Updated Nifty Valuation Analyzer: PE, PE, Div Yield, ROE, EPS Growth Rate

‘Markets have touched an all-time high. should I invest now or wait?’ Why ask vague questions, to be met with equally vague answers? Partially eliminate the guesswork about the state of the market with this updated Nifty valuation analyzer. The previous edition had some major bugs, as pointed out by CFP Narayan Khatri, which have now been corrected.

Let us now look at where the Nifty stands.

read more ...

Retirement Planning – A Slide Show

Here is a set of slides on retirement planning intended for the investor workshops. I was able to discuss these at the Chennai meet but did not have time to do so at the Bangalore meet. I will not have time for these at the Mumbai meet or for the forthcoming Delhi meet either.  So here they are.

The aim is to convey the importance of retirement planning in a few slides to young earners.

1. Imagine how your monthly income will evolve in the future

read more ...

Automated Stock Analyzer – Discounted Cash Flow Valuation

The automated stock analyzer now includes discounted cash flow valuation. The analyzer now has four methods:

1) Price Multiple Model

2) Sustainable Growth Rate

3) Book Value Growth Rate

4) Discounted Cash Flow

First, I would like address a few issues faced by users while downloading stock price from MoneyControl.

Let me assure you that it works! It would take about a minute to finish as it retrieves data page by page.  If you get an error, it is probably because of the network settings of your workplace as pointed out by Abhijit Buchake. I get the same issue at my workplace but works fine at home.

read more ...

The Myth About ELSS Fund Lock-in

Many years ago, I found, in an exchange of comments in a blog,  a curious statement: ELSS funds have a lock-in period (of 3 years). Hence, the fund manager can operate without redemption pressure, resulting in better returns.  No evidence was provided to prove or disprove this statement  and I thought no further about it.

A few days ago, a video was posted in FB group, Asan Ideas of Wealth. It was a clip from a Tamil TV program on finance. A  financial adviser before suggesting funds to a caller, made the same statement as above (at ~ 8 mins):

read more ...

The Rate Cut in Perspective

RBI surprised everyone by announcing a 0.25% reduction in repo rate (from 8%) yesterday.  The market welcomed this news with a sharp rise. Several self-proclaimed long-term investors welcomed their  prospective notional gains as enthusiastically as they despaired at their notional losses when the markets ‘crashed’ a few days ago

Here is a perspective of ‘where we stand’ by a student of the bond market.

read more ...