Author: Shreenath Phadke
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Why is a balanced investment portfolio important ?
When it comes to investing, a balanced investment portfolio is crucial. A balanced investment portfolio ensures that you are not overly exposed to any one type of investment, which can lead to significant losses if the market conditions change. Have you seen how critical the judges are when a contestant on MasterChef India serves not-so-appetizing…
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How to analyse banking sector stocks listed on Indian stock market.
The banking sector is a crucial component of the Indian economy, playing a vital role in financial intermediation, credit allocation, and economic development. As a result, banking stocks have become a popular choice for investors seeking long-term capital appreciation and growth opportunities. However, analysing banking sector stocks requires a thorough understanding of the sector’s dynamics…
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Pick your next listed stock from a grocery store near you !
What is common between, India Gate basmati rice, Fortune cooking oil & Good Day biscuit ? Seems odd at first to look at 3 disparate brands & items together. However take a closer look and you will find that these are brands from companies listed in the Indian stock market. India Gate Basmati Rice –…
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How many stocks should an investor have in the portfolio ?
The number of stocks to have in a portfolio depends on several factors, including time horizon, risk appetite, diversification, and the investor’s knowledge, skills, and resources to manage their investments. While portfolio size depends on the appetite of the investor, studies suggest that owning between 8 to 15 stocks is an ideal range for most…
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How to understand stock market direction ?
Market direction is often guided by market structure. Market structure is a concept that is important for traders to understand as it can influence the liquidity and price action of a market. It is the simplest form of price movement in the market and is used to identify overall market conditions. Market structure is also…
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How to create a long-term growth portfolio ?
Investing in a long-term growth portfolio is a great way to accumulate wealth over time.You also need to clearly divide your financial goals into long, medium & short term. Doing so will give you an idea about the time you have in your hand to achieve the goals. Two of the major considerations to build…
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Top-down or bottom-up approach to investing ?
What do you think is the most sought after ride in any amusement park ? Merry-go-round ? Bumper cars ? Ferris Wheel ? Nope. Like they say investing is like riding a roller coaster, it’s the roller coaster that is the most popular ride in amusement parks. While you ride the investment roller coaster, you…
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7 things to look at while you analyse a stock to invest
Analyse a stock thoroughly before before investing. As consumers how much time do we take to make a buying decision, say for a mobile phone ? It’s approximately 15-30 days after we receive a ‘tip’ about the said product. The tip could be an ad, or a friend’s recommendation or any such information that gets…
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5 mistakes in stock market that investors should avoid.
Stock market investors make many mistakes in the stock market. Like in chemistry experiments choosing a wrong catalyst can lead to a disaster in the lab, similarly making certain mistakes will have disastrous implications on your portfolio and capital. Very often we have seen people waver between greed & caution so fast that they fail…
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How should retail investors use ROE analysis in stock investing ?
Investors, when analyzing stocks, should look at ROE analysis ( Return on Equity) as a key metric. ROE measures how well a company’s managers are growing profit as a percentage of the company’s overall net assets. It is calculated by dividing net income by shareholders’ equity. ROE = (Net Income / Shareholders’ Equity) x 100…