Generating a stock idea

Generating a stock idea

Macro Trends – Keeping a general tab on the macroeconomic trend is a great way of identifying good stocks. Here is an illustration of the same – As of today there is a great push for infrastructure projects in India. An obvious beneficiary of this push would be the cement companies operating in India. Hence, I would look through all the cement companies and apply the checklist to identify which amongst all the cement companies are well positioned to leverage this macro trend.

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ஏறுகிற சந்தையில் ஈக்விட்டி மியூச்சுவல் ஃபண்டுகளில் முதலீடு செய்வது எப்படி?

ஏறுகிற சந்தையில் ஈக்விட்டி மியூச்சுவல் ஃபண்டுகளில் முதலீடு செய்வது எப்படி?

ரிஸ்க் அதிகம் விரும்பாதவர்கள் சந்தை மிக அதிகமாக ஏறியுள்ள இந்தக் காலகட்டத்தில், ஈக்விட்டி மியூச்சுவல் ஃபண்ட் முதலீட்டில் அதிக லாபம் இருக்கும்பட்சத்தில், ஒரு பகுதியை கடன் சார்ந்த மியூச்சுவல் ஃபண்ட் முதலீடுகளுக்கோ அல்லது பேலன்ஸ்ட் ஃபண்ட்களுக்கோ, மற்ற கலப்பின திட்டங்களுக்கோ மாறுவது நல்ல பலன் தரும் என்று எதிர்பார்க்கலாம். 

மேற்கண்ட குறிப்பு முன்னரே முதலீடு செய்து லாபம் பார்த்தவர்களுக்காக. 

மீ. கண்ணன், நிதி ஆலோசகர்

-vikatan

The Moat

The Moat

Moat (or economic moat) is a term that was popularized by Warren Buffet. The term simply refers

to the company’s competitive advantage (over its competitors). A company with a strong moat,

ensures the company’s long term profits are safeguarded. Of course the company should not

only have a moat, but it should also be sustainable over a long period of time. A company which

possesses wider moat characteristics (such as better brand name, pricing power, and better market

share) would be more sustainable, and it would be difficult for the company’s rivals to eat

away its market share.

To understand moats, think of “Eicher Motors Limited”. Eicher Motors is a major Indian automobile

manufacturer. It manufactures commercial vehicles along with the iconic Royal Enfield bikes.

The Royal Enfield bikes enjoy a huge fan following both in India and outside India. It has a massive

brand recall. Royal Enfield caters to a niche segment which is growing fast. Their bikes are

not as expensive as the Harley Davidson nor are they as inexpensive as probably the TVS bikes. It

would be very hard for any company to enter this space and shake up or rattle the brand loyalty

that Royal Enfield enjoys. In other words, displacing Eicher Motors from this sweet spot will require

massive efforts from its competitors. This is one of Eicher Motors’ moat.

There are many companies that exhibit such interesting moats. In fact true wealth creating companies

have a sustainable moat as an underlying factor. Think about Infosys – the moat was labor

arbitrage between US and India, Page Industries – the moat was manufacturing and distribution

license of Jockey innerwear, Prestige Industries – the moat was manufacturing and selling pressure

cookers, Gruh Finance Limited – the moat was small ticket size credits disbursed to a certain

market segment…so on an so forth. Hence always invest in companies which have wider economic

moats.

Circle of Competence

Circle of Competence

This is where you leverage your professional skills to identify

stock ideas. This is a highly recommended technique for a newbie investor. This method requires

you to identify stocks within your professional domain. For example, if you are a

medical professional your circle of competence would be the healthcare industry. You will

probably be a better person to understand that industry than a stock broker or an equity research

analyst. All you need to do is identify which are the listed companies in this space

and pick the best based on your assessment. Likewise if you are banker, you will probably

know more about banks than the others do. So, leverage your circle of competence to pick

your investments.

The point is that the trigger for investigating stocks may come from any source. In fact, as and

when you feel a particular stock looks interesting, just add it to your list. This list over time will be

your ‘watch list’. A very important thing to note here is that a stock may not satisfy the checklist

items at a particular time, however as the time progresses, as business dynamics change at some

point it may match up to the checklist. Hence, it is important to evaluate the stocks in your watch

list from time to time.

Mutual Funds | Mutual Fund Investment -Mk Prabhagharan

Mutual Funds | Mutual Fund Investment -Mk Prabhagharan

Investing your money in the financial markets and earning lucrative rates of return seems to be an attractive option, right? After all, all of us would like to choose profit-making investment projects and add to our stock of wealth in the long run.Financial Planner Karur the process of actually making profits in financial markets is not very straightforward. This is the point where services of financial planners come in handy. The most expert and best financial planners can guide you in your investment decision-making, often choosing the right investment projects that should be added to your portfolio. Indeed, in order to arrive at wise, informed and profitable investment decisions, you need to find a financial planner at the very outset itself.

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Investors should ideally have a pre-determined target rate of return they desire from investment projects. Financial planners can help their clients achieve these targeted investment return rates. The advisors also can recommend particular projects on which clients should invest their money, in order to earn significant profits in the long run. Financial Planner Karur should ideally be able to gauge the "risk-tolerance"  of the investors, and accordingly, advise certain types of projects to clients. Investors also need to be totally candid about their current financial positions, in order to reap maximum benefits from the services of financial planners.For more details visit=>http://mkprabhagharan.com/

MK Prabhagharan Best stock broker in Madurai |Contact Us +91 98943 33189

MK Prabhagharan   Best stock broker in Madurai |Contact Us  +91 98943 33189

MK Prabhagharan Shares and Stocks website has been created for purpose of an educating wealth managements through proper long term investments via stock market and mutual funds .A stock market is a market for the trading of publicly held company stock and associated financial instruments (including stock options, convertibles and stock index futures).

.Many years ago, worldwide, buyers and sellers were individual investors and businessmen. recently markets have typically become "institutionalized"; that's, patrons and sellers square measure mostly establishments whether or not pension funds, insurance corporations, mutual funds or banks. This rise of the institutional capitalist has brought growing expertise to all or any aspects of the markets.

The money market is a subsection of the fixed income market. We generally think of the term "fixed income" as a synonym of bonds.  Best Share Broking Company In Tamilnadu, a bond is just one type of fixed income security. The difference between the money market and the bond market is that the money market specializes in very short-term debt securities (debt that matures in less than one year). Money market investments are also called cash investments because of their short maturities. Money market securities are essentially IOUs (an abbreviation of the phrase "I owe you") issued by governments, financial institutions and large corporations. These instruments are very liquid and considered extraordinarily safe. Since they are extremely conservative, money market securities offer significantly lower returns than most of the other securities.

Debentures:

A debenture is the most common form of long-term loan taken by a company. It is usually a loan repayable at a fixed date, although some debentures are irredeemable securities; these are sometimes called perpetual debentures. Most debentures also pay a fixed rate of interest, and this interest must be paid before a dividend is paid to shareholders.

Bonds:

A bond is a debt investment with which the investor loans money to an entity (company or government) that borrows the funds for a defined period of time at a specified interest rate.

Preference shares:

Preferential shareholders enjoy a preferential right over equity shareholders with regards to:

Receipt of dividend:

Receipt of residual funds after liquidation

However, preferential shareholders do not have voting rights; they are entitled only to a fixed dividend.

Equity shares such as:

   1 Share in the profits of the company (in the form of dividends)

   2 Share in the residual funds after liquidation / winding up of the company,

   3 Selection of directors in the board, etc.

Equity shares represent proportionate ownership in a company.  Best Share Broking Company In Tamilnadu  own equity shares in a company are entitled to ownership rights.For more details visit=>http://mkprabhagharan.com

Best Brokers by Low Cost Stock Broker and Transaction Charges 2017

Best Brokers by Low Cost Stock Broker and Transaction Charges 2017

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For those who do not have a demat account, setting one up with a broker will involve various charges such as account opening charge (Rs. 250-750), annual maintenance charges (Rs. 300-550). Low-Cost Stock Broker allows you to map existing MF (mutual funds) investments with your investment account.

For a small fee, the investor gains from the stock-picking ability of the professional fund manager do not have to track his portfolio and also benefits from tax exemption of portfolio gains. Did you know that in India, individual investors hold more stocks than they have mutual funds? Only about 4.5% of the total market capitalization in India is held through equity funds, whereas direct holding by individuals is nearly 22% of the market capitalization. The point is, why should. 

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