Rachana Ranade. Blog

Introduction
Axis Bluechip fund is the flagship fund of the AMC with an Asset Under Management (AUM) of more than Rs. 33,000 Cr. as of January 2023, this is a huge AUM. The highest AUM was in August 2022 of Rs. 36,979.68 Cr. The AUM has grown multifold between 2017 to 2020 because of its fantastic returns during these years. To give you an idea about the growth of the fund, you must know that the AUM of the fund in Jan 2017 was Rs. 1,942 Cr only. Wow! If this is the growth in AUM, let us check how the returns were.

Returns
1) Calendar Returns

Source: Value Research
In the above image, you can see that the fund has given amazing returns in 2014 and from 2017 to 2020. In 2021, the fund fell short to perform with the benchmark and the category. 2022 was not good as the benchmark and category both gave positive returns while the fund gave negative returns. This is where it started hurting the investors.
2) Trailing Returns

Source: Value Research
In the short term, the fund is bleeding. But, by now we all are aware that you should invest in large-cap funds with an investment horizon of more than 5 years. So, if we look at long-term returns, it is 12.14%, 15.30%, and 14.64% for 5 years, 7 years, and 10 years respectively which is a fair enough performance.

Risk Return Parameters
Similarly, if we look at the risk-returns parameters –

Source: Value Research
Mean returns should be higher the better, you can see that the fund is lagging in the category where it is ranked second from below. A silver lining can be seen in the form of standard deviation and beta where the fund manager has managed to keep a check on volatility. But the problem lies in Sharpe ratio and Alpha. The Sharpe ratio is low, and Alpha is negative. Those who have taken the course on the Magic of Mutual funds know in detail what these ratios mean, and how important they are in analyzing a fund. If you have still not enrolled in the course, you can click on the image below –

Portfolio Concentration
Now, let us dig deeper and try to understand what caused the problem. For that, we will have to compare the portfolio concentration of Axis bluechip fund with one of its peers. I think this peer can be the SBI Bluechip fund considering that it is the best-performing fund in the peers having an AUM of more than Rs. 30,000 Cr.
1) Axis Bluechip Fund -

2) SBI Bluechip Fund –

Source: Value Research
If we look at the above data, we can see that Axis Bluechip fund has 87% in equity whereas SBI Bluechip has a 93% allocation to equity. So, SBI is in a better position to generate additional returns. The allocation to the top 5 stocks is more in Axis Bluechip funds, this creates pressure on the fund manager that these 5 stocks will decide the fate of the fund. So, now it becomes necessary to see which are these 5 stocks.

Top stocks in the Portfolio
1) Axis Mutual Fund –

2) SBI Bluechip Fund –

Source: AMC website
I think there is no need for any explanation here. In the portfolio of Axis Bluechip fund, 3 out of the top 5 stocks have generated a negative return, while the score for SBI Bluechip fund is only 1 out of the top 5. Another stock that attracts attention in SBI bluechip fund which is missing from the Axis Bluechip fund is ITC Ltd. I hope the reason for underperformance is slowly getting clear now.

Fund Manager History
Usually, when there is a change in fund management, we have seen that the new fund manager takes his time to implement the strategies, which causes the fund to underperform for a brief period of time. Let us see if it is the case with Axis Bluechip Fund –

Source: Morningstar
In this chart, you can see that Shreyas Devalkar has been with the fund house since 2017. It is he who had delivered the golden returns of this fund. So, we cannot say that the underperformance is because of the change in fund management.

Will I redeem my investments in this fund?
We all know that the stock market moves in cycles and there are ups and downs. Axis blue chip fund has witnessed a positive cycle from 2017 to 2020 now it is time for the negative cycle. You cannot expect a fund manager to keep generating amazing performances every single year. It is not like the fund manager is selecting stocks that are not good. His stock picks are simply going through a rough phase. Maybe now he will relate to our merchandise which says “I Buy… Asa Kasa Kay?” :D. Jokes apart I think it is only a matter of time until the fund reverses to its glory days. All we need to do is be patient.
This was all and only about the Axis Bluechip fund, but there is more to this analysis. The lead trader/dealer of Axis Mutual Fund who was also one of the fund managers was recently barred by SEBI in a front-running case linked to the fund house. To know more about the front-running scandal and if this scandal changes my view about investment in this fund don’t forget to watch the video on my YouTube channel. Until then!

Comments (0) details

Should I sell Axis Bluechip Fund?

What is Experience Timeline?

Experience Timeline is a visual presentation of a sequence of events, especially historical events which eventually indicates the experience of the entity.

Why Experience Timeline?

Since it indicates the experience of the entity based on which one understands how the company is growing operationally and strategically. Understanding of the entity’s operational and strategic movements is one of the important factors of consideration while performing fundamental analysis of the entity.

About Infosys Limited:

Infosys is a global leader in next-generation digital services and consulting. It enables clients in 46 countries to navigate their digital transformation.

With nearly four decades of experience in managing the systems and workings of global enterprises, it expertly steers their clients through their digital journey. They do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. It also empowers the business with agile digital at scale to deliver unprecedented levels of performance and customer delight. Their always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from their innovation ecosystem.

Experience Timeline of Infosys:

Infosys was established in 1981 by Mr. Narayana Murthy and 6 engineers in Pune. It was listed on NSE and NASDAQ in 1995 and 1999 respectively. The major landmark of Revenue of US$ 1 Bn. achieved by the entity in 2004 – within 24 years of establishment. Along with such landmarks, the entity acquired many global entities in this industry to expand the entity at a global level.

Conclusion:

Understanding of operational and strategic experience is one of the important points in fundamental analysis of the entity along with other operational and financial review points.

Comments (0) details

Experience Timeline of Infosys Limited

Since the COVID-19 pandemic and global meltdown in stock markets, the whole Indian banking sector has underperformed due to fear of NPA. Even, RBI mandated banks to make COVID-19 related provisions in their books and instructed them to not declare any dividend till the end of September month. Before investing in banks, investors need to watch out for some of the key ratios, we have taken the top 5 banks as our examples based on market capitalization. Below are some of the important parameters to watch out for:

1. On the basis of Liquidity of Banks - Capital Adequacy Ratio:

Capital Adequacy Ratio (CAR) is simply the core capital of the bank. CAR is measured based on Tier-1 capital and Tier 2 capital. Tier 1 capital is such a capital where a bank can absorb the losses without disturbing normal business operations. Thus, it provides a liquidity cushion to the bank and it also protects the depositors. Tier 2 capital is such a capital where the bank can absorb the losses in the event of bankruptcy of a bank, it provides lesser protection to the depositors. Banks are required to maintain a minimum CAR of 10.5% including a Capital Conservation Buffer of 2.5% as per Basel III norms.

2. On the basis of Asset Quality:

Bank’s asset quality matter’s the most, higher the NPA ratio, the worst the case, NPA’s ultimately wipe out the capital of the bank, thus impacting the CAR ratio.NPA means the default of interest and the principal amount by the borrower. As per RBI, banks classify a borrower’s account as NPA when the interest due on the loan is not paid within 90 days. Investors need to analyze both Gross and Net NPA ratios Gross Non-Performing Assets as a % of Gross Advances (GNPA): GNPA is the sum of all the types of unpaid loans by the borrowers.
Net Non-Performing Assets as a % of Net Advances (NNPA): NNPA is the sum of unpaid loans less the provision made for these bad loans.

3. On the basis of Profitability:

One of the key profitability ratios to watch out for is Net interest Margin- NIM. Since the bank’s business model is to raise funds from depositors and lend it to individuals and businesses, it receives interest on an amount lent and pays interest on the funds raised via various routes. Thus, the difference between interest earned and interest expended over its average earning assets is called net interest earned, it is popularly expressed in % form and is popularly known as NIM.

Comments (0) details

Parameters to analyze Banks

In living life, everything that the person is worried about losing tries to ensure that by something. Insurance companies are the one who provides such risk management to individuals, businesses, and institutional clients. This is done through various types of insurance products that customers look for i.e. life insurance, health or medical insurance, car insurance, etc. The basic principle of all such products remains the same that the insurer guarantees payment or reimbursement in the event of losses for the insured. From an investor’s perspective, investing in certain kinds of insurance companies like life insurance may appear risky as these businesses consist of long-term products and services, and also require high initial acquisition cost.

Therefore, while analyzing such companies’ certain business growth parameters need to be considered over the years and margins. We have covered in this blog such 3 parameters for the top 3 life insurance companies in India to take you through their short analysis to understand and compare these companies with each other. We have selected these top 3 companies based on the market capitalization as of 26th November 2020.

Embeded Value [EV]

This is the measure of the value of the life insurance company. This measure indicates the expected profitability from the current underwritten policies and current net worth. The embedded value of the company is calculated as the sum of adjusted net worth and the discounted value of profits from in-force policies.
Below is the comparison of the embedded value of the top 3 insurance companies:

New Business Premiums [NBP]

As the name indicates, this is the value of premium acquired by the entity from new policies for a particular year. So, the premium earned from the new contracts in a given financial year is referred to as the new business premium for an insurance company. Very natural to understand, if the company is able to grow at a higher rate with NBP, the business perspectives seem to be on the high good side.

Below is the comparison of NBP for the top 3 life insurance companies:

New Business Margin [NBM]
This is a measure of profit margin used by the insurance companies for the new business received during a particular financial year. NBM is the ratio of the value of the new business to the present value of premium income. It is calculated by dividing the profit on the new business by the present value of the new business or Embedded value.
Conclusion:

Based on the above analysis, one can compare these parameters for the top 3 life insurance companies and understand the fundamental analysis of such companies. Rather, these are not the only parameters to be considered for investment decision making, so consideration of other factors along with these is important.

Comments (0) details

Parameters to analyze Top 3 Insurance Companies

Introduction:

If you check the financial statements of UTI Asset Management Company of Q1 of FY 2021 compared to Q1 of FY 2020, below is the position of the change in revenue.

In the above table, you may notice the revenue has increased by 11.63% for Q1 YoY. Total Revenue from Operations includes gains/ losses from fair value changes. Now, let’s understand the meaning of “Fair Value”

Meaning of Fair Value: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as on date. In simple words, it can be substituted with the word, “current market price.” Fair Values are calculated according to IND AS 113.

Now you might be wondering why are we discussing “Fair Value?”

Due to COVID-19, the equity and mutual fund markets were very volatile in Q1 of 2021 which resulted in a significant change in the fair values of such investment instruments. You might be aware of the “V shape recovery” which the market witnessed. Due to this, it’s probable that the company might have gained significantly on such investments. But since these gains are temporary but not permanent in nature, one should not consider these while analyzing the revenue from operations of the company for fundamental analysis and growth perspective along with the impact of the same on other parameters like PBT, PAT, etc.

Let’s consider the following example. You have equity shares of Company A which you have purchased at Rs. 1000. The LTP as of 31st March is Rs. 1,800. As per Ind AS, you have to value it at the market value (LTP) in your balance sheet. So, for this, you will have to increase the asset value by Rs. 800. The 2nd impact of gain of this transaction will reflect in the profit or loss account. In IND AS terms, it’s not necessary that every such gain will reflect in profit or loss account only. Some assets are recorded through Other Comprehensive Income i.e. OCI Statement which is the second part of the statement of profit or loss which is placed after the Profit after tax element. So, a lot of such factors are determinable in such cases.

Now let's assume a case that in the same company “Total Revenue from Operations” is Rs. 1,200 of which the gain due to “Fair Value changes” is Rs.800. In such a case, its “Revenue from core operations” will be Rs. 400 only. So, I hope you have understood that one should focus on “Revenue adjusted with Fair Value changes” rather than “Total Revenue from Operations.”

Coming back to UTI AMC, its Revenue after Fair Value changes is as follows:

After ignoring one item of gain due to fair value changes, the position of revenue differs significantly.

Conclusion:

Based on the above, you must have understood the result of significant change in revenue pre and post consideration of the gain due to fair value changes in the case of UTI AMC on change in revenue from operations for Q1 of FY 2021 and FY 2020.

Note: We have not covered the technical perspectives like financial assets and relevant Ind AS which deals with this concept like IND AS 32, IND AS 109, and IND AS 113. The above blog writes up is only for the purpose of basic understanding about the gain or loss due to fair value changes. There are various other factors that can be considered and dependent ones, based on accounting policies and estimates followed by the companies.

JOIN THE LIVE WEBINAR BY CA RACHANA RANADE

Comments (0) details

UTI AMC

Equitas Small Finance Bank is the largest SFB in India in terms of the number of banking outlets, and the second-largest SFB in India in terms of assets under management and total deposits in Fiscal 2019. They have a market share of 16% in terms of Assets Under Management in India. It is a subsidiary of Equitas Holding Limited (EHL).

IPO season continues with the 12th IPO post lockdown this year. IPO subscription starts from Oct 20, 2020, till Oct 22, 2020. The IPO price range is from Rs. 32 to Rs. 33 per share. The minimum market lot is 450 shares and in multiples thereof. At the upper price band, the subscription amount for 1 lot is Rs. 14,850. The shares are expected to list on Nov 2, 2020.

We already had a detailed discussion regarding the IPO in our video on YouTube. Here, are some additional points that we need to know about the bank.

SWOT Analysis of the bank:

Litigations against the bank:

Although no major litigation cases are pending against the bank, we found that RBI has taken action against the Bank on multiple occasions.

1) In 2016, Bank received final approval to carry out SFB business, subject to a condition to listing the bank within 3 years as per para 6 of the SFB Licensing Guidelines. In 2019, RBI found that the Bank violated the timeline so given in the above-mentioned para and imposed regulatory actions on the Bank with immediate effect. Accordingly, Bank was not permitted to open any new branches till further advice, and the remuneration of MD and CEO stood frozen at the existing level until the listing is done.

2) In 2018, Bank had violated the SFB Licensing Guidelines and provisions of the Banking Regulation Act by distributing mutual fund units, pension products, insurance products, and other such financial products/services on a non-risk sharing basis without taking prior approval of the RBI, as required under the SFB Licensing Guidelines. RBI levied a penalty of Rs. 1.00 million on our Bank for such omission.

3) Again in 2019, Bank increased its Authorized Capital without seeking exemption from RBI. The Rule - section 12(1)(i) of Banking Regulation Act - banking company can carry on business in India subject to the condition that the subscribed capital of the company is not less than one-half of its authorized capital, and the paid-up capital of the company is not less than one-half of its subscribed capital. On January 31, 2019, the bank increased the authorized share capital from Rs. 11,550 million to Rs.25,000 million by passing a resolution, when it had a paid-up capital of Rs. 10,059.4 million. So, the Bank violated the rules. RBI through its letter to the bank noted with serious concern that the Bank had neither noticed non-compliance with the provisions nor sought exemption from the RBI. RBI further advised the bank to be more careful in the future. Finally, on Nov 07, 2019, the bank reduced its authorized capital to 17,000 million to comply with the provisions.

The point here is, this highlights a weak compliance team of the bank. In the future, it might lead to the risk of unnecessary penalties due to non-compliance with RBI norms.
If you want to know whether I am applying to the IPO or not, check my Instagram Live at 12 noon on Oct 22, 2020.

Comments (0) details

Equitas Small Finance Bank

A credit default swap (CDS) is a financial contract between two parties in which one party (the protection buyer) pays a periodic fee to the other party (the protection seller) in exchange for protection against the risk of default by a third party (the reference entity) on a particular debt obligation. In simpler terms, a CDS is a type of insurance policy on a particular bond or loan.
If a credit event (such as default, bankruptcy, or restructuring) occurs with respect to the reference entity, the protection buyer receives a payout from the protection seller to compensate for the loss. The payout is usually the difference between the face value of the debt obligation and its market value after the credit event.
Let us understand CDS with an example
Suppose that Company XYZ issues $1 billion in corporate bonds with a maturity of 10 years. Investor A purchases $10 million of these bonds.
However, Investor A is concerned about the possibility of Company XYZ defaulting on its bond payments, which would result in the loss of its investment. To protect themselves against this risk, Investor A decides to enter into a credit default swap with Bank B.
Under the terms of the CDS, Investor A pays Bank B a periodic fee (say, 2% per year) for the duration of the bond term, in exchange for Bank B agreeing to compensate them if Company XYZ defaults on the bonds. Bank B becomes the protection seller, while Investor A becomes the protection buyer.
Now, let's say that five years into the bond term, Company XYZ experiences financial difficulties and misses a bond payment. This is considered a credit event, and Investor A can now make a claim on the CDS with Bank B.
Bank B will then pay Investor A an amount equal to the loss incurred from the bond default. For example, if the value of the bonds drops to $8 million due to the default, Bank B will pay Investor A $2 million (the difference between the original $10 million investment and the current $8 million market value of the bonds).
In this way, Investor A has effectively transferred the risk of default to Bank B in exchange for a periodic fee. Bank B, on the other hand, earns income from assuming the risk of default and can use the fee to offset any potential losses.

Recently the price of Credit Suisse’s one-year credit default swaps surged which means the premium for securing these bonds is rising. Generally, CDS are high for risky bonds, and as the price of Credit Suisse’s one-year credit default swaps is rising so are the bonds risky? Is there a risk of default and if yes what would be the impact on India if such an event occurs? These are some of the important questions associated with the rising CDS of Credit Suisse and to know the answers to all such questions do checkout the below YouTube video on my channel

Comments (0) details

What are Credit Default Swaps?

Imagine this... It’s a beautiful day. Your salary just got credited and you decide to treat yourself a little. You go on Amazon to buy some clothes. After hours of scrolling, you finally find a T-shirt you like BUT!!! The customer rating for that T-shirt is very low. Would you still buy that T-shirt? Hold that thought…Just like every product available on Amazon has a rating, we all have a rating based on our credit history, called Credit Score. So now tell me, would you, as a bank, give a loan to someone with a Low Credit Score? The answer to both the questions is a big fat NO, A low score is a clear red flag, isn’t it? Now that you have got the crux of this, let’s understand what CIBIL score is and how you can improve it.

What is CIBIL?

Before we get into what is CIBIL score, let’s learn about CIBIL. Credit Information Bureau (India) Limited (CIBIL) is the oldest and most popular Credit information Company, authorized by RBI. They maintain credit records of individuals and businesses. The member banks and financial institutions submit their customers’ credit information to CIBIL every month. CIBIL then analyzes this data, calculates our Credit Score, and creates our Credit Information Report (CIR) which helps determine the credit score.

What is CIBIL Score?

To put it simply, our CIBIL score is like a rating given to us by CIBIL based on our credit histories such as borrowing and repayment. Banks or lending institutions use this score to understand our creditworthiness before approving any loan to minimize default risk. This score ranges from 300 to 900. The higher the score higher is your chance of getting the loan and vice-versa. If you have a good CIBIL score you may get a lower rate on a personal loan, credit cards, and lower insurance premium. However, too many loans, untimely repayment, and high utilization of credit limits can poorly impact your credit score. If you have never taken any loan your CIBIL score would be -1.

How can you check your CIBIL score?

CIBIL provides CIBIL score and Credit Report once a year for free. You just need to create an account with CIBIL online and apply for your free annual credit report. They also offer unlimited access plans allowing you to track your CIBIL score and Credit Report every 24 hours and other credit monitoring services for some charges applicable. All you need to do is visit their website and subscribe!

Ways to improve/maintain your CIBIL Score

Timely Repayment

Be it your credit card bills or EMIs, making timely payment of your dues is one of the important factors in improving your CIBIL score. If you miss your repayment deadlines, you are charged interest on the interest you are already paying. Ultimately, this reflects poor creditworthiness and drags down your CIBIL score.

Check your Credit Report

Monitoring your Credit Report will help you realize where you are spending more and what caused your score to slip. If there are any errors in your report because of incorrect information or delay in updating your report, you can put up an enquiry with CIBIL, and get it corrected. This will get your score right back on track.

Pay attention to your Credit Mix

You must have a good credit-folio including secured and unsecured loans. Secured loans include Home loans, car loans, etc. whereas Unsecured loans include personal loans, credit cards, etc. A good balance between the two indicates better credit management on your part. However, if a person highly relies on unsecured loans then it is not favourable.

Credit Utilization

Credit utilization of above 30% on your credit card can adversely impact your CIBIL score. Just because you have a certain credit limit does not mean you use it all at once. On the other hand, not using your credit card at all will also affect your score poorly. The only solution to this is to keep a track of your spending which will help in limiting your credit utilization. If you are not using any of your credit cards it is best to cancel them.

Say no to Multiple loan application

Every time you apply for a loan; the bank initiates a hard enquiry on your credit profile to understand the default risk involved. This hard enquiry is reflected on your credit report for two years affecting your CIBIL score. So, if you apply for multiple loans at the same time, it will open several hard enquiries on your account which will damage your score. Additionally, if your loan application gets rejected, it could cause more harm to your CIBIL score. So, next time you apply for a loan or credit card keep this in mind.

Avoid closing Old Debt Accounts

By now you must have understood that the CIBIL score is all about your past credit habits. Therefore, it is advisable to keep your old loan accounts open even after you have repaid them. If you have had a good credit record for past loans then it will contribute positively to your CIBIL scores.

Bottomline

Healthy credit habits can help you improve and maintain a good CIBIL Score. It will undoubtedly pay off when you need to take a loan. Tracking your expenses regularly can help you make conscious spending decisions. Manage your debt smartly and pay your dues in advance wherever possible. Your CIBIL score is a crucial factor in availing of loans and credit cards. Hence, keeping an eye on it is a must. Remember, Perseverance is the key to success, or in this case to avail credit😉

Comments (1) details

CIBIL Score

Ladies and gentlemen, welcome onboard flight- Basics of Stock Markets with service from level newbie investor to a smart investor. Please fasten your seatbelts and keep your devices, notebook, and pen handy. Tips/calls are prohibited for the duration of the flight. Thank you for choosing team CARR. Happy learning!

You might be wondering that why is ma’am making this announcement. Well, learning about the stock market is no less than a flight. When you start learning about the stock market, you take off in the market, you might even face some turbulence during the journey and ultimately you land well only if you have learned the secrets to successful and efficient investing. If you wish to board on this fun flight you have arrived at the right airport, my friend. We will make sure that you understand all the concepts, right from the basic to the advanced level in the stock market, in the most simplified manner.
Are you ready? Let’s get started!

Why should one invest in the Stock Market?

Because I said so? Absolutely no! We all have dreams and aspirations in our lives which we are passionate about. For some people, it might be getting a nice car, for some, it might be going on a fancy vacation or some might wish to build their dream home. Irrespective of what the dreams are, they become achievable when the finances are in the right place. So, let’s understand how investing in the stock market can help us in our financial life.

1. Start with a small amount :

Believe me or not, but investing in the market could cost as low as a pizza! Yes, you read that correctly. On average, we spend between Rs. 500 - 1000 on pizza. There are several quality stocks within this price range to invest in. We can even invest with a minimum of Rs. 500 regularly in stocks or mutual funds. This proves that investing in the stock market doesn’t burn a hole in the pocket. Just imagine how well your wealth and health can improve only by redirecting your pizza money into the market.

2. Enjoy the magical power of compounding :

We all have learned about compound interest in our schools. What we did not know then was how it is rightly called the 8th wonder of the world. It is simply a way of earning more interest on the already earned interest. Let’s understand this with an example. Let’s say you invest Rs. 1000 every month for 25 years expecting 10% return p.a. Your total investment amount of Rs. 3 Lacs would have grown to approximately Rs. 13 Lacs. And that, my friend, is the power of compounding!

It’s like your money is earning more money for you, isn’t it? The compounding effect would be more if you stay invested for a longer period. Hence, it is correctly said that “Time is money” and one must start investing as early as possible.

3. Victory over inflation

Inflation is like a hanging sword over our necks. It is reducing the purchasing power of our money. As per the trading economics, the average rate of inflation between 2012 to 2021 was around 6.01 percent in India. The bad news is that inflation is here to stay and we can’t do much about it. The good news is that the stock markets can help us generate inflation-beating returns of around 10-12% if invested efficiently.

This is possible because India is a developing country. Hence, our industries grow in tandem with our economic growth and have the potential to reflect and generate returns by outperforming the inflation rate.

4. Higher returns than traditional investment avenues:

FDs have been a popular choice for investment amongst Gen X (born before the 1980s) and Gen Y (Born between 1980-95). They are considered to be a safe and secure option. Currently, FD rates range between ~4.50% to 6.00% percent for tenures between 1 and 10 years. Now, have a look at the Nifty chart below. The Nifty50 index has grown ~150% in the last 10 years! I agree stocks can be volatile however, the risk gets averaged out over a longer investment term. Investing in sound and proven companies can help you generate stable and better returns than FDs

5. Additional income source:

It is always wise to have more than one source of income. If at all you face any difficulties in your professional or personal life and are forced to discontinue your job then you might experience financial distress after a while. Hence, having an additional source of income comes in handy and the stock market can be of help in this case. You can earn through value appreciation and dividends from your investments providing steady income apart from your paycheck.

6. It is not rocket science:

You do not need any fancy degree or qualifications to understand investing in the market. No matter what your educational background or age is. If you approach it in the right way, you can perform the required analysis and research all by yourself.

Bottom Line:

The stock market has its ups and downs but a learned investor will know how to glide through it all. It is always advised to learn about the market before jumping into it. An investor must be aware of his risk appetite, expected returns, and investment horizon. And the investment decision must be based on extensive research only.

There are several exciting concepts to learn like- the structure of the Indian financial market, what is Nifty, the basics of IPO, different types of corporate actions, Dividends, Stock splits , Block deals, and many more!.

Click the following image to know how to start learning about the stock market.

After understanding all of this, if you want to level up a little, you can check out my course on “Basics of Stock Market” wherein I have explained everything you need to know before starting your investment journey. Click on the link to know more. Until next time!

Comments (0) details

Why you should invest in the stock market?

Blog

What is Experience Timeline?

Why Experience Timeline?

About Infosys Limited:

Experience Timeline of Infosys:

Conclusion:

1. On the basis of Liquidity of Banks - Capital Adequacy Ratio:

2. On the basis of Asset Quality:

3. On the basis of Profitability:

Embeded Value [EV]

New Business Premiums [NBP]

Introduction:

SWOT Analysis of the bank:

Litigations against the bank:

What is CIBIL?

What is CIBIL Score?

How can you check your CIBIL score?

Ways to improve/maintain your CIBIL Score

Bottomline

Open an account with

Open an account with

Download our apps