Stocks Gurukul

How to build your portfolio? Disclaimer: This article is purely for educational purposes and in no way be considered a recommendation in any form.   While you have insured yourself against any unforeseen circumstances, and have inculcated the habit of saving money every month by avoiding discretionary expenses and learned compounding, you are now ready to build your portfolio. In case you have not gone through the previous articles, I will request you to go through them before reading the current one. ( https://stocksgurukul.blogspot.com ) A portfolio is nothing but, a group of financial assets. If you take my example, I am holding my funds in Bonds, Debentures, Equities, Gold, etc. So, the question here is why am I diversifying and putting my money in different assets? The simple answer is to diversify the risk.  Take an example of Stock Market Crash in 2008 (although it recovered later), if someone would have invested 100% of their money in equities, th...

Uninsured and Breadwinner? Don’t live with a time bomb on your head. In the previous article, we understood the power of compounding and the power of money and how to inculcate a habit of saving money. If you have not gone through that article, here is the link I hope you got yourself acquainted with the necessity of saving and investing to achieve financial independence. However merely knowing about the destination is not enough for you to sail your boat directly into the ocean. For it, you need safety equipment, the knowledge of wind direction and much more. Similarly, before investing your hard-earned money into a return generating asset, you need to understand the hurdles you might face during the journey. I assume all of you have a general idea of what insurance is and why is it necessary. I will take the liberty to skip the explanation and will directly come to a case study . Mr. X is working in an MNC and lives with his spouse and two daughters, six and nine ...

Power of Compounding & How to Save More... In this article, I will share with you some common principles to begin in the stock market or anywhere else. They are the power of compounding and how to save more by understanding the power of Money. Setting the foundations right is a must before starting your journey. I will start with a quote by Steve Jobs: “Deciding what not to do is as important as deciding what to do.” The reason why I shared this quote is that many times we spend money on things we don't need or on things which are merely bought to impress others. In order to imbibe the habit of savings, let us understand the power of compounding and the power of money. I will try my best to be simple in my language and concepts. Let us say, you invest 1000/- in a stock which gives you a decent return of 10% (although many quality stocks give you 15-20% return in the long term). So, by investing 1000/- in a stock with a 10% annual return, you get 1610/- after ...

What is Market Capitalisation and how to classify all the listed companies based on it? If you are just beginning in the market and have heard some jargons like Large cap, Mid cap, Small cap and market capitalization (M-cap) and get confused, then the concept of Market Capitalization is very important for you to understand. I will try to keep it short and crisp… :) In this Article, we will understand a very important parameter used to classify all listed companies in any market be it India, USA, China, Japan and so on. That parameter is Market Capitalisation. Let's look at what it means and how it simplifies our understanding of various concepts such as risk associated with a stock. Understanding M-cap is mandatory for you to get what these Mutual Funds, DIIs, FPIs are talking about... Market Capitalization:  Let us take an example. Suppose a company X needs 100 crores capital to start a business and it decides to raise money by issuing shares. Let us assume, it d...

Introduction These days people are getting attracted to equities and other related instruments viz Mutual Funds, ETFs, etc. However, multiple factors are held responsible for under penetration of Indian Stock Markets viz, Various Scams in the past - Harshad Mehta Scam, Ketan Parekh Scam  Perception of equating SM with Gambling Low Risk-taking culture in our nation Lack of financial knowledge base Fear of Losing your hard-earned money (FOLO) Volatile nature of Returns Fixed Income schemes being more popular with guaranteed returns And much more…. In India, only 2.5% of the population has exposure to the financial markets ( Source: FE ) whereas the percentage is as high as 90 in developed economies. Here in this article, we will look at how to get started in equity and how to buy your first stock. However, what to buy and when to buy, what all research is to be carried out will be discussed in a separate series based on your queries and my general understanding o...