenses. Health Insurance is an insurance policy that ensures that you get cashless treatment or expense reimbursement, in case you fall ill. A health insurance policy reimburses the insured for medical and surgical expenses arising from an illness or injury that leads to hospitalization.
A group health insurance plan is a health insurance plan that provides coverage to members of a group that tends to be employees of a company or members of an organization. Members of the group usually receive insurance at a reduced cost because the insurer's risk is spread across a group of policyholders.
It is a customised solution to investments in equity and debt offered by experienced and professional Fund Managers. However the ownership of stocks continues in one’s own Demat account. The benefit of this service is that you may choose to give discretionary powers to Portfolio Managers for, staggered deployment of money to average out entry levels and portfolio actions into research backed stock ideas into mid/large/small cap to enhance return potential.
BGS’s business entities address a heterogeneous swathe of population from the super rich, to the nouveau riche, the ubiquitous middle class, the lower classes (the SEC E3 according to the new Social Economic Classification), urban and the rural folks. All of whom either make a living through large business (corporate world), SMEs, professional services, traders, farmers, labour, blue and white collar jobs and the government.
Another key feature of BGS has been its ability to offer leading edge advice based on incisive ideas that are strongly rooted in high quality research on every conceivable aspect of investments be it equities, forex, commodities, bonds, fixed returns, debt instruments or any other investment grade asset class.
The customer has always been at the centre of every BGS initiative.
Equity linked savings scheme (ELSS) is a type of equity mutual funds on which investments up to Rs1.5 lakh per financial year are tax deductible under section 80C of Income Tax Act, 1961. Moreover, apart from the tax benefits the ELSS investments also offer other benefits as discussed below.
Wealth creation with tax-saving – Historically, it has been seen that ELSS schemes have given significantly higher returns than other tax saving schemes like PPF, 5 years FD, EPF etc.
Shortest Lock-in period – ELSS has lock-in period of 3 years, which is the shortest lock-in period among all tax-saving instruments.
ELSS is a best way to save tax and create wealth in long term. Below are the recommended five ELSS fund.
Equity mutual funds are one of the best ways to create wealth in long term in equity market since historically it has been seen that equity based investments have given inflation beating returns over long-term despite short-term volatilities. Besides, equity mutual fund is a right way for investors to invest in equity market who do not understand market. The Indian mutual fund industry is well regulated, transparent and mature.
Debt funds invest in fixed income securities like Government bond, Corporate bond and money market securities with different maturities. Debt funds are categorized as Gilt Funds, Income funds, Liquid funds, MIP, etc.
Debt funds are appropriate for investors who are risk aversive and are seeking regular income. Some of the advantages are discussed below:
To consistently make profits in intraday trading over a longer period of time, you need to start off with simple things like documentation, setting limits and managing risks. Here are the 10 steps to focus on.
10 steps to intraday trading
10 rules for selecting stocks for intraday trading
The big challenge in intraday trading is selecting the right stock universe to trade. A good list is nearly 25% of the job done.
Between 2015 and 2018, IPOs became a principal source of raising funds and also an interesting avenue for investors to park their funds. IPOs like Alkem, Avenue Supermarts and Shankara Building Products, among others, did extremely well post listing. However, the IPO market also had its share of disappointments. How to separate the good IPOs from the mediocre IPOs, remains the million dollar question. Here are five tips to help you invest in IPO offerings.
Don’t invest in IPOs without checking the background of the promoters
This may look intangible but pedigree of promoters matters a lot. If the promoters have a past record of destroying stock market wealth or of corporate governance issues, such issues are best avoided. Irrespective of the attractiveness of the business, a bad management can do a lot of damage. Look at Satyam versus Infosys in the same industry. Quality of promoters has a direct bearing on the valuations of a company and the performance of an IPO. More often than not, it is the promoters who make the difference between a bad company and a good company.
Valuations matter because you cannot pay too much for IPO hype
When we talk of valuations, it is not just about P/E ratio but more about P/E ratios with reference to the growth of the company. For example, Avenue Supermarts was richly valued even at the time of the IPO. Despite that, the company gave more than 200% returns post listing. Be cautious when promoters and anchor investors try to use the IPO to exit their holdings in the company at rich valuations. You don’t have to play ball in such cases.
Utilization of funds tells you a lot about the quality of the IPO
In the IPO prospectus, the utilization of funds is clearly laid out. It is always good to focus on IPOs that utilize a bigger share of the IPO resources in enhancing their core business. For example, if a manufacturing company is using the IPO funds to expand its scale or to make strategic diversifications then it is a good idea. This will enhance the long term prospects of the company. You must be doubly cautious about investing in IPOs where the bulk of the IPO proceeds are going into meeting working capital needs, investing in real estate properties, investing in group companies etc. Some companies also use IPO proceeds to repay high cost loans. While that is acceptable, investors must remember that equity has a higher cost compared to debt.
Be wary of IPOs where promoter is substantially diluting stake
Quite often you come across IPOs that also have an OFS (offer for sale) component. Here the promoter or the anchor investor looks to monetize part of their stake as part of the IPO. This is true for companies promoted by large institutions as well as entrepreneurs. This is perfectly understandable. However, you must be wary of companies where promoters have been trying to consistently dilute their stake in the company. This is not a good sign at all. Promoter stake in the company post IPO is a signal of their continued commitment to the company and its business. Remember that promoters can also pledge shares and that can also result in forced reduction of promoter holdings. All these are red flags to look out. You invest in the promoters as much as in the business so you need promoters committed to the business in the long term.
Be wary of too much debt or too much equity
In the last 11 years since the financial crisis, the worst performing IPOs are the ones that got into too much debt. Companies with high debt levels will always have a solvency problem and that puts a limit to the wealth that they can create. This is more so in industries that are cyclical in nature as in the case of metals and infrastructure. There is financial risk in debt and that is where most mid-cap and even large cap companies falter. Just as too much debt is bad, too much equity also makes the company languid.
The next time you invest in an IPO, watch out for these five things. It is a good starting point!
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