In this blog post we will discuss the importance of gross profit margin in fundamental analysis of stock valuation for investment. Before we delve into gross profit margin, let us discuss the importance of fundamental analysis in equity...Read More

The Federal Open Market Committee (FOMC), a branch of the US Federal Reserve Board that decides US monetary policy, meets eight times every year at intervals of 5 to 8 weeks. Investors in capital markets all over the world, including...Read More

If you follow the stock market during the earnings season, you will see that the headline numbers are usually the revenue and earnings (EPS) growth. In our post, Importance of EPS in Equity Investing, we had discussed that, the quality of EPS...Read More

If you look at long term performance of different mutual fund schemes, you will see that some schemes outperformed others in the same category by a big margin. In the short term, performance gap can be explained by market driven factors...Read More

Though derivative trading in India was introduced more than 15 years back, most retail investors perceive derivatives as something very risky. While derivatives can be risky, they can also be used effectively as a portfolio hedging tool...Read More

In the first part of the article, we discussed what Return on Capital Employed (ROCE) is and why it is important for stock selection. In the second and concluding part we will discuss the analytical framework of cost of equity and how the Capital...Read More

I have often heard my friends saying something like “a particular stock is a buy at 1200 and expensive at 1800”. I am sure many of you would have heard your friends and colleagues making similar statements. I get a sense that, many retail equity...Read More

In part 1 of this blog post, Bull and Bear Market Investing: Part 1, we had discussed that, if investors have long investment horizon, then they do not need to worry about timing the market. Even if investors get their timing horribly wrong, they can...Read More

Making money in stock markets, from conceptual viewpoint, is quite easy; you buy low and sell high. In bull markets prices are high and in bear markets prices are low. Therefore, ideally, you should be selling in bull markets and buying in bear...Read More

Asset allocation is simply your investment strategy where you balance the risk and return by investing in the appropriate mix of assets (like fixed income, equity, gold, real estate etc.) according to your investment objectives, investment horizon and...Read More