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“One who does not know, does not know that he does not know” 

Socrates | 400 Before Christ, Athens

With the surge in return from equities, there is a barrage of new investors who have abandoned real estate or other forms of investment and diverted their money into equities. Most of these investors are first timers and they believe that free hot tips from what’sapp or other informal sources can make them wealthy. Alarmingly, most of them are investing big in “Unknown” small cap stocks by relying on these informal sources. Some have made profit and some have made loss, but the relentless rally in small cap means no one has lost hope. Last year around this time, a friend of mine asked my opinion about a hot tip stock “High Ground Enterprises”  which was hitting upper circuit every now & then.

new bitcoin

This is a follow-up post from our guest author Suyash as the grand saga of ‘cryptocurrency boom’ is unfolding before us. Bitcoin and other similar cryptocurrencies are in lot of news these days due to recent ban from China. Suyash, being a keen follower, has some more insights on the latest developments.

PS: For understanding basics of cryptocurrencies like Bitcoin, please read the earlier article – Understanding Bitcoin bit by bit

Over to Suyash!!

The battle between central banks and cryptocurrencies has begun. China recently banned Initial Coin Offerings (ICOs) from introducing new cryptocurrency tokens in China market. There are also indications that China plans to ban cryptocurrency exchanges. In contrast, other central banks & governments (including RBI) are taking a different line. In this article, we will try to make sense of these moves and how it impacts cryptocurrencies. 

reduce lossAveraging up a stock is an excellent strategy for gaining greater returns (in monetary sense) on already performing stocks. After all, if you own a stock which has gone up 50%, there is a temptation to invest more if future looks promising. While this line of thinking is perfectly fine but its execution has to be carefully planned. If this is not planned carefully, it takes just one lower circuit to put you back in loss. In this article, we will give an example with a real stock (Can Fin Homes) and also we will advise the best possible strategy to average up carefully.  

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During 1990s, stock market was considered as a  rich man’s investment option & common man was staying out of whimsical world of “share bazaar”. It was often believed that share investment is similar to gamble & good people should stay away from it. Scams like Harshad Mehta & UTI 64 only consolidated that belief. However, things have changed since last decade & domestic participation has gathered pace in last 3 years. However, the question remains if it will continue in future & how much it can impact Nifty in coming years? Let’s try to find out.

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Bitcoin is the new buzz word in market & this article aims to educate our readers about cryptocurrencies and their basic ways of working. This post is written by our guest writer Suyash Sathe and we are thankful to him for taking time out of his busy schedule while working for a singapore based american investment bank. He is a value investor who made his first investment at an early age of 16. Over to him!

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We all know that economics & stock market are correlated. Macro & Micro economics ultimately influence stock prices in the long run. In this article, we will attempt to explain the correlation between the two in a simple language. Understanding this is essential to every investor. Economic analysis is one of the pillars behind equity forecasting. It plays a key role in arriving at probable future returns from equities. For HNIs, who invest across the world, economic analysis helps them to shortlist countries with expected future returns.

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Everyone invest in small cap stocks for getting multibagger returns. Interestingly, many stocks achieve great returns in due course of time but alas we sell them too early. We can have the best of research process backing us but at the end, it all boils down to how much actual profit we are making. The question remains unknown to most investors as in how much time shall one wait before booking complete profit. In this article, we will try to analyse a recent multibagger stock’s journey ‘Avanti Feeds’ and understand why it is tough to achieve multibagger returns & how to overcome them.

new post

We all know that economics & stock market are correlated. Macro & Micro economics ultimately influence stock prices in the long run. In this article, we will attempt to explain the correlation between the two in a simple language. Understanding this is essential to every investor. Economic analysis is one of the pillars behind equity forecasting. It plays a key role in arriving at probable future returns from equities. For HNIs, who invest across the world, economic analysis helps them to shortlist countries with expected future returns.

Maslow black

There has been flash flood of money into the equities in last couple of years and this snowball is becoming bigger & bigger as it rolls down the hill. Falling interest rates have only pushed normal person to suddenly discover his risk appetite and start pouring money from bank deposit to stock market. While domestic participation is the best thing that can happen to any country’s stock market but are these new joiners well prepared before taking a plunge into the risky world of equities? The side effects of neglecting the risks associated with equities are huge. Let’s try to find out what all should be covered using Maslow’s theory as a parallel.

 

best strategy

Sensex & Nifty50 are creating new highs every week & currently exploring uncharted territory. An usual question that often comes to us from investors is how to invest in such a high market? Should we invest more, stop investment or sit on cash? In theory, we should not try to time the market since nobody knows which way market will go from here, it may continue to go up for quite sometime or may fall back when it is least expected. In this article, we will try to find a middle path which can be followed irrespective of market conditions. We recommend same approach while investing with any stock advisory service like Tiny CAPS as well.

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Equity investor community has been growing & becoming more powerful with each passing day. Experts have been warning on historical valuations & a possible bubble yet index continues to defy them year after year since Modi came to power. What has changed & why market continues to go up, will it keep on going up like this? Let’s try to find out.

retirement

Majority of the small cap investors are trying to find next multibagger stock to make huge money and retire at a serene location as depicted in the picture. It makes perfect sense, after all getting 100x returns can do wonders to your personal wealth. But getting multibagger returns are easier said than done. Not only because it’s difficult to find a multibagger stock but also due to other challenges. Many stock advisory services also lack a crucial element in their approach and thus investors never receive multibagger returns even with a paid stock advisory service. At AI, we believe in making investing simpler for investors & this post is dedicated to highlight major challenges which keeps multibagger returns away from many of us. It includes a unique challenge which most stock advisory companies will shy away from telling you.

GST

GST (Goods & Service Tax) has been much talked about topic of late. Social media is buzzing with funny meme. There has been many bold predictions & various criticism on GST. Let’s try to understand GST and it’s impact in a simpler way with AI post. We are not going into GST tax structure & technical details, there is already plenty of information on it but we will highlight it’s impact on investors & busting the confusion surrounding it.

With increasing retail participation in Indian equity market, there is a strong inflow into small cap universe. Such is the impact that small caps have beaten large & mid caps, second year in a row. Most people have jumped in this narrow space to search for next multibagger stock. While it is difficult to spot a multibagger from pure data analysis, it can be little easier if you are actively taking a note of economic trends around you. At AI, we are sharing our view & personal experience on this.

India Vs Pakistan Champions Trophy 2017 Final was a much hyped cricket game in recent times. Many people were sure of India’s win & written off Pakistan without a bowl being bowled!  The result was very different & it ended up in a one sided contest. A loss is a complete loss if we don’t learn anything from it. I am sure team India must have taken notes of their mistakes but as investors there were enough lessons for us as well.

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Market is going up everyday & touching new highs. I am sure you will be happy to see your portfolio grow stronger than ever. However, it will be different challenge when market slides down. As humans, we have affinity towards profit and aversion to loss. However, the fact is that loss occupies more space in our mind than profit. Markets are bound to go up & down and as ace investor, we should be ready to deal with both situations. So, do you have a loss containing strategy? If not, we are sharing some of our thoughts & explaining its impact, if not managed properly.

 

MArketSensex & Nifty are creating new all time record high every day. Market is optimistic & mood is euphoric. While many people have a reason to rejoice this bull run, there are a bunch of folks who are very worried & confused about if this is a time to invest more or sell more or do nothing? At AI, we have been receiving a lot of such queries about our view on current market condition, so here is our view.

IT IndustryInformation Technology Industry has been around since 1970s when a mini computer was not really mini in size! Fast forward to 2017, a lot has changed and it will keep on changing in future as well. Such is the nature of this industry. Most of the industry leaders are not listed on Indian stock exchanges, rather they are listed on American stock exchanges. As an investor, you might be thinking how to ride such trends & possibly make most of the listed companies in Indian stock exchange? Additionally, there are visa issues & a general downtrend in all IT stocks. Allow us to explain in simpler language as we do at AI. It’s a little longer article, so we are publishing it on weekend. Happy reading!

Public sector banks in India are the biggest money lenders to the population by their sheer size and reach. Such is the size that post merger SBI will become 45th largest bank in the world. The market opportunity before them is huge but still their revenues are not up to the mark. Let’s try to understand what is holding them from performing and what lies ahead.

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We have heard of averaging down a stock in case it’s price falls significantly below the initial buying price but do you average up your stock? If not, AI strongly recommends you to do it for your top bets.

Averaging up a stock is buying more shares in case stock price moves significantly above initial buying price.

As human beings, we are driven by emotions and tend to bother too much about stocks that are in loss as compared to the once which are in profit. It’s a very normal behavior for all of us but do we know exactly when to average down or average up? Mostly, its driven by our feeling of the day & amount of money in hand rather than based on solid logic. In this article, we will try to understand the benefits of averaging up which is specially important for long term small cap investors.