Short term financial position – analysis of working capital
In order to meet immediate obligations as they arise in the regular course of business, companies often rely on short term finance (i.e. loans and credit facilities that must be repaid in less than 1 year). The short term liabilities for a business consist of items such as accounts payable, taxes, utilities payable and other accrued expenses. In […]
Best Savings Bank Account in India
Last week, I met someone who wanted to discuss investment options with me. While I don’t do consulting of this nature, he happened to be in my distant family. Fair enough. I went in wondering if he will ask me about stock investments or may be some complex derivative products, indeed if I could help […]
Instruments of Monetary Policy in India
Part – II of – Basic economic terms used in India . Gross Domestic Product (GDP): National output or GDP is the most important concept of macroeconomics. When GDP increases, it is a sign that the economy is getting stronger. While a reduction in the GDP indicates a state of weakening economy. How is GDP really calculated? […]
Future Prospects of Indian Economy
India’s population today is 1.237 billion and growing at 1.3% every year. This makes India the second most populated country in the world with China leading the charts with a population of 1.35 billion. According to the most recent census survey, India occupies 17 % of the world’s population and 65 % of these people […]
Fixed deposits in India – Best safe investment option for the future?
There Seems to be an amazing rush to grow money by investing in Fixed Deposits (FD) and other fixed income schemes. Someone recently asked me about the best safe investment option for the future and after some discussion I realized what he really wanted to know was the safest scheme within the sphere of fixed deposits in India. That […]
Best Stocks for Medium Term Investment in India – Educated Speculation
Market participants and financial media regularly classify stock purchase decisions based on the time horizon or holding period of the investor (i.e. how long can the investor do away with his money and put it in stocks). This classification is usually styled as long term, medium term and short term. There are absolutely no fixed rules as to […]
Top Line and Bottom Line Profitability
Often analysts and proprietors get into the top line and bottom line profitability growth figures. What are they talking about? To understand this, refer to any financial statement, for example — Ashok Leyland Top line refers to gross sales or total income from operations generated by the company in a given period (i.e. this is the first line item […]
Blue Chip vs. Growth Stock–Difference is Subtle
In recent times the talk of growth stocks has almost taken over the whole idea of value. What differentiates them from value stocks? Very briefly — as the name suggests, growth stocks are shares of companies whose earnings are expected to grow at a rate higher than the market rate. Value stocks on the other hand are the ones […]
Learn About Stock Market Basics — Indian Stock Market
I think it is extraordinary that I meet so many people who are absolutely, and 100% convinced that they cannot understand finance or how to invest in the Indian stock market. Their reason oftentimes is that it is extremely dry, or it will be too difficult for them to understand. I am not sure how many […]
Best Systematic Investment Plans in India-Start on Your Own
When it comes to financial products, I often sound like a doomsday conspirator. Some of the things I have written in past: Mutual funds are ‘mostly’ pointless; F&O trading – that too based on software, charts, tips and tools, my friend – it’s like trying to reach supersonic speeds in your money losing efforts; Stock brokers don’t want you […]