Nifty 50 from 1,000 to 10,000: Lessons from the rocky road

Yesterday (26th July 2017), the Nifty 50 closed above 10,000 for the first time. In this post, let us discuss what we can learn from its journey from 1,000 to 10,000. This post is inspired by a comment from Ravikiran Suryanarayana: “How many of you noticed that it took 7 long years for Nifty to scale from 6000 to 7000?” made in a thread that displayed Nifty 1000 point milestones.

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First, let us look at every 1000 point milestone from 1000 to 10,000.
The Sensex staircase is clearly visible here. If you see an “infographic” that just states the date on which the index hit a + 1000 landmark, it can be quite misleading about the reward associated. As Ravikiran so succinctly pointed out, time matters! read more

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Resources: How To Screen & Identify Good Stocks

Here is a short compilation of step by step guides and tools to screen stocks and identify financially sound and good businesses.

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1: A guest post by the mature and level-headed Krishna Kishore: A Guide to Understanding Stock Screeners Krishna is a regular speaker at the Bangalore DIY investor meets.

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2: A guest post by the erudite Indraneal Balasubramanian:  How to Build a Stock Screener. Indraneal spoke at the Mumbai DIY meet last year and impressed everyone with his rigour. read more

Are you an Amazon Customer or an Amazon Delivery Guy?

Shall we try out the following experiment? Pick a fund that you invest in. Say Quantum Long Term Equity or PPFAS LTVF or HDFC Balanced. Enter all the transactions in that fund(s) in a portfolio tracker. Then add a couple of index mutual funds like Franklin Nifty Fund or ICICI Nifty Next 50 fund. Use the same transaction dates and if you wish the same amounts for the index funds.

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If you invest further in any of your funds, you add the same amount on the same date as a transaction entry in the index funds. If you redeem, you redeem from the index funds. Suppose you keep this up for 5Y, Maybe 7Y, 10Y or even 15Y. read more

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Why Do Stock Markets Crash?

Between Jan 21st, 2008 and July 6th, 2009, the Sensex witnessed 11 single-day falls of 700+ points. The highest was 1,408.35 points on Jan 21st. In this post, I discuss the simple arguments put forth by Edgar E Peters to understand why such stock market crashes occur, in his book, Fractal Market Analysis.

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#AmazonGreatIndianSale
Kindle version of You Can Be Rich Too NOW only Rs. 87 Grab it now! http://amzn.to/2gJuirE read more

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Five Books That Will Redefine Your Understanding of Stock Markets

Here are five unique books that will will completely change the way you think about stock market risk and reward. They have certainly shaped mine and my first ever financial calculator was based on one of them. The books will bust established myths about the market – its so-called efficiency, mean reversion, and the way we measure risk and reward – not with opinions, but with data.

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1 Unveiling The Retirement Myth – Jim Otar

Tag line: Advanced Retirement Planning Based On Market History read more

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