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Identifying a best managed company with 9 must have qualities 2008-03-17 05:44:00 Good qualities
leads a company
to success. As an investor it is a must requirement to know about the companies and its capabilities before invest to its stock. A company with good growth or growth potential only can give you enormous value to your investment. Identifying excellent companies required considerable efforts and research on various areas where the real success lying.Here are some important points you should consider and based on this, you can individually determine whether the company is in a groups of best managed or not.#1. Vision – A companies vision to its business areas and future are the most important factor to its success. A company has enormous capital structure and it does not have any perfect vision to its future, its is a dead company and avoid it. Vision is imp
One up on wall street by Peter Lych – The investors best friend 2008-03-16 09:56:00 As an investor you should buy the book ‘On up on wallstreet ‘ by great investor Peter
Lynch and keep in your library to read promptly.In his bestseller, he is clearing the common doubts of all investors, some of which mentioned below, to be a good investor.# What are the best investment instruments?# What is a stock market index and what an investor do with the same?# Which are the best companies for future?# Whether to believe analyst reports?# What are best timings to buy and sell equities?These are some of the common doubts investors have in mind when start investing. Peter Lynch providing us a better advise and solution to understand all these doubts through his book.While reading One Upon Wall Street, you will get the idea on better investment decisions. Even though, below are som Read more:best friend
, friend
Invest in ULIP, the double edged sword 2008-03-15 08:29:00 In the investment world the instrument ULIP generally known with a pet name, Double Edged sword. Why? This is the instrument providing disciplined investment opportunity as well as Insurance to the policy holder.There are certain things to be considered while selecting a ULIP as an investment instrument for an investor. These things are most important about ULIP before starting the policy. Before investing in ULIP keep the following points in mind:# ULIP is an instrument which is not for short term investor.# ULIP investments are for those who have a long term focus of more than 10 years.Why this is not an instrument for short term investors? Of course, its high cost compare with a mutual fund or an ordinary insurance like endowment or money back policy. A ULIP is a better instrument for t Read more:double
10 Financial mistakes we make 2008-03-19 09:33:00 Committed out of ignorance, inertia, laziness or confusion, these mistakes can add up to a fortune over a life time.Look at the mistakes with a different perspective and you see nuggets of wisdom on the fundamentals of financial planning. Hidden in each solution is the way you ought to save and invest. Here’s a tip on how to extract the best of the story: scan all the mistakes and focus on those you commit.1. Confusing salary with income...and how to avoid itDo you assess your financial worth by the number of zeroes in your pay slip? Naturally you plan expenses and savings accordingly. Worse, you even calculate income tax on that basis. You are underestimating your income and tax. Mistake 2 Investing without a clear plan...and how to avoid it Would you drive to a new destination without Read more:Financial
9 golden rules of stock investing 2008-03-18 09:22:00 All successful investors follow some rules and applying them in a disciplined manner, you will become rich in the future. To achieve this goal, you have to find the stocks that beats all market conditions like fluctuations etc, for long term. As an investor you should develop a rational strategy that works over the long-term. There are different types of strategy depends on investors. Legend investor Warren Buffett and Founder of Fidelity house Peter Lynch all have different strategies but that works fine.Below are some ideal rules that an investor can follow to build and apply there on better investment strategy to select a winning stock thus a successful portfolio.Rule #1. Select company with higher Sales and a 30% year to year growth in sales.High sales growth showing the quality of a c
Investing THE PETER LYNCH WAY 2008-03-24 01:37:00 Peter Lynch’s mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as professionals by doing just a little research. Investment opportunities abound for the layperson.By simply observing business developments and taking notice of your immediate world – from the mall to the workplace – you can discover potentially successful companies before professional analysts do.Gaining this edge on the experts is what produces ‘tenbaggers’; stocks that appreciate tenfold or more and thus turn an average portfolio into one that’s a star performer.Investors who get in early, almost at the beginning, end up making boatloads of dough.In the 13 years Lynch ran the Magellan fund from Fidelity, he outperformed the S&P 500 stock index no les Read more:Investing
Investing THE WARREN BUFFETT WAY 2008-03-26 20:34:00 The most famous “graduate” of the Benjamin Graham School of value investing, which looks for stocks with unjustifiably low prices in relation to their intrinsic worth.Once Buffett determines the intrinsic value of the company, he compares it to its current market capitalisation – which is the current total price. If his measurement of intrinsic value is 25 per cent higher than the extant market capitalisation, Buffett sees value. Sounds easy, doesn't it?Well, Buffett's success, depends on his unmatched skill in accurately determining this intrinsic value. While we can outline some of his criteria, we have no way of knowing exactly how he gained such precise mastery of calculating value.Buffett is a focus-investor, preferring narrow portfolio with a high concentration of FMCG and cons Read more:Investing
Investing THE TEMPLETON WAY 2008-03-26 05:54:00 A value-oriented contrarian with a global perspective, John Templeton stresses flexibility. He is against permanently adopting any asset or type of selection.In a sense this is understandable given that his investing style is comparison-shopping (always be ready to ditch one stock for a better one), and the confidence engendered by a wealth of knowledge.He was the pioneer in the global search for value and the founder of Templeton Group. Given his global bargain-hunting style, he looks for open economies with low socialistic tendencies and pro-investment policies.It is interesting to note how he determines value.To him, a hundred or so factors can be considered in making an appraisal, but most of these are industry-specific; four are always present: The four key factors to consider in fund Read more:Investing
How to stop a bad habit step by step and convert that spending to millions 2008-03-30 07:29:00 In my previous and famous article, convert a bad habit to millions
, I have said the best possible methods to stop a bad habit and convert that spending to millions of dollars by making proper decisions. As a continuation of the same, I am giving some best possible ideas to stop a bad habit, smoking, which is stealing a major portion of money from a smoker. Try the following methods and inform me the status.There are 2 methods available in front of a smoker to stop his habit. One is to reduce gradually and completely stop smoking. Second is, stopping immediately at once.This is some possible step by step suggestions help you to reduce the habit gradually and stop completely.Try to smoke half of a cigarette always. To do this, before lighting a cigarette, break half and smoke.Have a strict
Key aspects while investing in equities 2008-03-28 08:40:00 Below are some basic but key aspects
an investor should take care of while investing in equities to get proper security on the capital and better profits:1. Always invest on a company whose business in understandable. This is an advice and practice from legend investor Warren Buffett. When the IT boom started and start giving super profits to investors in the beginning, Warren Buffet doesn’t even hold any shares of IT companies. He said, he didn’t understand their business. As a result, IT stocks crashed and put huge lose on investors. This is history and evidence. So go ahead with a company whose business is well known and understandable.2. Always invest for long term. In the long term, stock prices trace earnings growth and also, the companies ability to generate free cash flow. Whil
41 rules for an equity investor 2008-04-04 00:55:00 Famous contrarian investor and the Chairman of Dreman Value Advisors, David Dreman in his best seller, Contrarian Investment Strategies: The next Generation, giving 41 rules for an intelligent investor to remember when dealing with equity investment selection.A sure thing almost nobody playsRule #1: Do not use market timing or technical analysis. These techniques can only cost you money.Experts err predictably and oftenRule #2: Respect the difficulty of working with a mass of information. Few of us can use it successfully. In-depth information does not translate into in-depth profits.Rule #3: Don’t make an investment decision based on correlations. All correlations in the market, whether real or illusory, will shift and soon disappear.Rule #4: Tread carefully with current investment me
5 must consider contrarian stock selection strategies 2008-04-03 03:25:00 #1. A strong financial positionThis means looking at debts and assets. A cheap stock relative to earnings is not cheap if the liabilities are so great that the company is going into bankruptcy. Make sure the company has sufficient reserves to survive the crisis and conservative debt levels.#2 As many favorable operating and financial ratios as possibleReturn of Equity (ROE), Return of Assets (ROA), profit margins, low expenses. All that Stuff to analyze carefully.#3 A higer rate of earning growth that the S&P500 in the immediate past, and the likelihood that it will not plummet in the near future.Contrarian companies have already been to the dog house, they have often made enormous loses and this is what put then where they are today. If the company makes even a modest profit therefore Read more:selection
Types of returns from Mutual Funds 2008-04-02 05:18:00 # There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution. # If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. # If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds
will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. Bloghome
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, Mutual Funds
Successful investment practices for an equity investor 2008-04-06 05:40:00 Equity investment
is a must have in one's portfolio if he is serious on accruing wealth. Lots of time time to research and good amount of patience required (read this article, the Requirement of patience by an investor) to an equity investor to succeed. Here are some best practices for investors who's serious on direct equity investment. For simplify, these practices divided to three, self assessment, fundamental research and profit analysis as well as some best practices: Self assessment1. What is your investment objective?2. What is your perspective? Long term or short term? (To get profit from equity investment, one should have a long term perspective. It is advisable to have a 5 to 10 years time perspective for a successful investor to double his money or receive proper returns from h
Self assessment questionnaire for ULIP buyers 2008-04-05 04:55:00 ULIP or Unit Linked Insurance Plan is a product designed to offer insurance and investments opportunities for long term ULIP buyer. Ideally a 10 years or more focus required by a ULIP buyer to get profit or good returns from his investments. Short term focus to ULIP is not recommended because of the charges tailed with ULIP products are comparatively higher from a mutual fund or any other investment instruments.In general, know that two types of ULIP’s, Type I and II. A Type I ULIP pays the higher of sum assured or fund value as death benefit, while TYPE II pays the sum assured as well as the fund valueIn this article, I am presenting a bunch of questions that and investor should ask to himself for an assessment before planning to buy any ULIP products.Investment objective 1. Identify
Creating wealth step by step 2008-04-09 09:05:00 As we all are aware, creating wealth required a fail proof planning from the beginning and have disciplined actions. At a very first, understand that, creation of wealth is not an hour, day or some months process. Below given, step by step points will certainly make you able to identify, plan and achieve your goal.While dealing with wealth creation, one should identify the possible loop holes and incidental situations that may cost him money. To avoid any possible withdraw from investments that you have made as the part of your wealth creation, a structured planning required.1. Understand that wealth creation is not an hour, day, month or some years process. It requires time and patience.2. Do have a goal. Find out how much money you want to meet that goal and invest a proper proportion ea Read more:Creating
Strategies for Intelligent investment in Mutual Funds 2008-04-10 07:50:00 Mutual funds are the best friend for an investment
focused person which is giving professional management to his money and better profit in long run. Thos who are not having enough time to study, research for a direct stock investment, can certainly opt the path of mutual fund to build a better investment portfolio.Below are some guidance and steps for a mutual fund investor to be aware before making any investments with any mutual fund products.1. Identifying your goal is most important prior to build an investment portfolio.2. Identify the risk level you can bear.3. Always use SIP (Systematic Investment Plan) to build mutual fund portfolio. An SIP enable you to manage your money properly and providing security from fluctuating market as well as make you a disciplined investor.4. Learn ab Read more:Strategies
, Intelligent
, Mutual
, Funds
, Mutual Funds
Simple and perfect Wealth Building Strategies 2008-04-12 09:36:00 Building wealth is a long term process through saving money in a proper proportion to proper investment instruments. You can have great wealth saving your money in a disciplinary way using determination, passion to reach your goal. Below are some strategies a person required while deciding to build wealth for a long term rum.1. Pay your bills properly. To build wealth, it is a must requirement that you should be free from all the debt by properly paying your bills. If you do not set aside money before you start paying your bills, chances are you will never save any many after you pay these same bills. Maximize your contribution to 401k if you are able, especially if your employer matches your contribution.2. Save as early as possible. The first step for those who are in process of wealth c Read more:Simple
, Wealth
, Building
, Strategies
Understand your risk profile and advisable investment proportion 2008-04-15 09:34:00 Understanding your risk profile
is the important part for an investor before making any investment
decisions. Proper understanding of risk appetite enable one to choose correct investment products that suitable to his risk profile. Entering to investment world blindly, will cause you lose as well as pains if not getting your expected results. For example and average investor with who is conservative and not willing to suffer any lose from the investment should not select 90% of his investments in equity. Else, he has to choose more guaranteed debt investments for his portfolio.Once you have found the answer for how much risk you can take and confident on that, second part is the investment product selection. There is a truth in investment world, those who requires high returns with minimum Read more:Understand
How to balance a portfolio with magic of maths 2008-04-14 07:28:00 Everybody in the investing world probably heard the must requirement of portfolio balancing depends on your age. Balancing your portfolio between equity and debt investment instruments entirely depends on the Golden Investment Balancing Rule, “Reducing your age from 100 and have the resulted percentage in equity and rest in debt instruments”. For example, if your age is 25. Subtracting 25 from 100 will give you 75. In your case, your portfolio should have 75% of equity exposure and 25% in debt instruments. I agree.But there is a hidden and difficult part if you look deep inside to this balancing formula. Before saying the same, you should know what the exact result the rule makers intend to give by this rule.By this rule, someone should balance there portfolio properly from the younger Read more:maths
Comparing mediclaim policy - the factors to be considered 2008-04-17 07:28:00 We all know that our health is the most important thing that we can ever have. Losing ones health could at times be worse than losing one’s life, sentiments shared by many a sick individual, and by almost every ailing person whose finance might not cover his sickness. Mediclaim policies are your best friend and an integral part of an investors portfolio to cover the major money losing loophole. Little knowledge and patience can lead you to making an investment that will help you cover your biggest asset. Health. Knowing to compare the policies from various companies would enable you to identify the correct product in right time.While deciding your portfolio making, it is a major part to consider how you can deal with the situations that cost you money. Cost for medical treatments to self Read more:factors
Wisdom from Ben Miller 2008-04-23 12:01:00 Ben Miller
is an investment guru and value investor. Below are the word of wisdom from him that will help you as an investor to be a best and successful value investor.1. I often remind our analysts that 100% of the information you have about a company represents the past, and 100% of a stock’s valuation depends on the future.2. The market does reflect the available information, as the professors tell us. But, jut as the funhouse mirrors don’t always accurately reflect your weight, the markets don’t always accurately reflect that information. Usually they are too pessimistic when it’s bad, and too optimistic when it’s good.3. What we try to do is take advantage of errors other make, usually because they are too short-term oriented, or they react to dramatic events, or they over e Read more:Wisdom
Equity Exposure through investing in Index Funds 2008-04-26 09:51:00 If you are a laggard in direct equity investing even though you want to invest in equity, this is the best idea for you. Invest through Index
funds. Direct equity investment required lots of time and research to find out good candidate to buy there stocks. In present days, most of the people doesn’t have enough knowledge to invest in equity but they are investing equity by hearing the tips from others or depends on any news’s. At last, this action will lead them to heavy lose of their capital. If you are direct equity investment laggard, investing through index fund is the best option for you. Before starting to search and investing through Index funds, you should have the minimum knowledge about what is index fund and how it is working. An index An index fund is essentially a mutu Read more:Equity
, Exposure
, Funds
12 golden investment rules each investor should keep in mind 2008-04-27 06:41:00 1. Obtain the written documents for the particular prduct that explaining the investment
information.2. Read and understand such documents carefully prior to make any investment decisions3. Verify the legitimacy of the investment4. Find out all the costs and possible benefits associated with the investment5. Assess the risk-return profile of the investment to take proper decisin and peace in mind about your money.6. Know the liquidity and safety aspects of the investment to identify the possible traps when trying to sell or quit the product.7. Ascertain if it is appropriate for your specific goals. You should have a specific goal befor making any investment and should be well aware about the possibility to attain those goals with the present investment.8. Compare these details with other i
Why ULIP investment is a big failure for some investors 2008-04-30 09:09:00 Study shows ULIP investment
s are the best option for those who have a long term investment perspective of more than 10 years. ULIP product not only give you the best long term investment exposure but, it provide a required insurance coverage depends on the policy holder. However, a large number of ULIP investors still failing with the product investment. They either not receiving the required profit or not able to meet the goals. They started with the product with enough long term investment focus, even though the lose was huge. Below are the major reasons why a ULIP product turns to a big loser for such investors.1. Lack of product knowledge A study clearly shows that 85% of ULIP buyers doesn’t have enough knowledge about the product. They might have heard the name ULIP from various sou Read more:failure
Top 10 Qualities required by a good financial advisor 2008-05-02 11:34:00 The major obstacle for an investor is the search to identify a good financial advisor. I am giving you and idea about the personal and career qualities highly required by a good financial advisor to choose him as your own.Personal Qualities1. He should be well qualified and have master knowledge in his area2. He should have considerable experience as a financial advisor with successful performance background.3. He should have a passion to the work and should not be lazy. He should have well idea and knowledge about the services and products available in the market to select the best among them for a customer.4. He should be accessible by a customer at any time.5. A good financial advisor should not be greedy or only profit minded fellow.6. He should have enough feedback from his satisfied
5 Golden Rules for Tax Saving 2008-05-04 09:59:00 Just as rules are important for good living so also there are some golden rules of tax planning. The five simple yet effective golden rules of tax planning are:1. Spread the taxable income among various members in your family2. Take full advantage of tax exemptions available under the law3. Take full advantage of permissible tax deductions and rebates available on stipulated tax-saving investments;4. Make optimum use of tax-exempted incomes; and5. Simple tax planning is smart tax planning.Rule 1: Spread Your Income Among Your Family MembersThe first step in tax saving is to adopt the concept of divide and rule. The simple rule is that each family member must have his or her independent source of income so as to legally become an independent tax payer under the provisions of the Income Tax Read more:Golden
, Rules
, Saving
Step by step financial planning 2008-05-06 11:30:00 The word financial planning
has vast meaning. Different people can interpret the same in different style. Proper financial planning has a simple meaning that a person should not run out of money whenever a present or future requirement occurring to him or family. In India, especially middle class family are not well aware about the requirement of a good financial planning. This will put them in trouble with out of money in some situations once if they had enough money in their hand.Correct financial planning is not a single or simple process. Instead, it involves 3 major phases: Self Assessment, Planning and Execution. I am talking about the must required steps one has to follow to achieve great financial wisdom in his life. Part I: Self assessment: This is a preliminary step someone
Tapping ULIP investment profit possibilities 2008-05-14 10:33:00 Today, I am giving you an awareness section about tapping maximum profit
from ULIP investment
that one can make as an investment instrument and also a tax saving instrument.ULIP is double edged sword equipped with Insurance and investment vehicles. It will not only provide you the opportunity to get equity investment exposure but also, cover you from life incidents using insurance.Good to hear. Bu
Simple investment portfolio strategy for persons from different risk profile 2008-05-16 12:30:00 Today I am saying you about the strategy each person have to have when preparing there portfolio as the part of their financial plan. Risk assessment is the major part of portfolio planning and that is the base to decide how and where a person should invest to build his investment
portfolio. In this article I am bypassing the other required factors in a portfolio construction like age, financial b Read more:Simple
, different
, profile
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