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Is it possible to create an investment which pays me for lifelong & beyond?  This is a question every investor must have asked himself at some point in time. What if you are told that it is very much possible. There is solid mathematical certainty behind it. Last 30 years of market statistics are also supporting us. You can create such investment & enjoy lifelong earnings. The best part, you can even pass this to future generations as your legacy.

Next question will be why it is not known till date? Well, everyone who has a basic understanding of equities, knows but not realizes because of certain predispositions of financial industry. I highly encourage you to read this article entirely. This can be one of the life changing articles, you will ever come across on Internet.

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.

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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.

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!

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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.

2017, has been a good year for Indian stock market so far and sensex has already crossed mount 30k. It has been the same story for most emerging markets across the world. We saw good gains in rural, real estate & FMGC sectors while automobiles, pharma & IT remained sluggish.

The big question in everyone’s mind is how far this rally is going to continue & what sectors to invest now.

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This is an economic story of a middle class person in India (perhaps across the world). He (no offence ladies) earns day & night, gets food, pays bills and save a little in the bank. He continues this for many many years after all he has been told by parents to work hard & live an honest life. But after many years, he realizes that after so much efforts, he is just able to meet ends and a little bit of savings here and there. He is never sure if he is financially independent or not. But wait, what went wrong here? I did what everyone else is doing and as hard as it gets.

Well, the answer lies in our “not so perfect” education system. We are taught Moral Science, History, Chemistry & what not (trigonometry yikes!!). Alas, no one teaches us the concept of Money, how it gets created or recycled but every time ends up in the hands of rich people (Confession: I have read Rich Dad Poor Dad). Money Management is a mandatory skill for everyone but for some strange reasons, only Commerce students get it. Coming back to this article, how to get ahead of this rat-race & create a little bit for ourselves is essential.

It can take a whole day to explain but then picture says thousand words, I don’t have any animation today but have a table which represents events during an imaginary football match between You and Rest of Economy. Wear your specs, over to the table.

This is a key question in every small cap investor’s mind. How to identify a multibagger early & hold on for outsized returns? It’s easier said than done!

But AI believes, it can be done if we learn how to evaluate a small cap stock with a robust & ever-evolving process. The key characteristics to look out in a small cap stock is quite different from large caps. We, at AI, have an applied process in place to identify next multibaggers. With it, we are sure that we are gonna hit bull’s eye more than often.

Below are key pillars of our process while searching for a multibagger. Of course, you can outsource this to us by subscribing to our service (click here) but we also encourage our readers to slowly ingrain the concepts of small cap investing. It will be very good on a long run & you will know what you are heading towards.