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Should you keep your money in banks for Investment??

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The big question today arises if the money kept in banks is a form of investment or not?  Now what is "INVESTMENT" ?? Investment, is the decision which an investor takes where he uses his money to generate a fixed amount of interest over a period of time, the principal smount remaining intact. The banks give a prescribed rate of interest in their savings account and also on their schemes made for "economic welfare" known as fixed deposits. A majority of households in India considers that banks are the best institutions humans has ever created because of two reasons, first - money is totally safe and they will never loose their money if they keep it safely in banks. second - interest of 6% is given as extra in savings and fixed deposits.  If you think the same, then you have not got another 2 things clear until now. First - the power of money and its wonders of multiplying itself to 1000 times dhen invested correctly. Second - the concept of risk and how ...

FUNDAMENTAL ANALYSIS : ARE THEY THE TOP PHARMA STOCKS???

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In my last  article  , I wrote how dangerous the Pharma Industry can be if not analysed properly before making "The Investment" in a particular company and what are the main reasons behind the sudden uprise of Pharma stocks during the covid lockdowns.  I even stated how a wise investor can get higher returns from " the drugs sector" and reduce the scale of risk and losses from his portfolio by just " analysing the fundamentals of a company thoroughly ".  Therefore, here is the fundamental analysis of the first six companies ( as stated in the previous  article ) 1. Abbott India : Abbott is a MNC ( Multi National Corporation), already well established in Asia Pacific, Europe, Middle East and South Africa, & The Americas. The MNC went on establishing its name in India in the year 1990, and is headquarted in Mumbai, Maharashtra.  1. Managing Director of Abbott India - Ambati Vanu ( September, 2016) His salary as recorde...

INVESTMENTS in PHARMA SECTOR can make you a BEGGAR ??

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If you are investing in the pharmaceutical industry just with the belief in your mind that " this sector will grow in and after Covid Pandemic ", then you are indeed going to be a beggar. We have seen a sudden uprise and growth in the industry concerning medicines since the past few months.  After the coronavirus lockdown which was approved " worldwide" , this was greatly shocking and confusing to the investors. Where all the industries were closed and production was stopped completely for the first few months, the analysts saw a greatest downfall in the Nifty and Sensex after The Great Depression.  However, the pharma index continued to rise for a few hundred points even in the most severe situations. This forced the investors to believe the pharma companies rising in the pandemic to be " fundamentally so strong to beat the extreme situations " . This belief was totally wrong and the growth of this particular sector was only due to the followi...

THESE SECTORS WILL CREATE YOU WEALTH EVEN IN COVID -19

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The pandemic of covid 19 has hit the World Economy badly and almost all the economists around the nation are expecting a "Recession" very soon which is going to last for some time. Even amidst this staggering situation,            " A LIST OF COMPANIES HAVE MANAGED TO PERFORM WELL AND WILL CONTINUE DOING SO POST THE CORONA VIRUS PERIOD" Without further delay, here's the list (with explanation, no hits in the air) 1. E-COMMERCE : The e-commerce sector will has already seen a major growth during the lockdowns as everyone (almost!!) were locked inside their houses with almost no or very less acess to he shopping in the markets and malls.  The lockdown was essential and so was people's purchases of day to day items in order to survive. People who might have never used ecommerce sites, due to their inability to check it with their hands while buying and lack of satisfaction one derives from bargaining prices, also saw it as a safer a...

BASICS OF INVESTMENTS : Lesson no 4

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A lot of people are ignorant about the currency market prevailing in the World Economy, how it works and the way people make money from it. What is Forex Market?  Forex Market is the short for Foreign Exchange Market. Currencies are traded (bought and sold) and exchanged in the market and people make money out of fluctuating prices of the currency in this highly volatile market environment.  It acts on a global note and banks and other commercial institutions from all over the world are a part of this market. This the reason they are open 24 hours a day and 5 days a week ( Monday to Friday ). The Reserve Bank of India (RBI) acts as a regulator in the Indian Forex Market. RBI is also known as a "  watchdog " of the Currency Market here. The apex institution of the country makes laws to be followed by the forex traders keeping in mind the effect this part of this has on the country's foreign exchange.  Worldwide, the most traded curr...

BASICS OF INVESTMENTS : Lesson no 3

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This lesson will deal with commodities market.  Before we start with the lesson, let me tell you, while I was researching for the topic, I read an interview of " The Oracle Of Omaha " the topmost investor of this world, Mr. Warren Buffett,  in which he openly exclaimed how little faith he has on the commodities market due to its highly volatile nature and high conditions of the traders to loose money. He states two must to do rules in order to win in a market . Rule 1 : Never loose money Rule 2 : Bdver forget rule 1 The commodities market doesn't enjoys a "very good investment option" reputation in the industry and is used by traders only, for speculation and gambling.  Mr Buffett even says how predicting the growth of commodities while trading in this highly fluctuating market is close to impossible.  What is commodities market? Commodities market is a market where commodities are traded (bought and sold) in the s...

BASIC INVESTMENTS : Lesson 2

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As stated earlier, three most important markets at the world level are as follows : 1. Stock Market 2. Currency Markets or Forex market  3. Commodities Market Starting from STOCK MARKETS, following characteristics explains them : 1.  In order to raise large capital from the market and extend their businesses, companies convert themselves into joint stock corporations and distribute their shares in the market. 2. Shares are the units of ownerships of the shareholder in the company. The number of shares he holds, describes the amount of interest he has in  the company.  3. Shares are of two types :  a) Equity Shares  b) Preference Shares 4. Equity Shares : Those shares which get a certain amount of profit as dividends, though at last, and the voting rights on carious decisions taken by the company . The liability of an equity shareholder is restricted to the amount of the share but they f...