Archive by Author Arjun Kulkarni-Team MoneyWorks4me
I’m an NRI. How should I Invest in Indian Stocks?

I’m an NRI. How should I Invest in Indian Stocks?

Over the past few months, the interest in the Indian stock market, especially among NRI’s, has picked up. After all, rupee has depreciated against all the major currencies in 2013. To attract foreign currency, RBI has deregulated interest rates on NRI deposits. In response to which, banks have raised NRI deposit rates. So, if you’re an NRI investor looking to invest in Indian stocks, having no clue about where to start, read on. But, before we proceed further, let’s have a clear understanding as to who is considered an NRI, according to the Foreign Exchange Management Act (FEMA) 1999. An individual is treated as a Resident in India in any previous year, if he/she was in India: for at least 182 days in that year or for at least 365 days during a period of 4 years, preceding that year and at least 60 days in that year. Any individual, […]

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Category:Learn
The Third Secret is Out: How to detect a Right Stock

The Third Secret is Out: How to detect a Right Stock

In previous articles of the series, we understood the role played by ‘Value Creation’ and certain key financial parameters in identifying the ‘Right Stock’. In this article, we will be looking at a qualitative factor which is a crucial ingredient in the Right Stock recipe – the quality and competence of the management team. Why is Management Quality and Competence important? Often, we hear instances, where seemingly good companies compromised the interests of the investors. If you are even faintly acquainted with the stock market, you have doubtlessly heard of the Enron scandal, which shocked the stock markets all across the world in 2001. Closer to home, our own stock markets were rocked when the Satyam Computers scam was unearthed in 2008. Events like these shake up the investor confidence and shareholders, who now, are increasingly alive to this problem. Hence, to avoid your returns from being compromised by management […]

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Category:Learn
The Second Secret Is Out: How to detect a Right Stock

The Second Secret Is Out: How to detect a Right Stock

In the first part of the series, ‘How to identify a right stock’, we spoke about the ‘Value Creation Index’, how it is calculated and why it holds so much importance in identifying a right stock, consequently leading to a good investment decision. Apart from VCI, there are various financial parameters, which come handy in gauging the financial strength of the company. This part of the series deals with a set of financial parameters that you must evaluate to know whether a stock is really ‘Right’ or not. Why are Financials so important? But, before we proceed, let’s try to find out why we need to look at financials at all. Financials have been and will continue to form the biggest chunk of a company’s evaluation as, all said and done, what makes or breaks any business is the bottom-line. That, in the end, is truly indicative of the company’s […]

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Category:Learn
The First Secret Is Out: How to detect a Right Stock

The First Secret Is Out: How to detect a Right Stock

For most investors, the ‘Right Stock’ remains an elusive mystery. We hear about it once in a while but are almost always unable to find it! What truly constitutes a ‘Right Stock’ and how do we find one amongst the thousands available in the Stock Market? Starting this week, we will be focusing on a series; the first being ‘How to Identify a Right Stock’. Value Creation: The first and foremost question to ask of a company you’re looking to invest in is – does it create value for me? From the investor’s perspective, ‘Value’ is created when the returns generated on the capital employed are higher than the cost of capital itself. After all, that’s what you want your investment to do. You want the returns from it to be higher than the costs you have incurred in investing in it. Likewise, you want the company, you invest in, […]

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Category:Learn
Invest to Achieve your ‘Big Hairy Audacious Goals’

Invest to Achieve your ‘Big Hairy Audacious Goals’

Think of your deepest, most improbable desire. In your heart of hearts, what is it that you want to have in life? Is it a beautiful bungalow in a posh locality? Is it that flashy car you saw in the latest movie? Or is it to retire at 40 and follow your passion? In fancy lingo, these are called BHAGs – Big Hairy Audacious Goals. These goals are often your heart’s wishes, but get consigned by your brain to the ‘improbable’ bucket, forever to be ignored. And without one eye on these BHAGs, you end up with a mid-sized flat in a somewhat good locality, a half-decent car, your kids in an average school and perennially compromising your dreams in favour of a running cash flow. But what, if I tell you that you don’t need to live like this? That the key to unlock your goals is sheer common-sense? […]

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