Things you should check while reading stock quotes…

The stock price page is a wealth of information. Open any financial newspaper and the markets page is a collection of closing prices of the top 800/1000 stocks. However, the stock price page is not just about static prices alone. There are some other very critical information about the stock and the company which can also give you some unique technical insights into the stock. Here are 7 things you must read while you are checking stock quotes… Continue reading

Things to consider before you invest in stocks…

The legendary fund manager Peter Lynch rightly said, “Behind every stock there is a company that has a running business. Try to understand that business.” That probably sums up the gist of what investors need to do. When you buy a stock it is not just about the business of the company, it is also about the sector in which the company is operating and the macroeconomic environment that the company is operating. Additionally, you need to also understand the product life cycle. We all know how Nokia literally went out of business within 7 years of the launch of the I-Phone and the Samsung smart-phone. We also know how Satyam and Deccan Chronicle went bust because managements did not act in the interests of shareholders. Here are 6 things that you need to consider before you invest in the stock… Continue reading

Options Delivery – How interesting a product could this become?

The regulator proposes to come up with detailed guidelines for permitting actual delivery against stock futures and stock options. Currently, all transactions on the F&O segment in the equity markets are cash settled only. That means, irrespective of whether you reverse your position or exercise your option, the eventual impact will only be adjusted in cash. That defeats the entire purpose of exercising the option and that is what the SEBI is now trying to redress… Continue reading

Mutual Fund AUM

A great start, but MF industry still has a long way to go…

Mutual fund Assets under Management (AUM) in India crossed the $300 billion (Rs.20 lakhs) mark for the first time in its history. While the growth has been frenetic in the last 3 years (AUMs have doubled since 2014), it is equity funds that have actually been the star performers in terms of retail collections. So, what exactly has led to this frenetic growth? Remember, even at $300 billion the entire mutual fund AUM is much smaller than the AUM of individual global mutual funds… Continue reading

ITC versus IIAS – An absolutely pointless defamation case…

Recently, ITC has slapped a defamation case to the tune of Rs.1000 crore against IIAS, a proxy advisory service based out of India. The reasons, to begin with, are quite frivolous. Ahead of the AGM last month, IIAS had urged the shareholders of ITC to vote against a particular resolution. While majority shareholders eventually voted in favor of the resolution, the company has still sought defamation charges from the proxy advisory… Continue reading

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