share market classes Archives

Smartly investing in InvITs

Posted on January 5, 2023January 5, 2023 by site_admin

In EMS stock market classes we look at many ways to diversify your Portfolio. INVIT is one such option. InvITs list on the stock exchanges to raise capital for the purchase of a portfolio of operational infrastructure assets that are already producing consistent cash flows. It is like a hybrid product―with equity and fixed-income characteristics

Infrastructure investment trusts, or InvITs, have been around for a while but many investors are still unaware of this option for investing that may very well replace some, if not all, of their debt investments with a little different flavour and a higher risk-reward ratio.

Should individual investors think about investing in InvITs? Before choosing to invest in this new asset class, let’s go through the basics.

InvITs look like mutual funds

InvITs, which function similarly to mutual funds (MFs), provide investors with units in exchange for their investments and allow for the pooling of capital from multiple investors, with specific management in charge of the assets.

The key distinction between an InvIT and an MF is that in the former, the funds are invested in infrastructure projects, while in the latter, the funds are in invested in diverse equity and debt instruments.

What types of infrastructure projects do InvITs invest in?

InvITs usually invest in roads and operating highways, besides power generation, distribution, and transmission units. InvITs may own and manage some of these assets. To put it simply, any infrastructure project ― as the name of the investment suggests ― is an option for an InvIT.

Why InvITs are less risky than direct infra stocks/MF schemes?

InvITs are matured, stable assets; the stage of conceptualisation and implementation of the infrastructure project would already be over before the InvIT scheme comes into action. InvITs aim to optimise the matured operations, and hence, render them safer than investment in direct infra stocks/MF schemes.

Let’s take an example. Let’s assume that a road has already been built, meaning that the said road project’s conceptualisation and execution phases are over. With the implementation risk eliminated, a significant safety net comes into play. Then we look at the number of vehicles currently using the road. With this data in hand, you can calculate the toll collection. These mature assets are listed on the company’s balance sheet.

You may also relate it to Real Estate Investment Trusts (REITs), where business operations start after a structure, for instance, a building project, is built. Learn about such new investment Ideas in ours classes. Located in Deccan Pune. EMS classes are one of the best rated classes on google, because we encourage students to build a wholesome portfolio.

Hard Facts and Truths About Investing

Posted on August 23, 2022August 23, 2022 by site_admin

1. A great Company may not give great returns. The gulf between a great company and a great investment can be extraordinary.

2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do.

3. There are tens of thousands of professional money managers. Statistically, a handful of them has been successful by pure chance.

4. During Recessions, Elections, and Reserve bank Policy Meetings, people become unshakably certain about things they know nothing about.

5. The more comfortable an investment feels, the more likely you are to be slaughtered.

6. Not a single person in the world knows what the market will do in the short run. End of the story.

7. The analyst who talks about his mistakes is the guy you want to listen to. Avoid the guy who doesn’t — he is much bigger.

8. There will be 7 to 10 recessions over the next 50 years. Don’t act surprised when they come.

9. Warren Buffett’s best returns were achieved when markets were much less competitive. It’s doubtful anyone will ever match his 50-year record.

10. Most of what is taught about investing in university is theoretical nonsense. There are very few rich professors.

11. The majority of market news is not only useless but also harmful to your financial health.

12. Professional investors have better information and faster computers than you do. You will never beat them in short-term trading. Don’t even try.

13. The decline of trading costs is one of the worst things to happen to investors, as it made frequent trading possible. High transaction costs used to cause people to think hard before they acted.

14. The phrase “double-dip recession” was mentioned 10.8 million times in 2010 and 2011, according to Google. It never came. There were virtually no mentions of “financial collapse” in 2006 and 2007. It did come.

15. The best investors in the world have more of an edge in psychology than in finance.

16. What markets do day to day is overwhelmingly driven by random chance. Ascribing explanations to short-term moves is like trying to explain lottery numbers.

17. If you have credit card debt and are thinking about investing in anything, stop. You will never beat 30% annual interest. Do not trade borrowing money on Credit cards. 18. The most boring companies — toothpaste, food, bolts — can make some of the best long-term investments. The most innovative, some of the worst. Visit our website for more information-http://sharemarketclasses.in

What is Mutual Fund and How Does It Work?

Posted on November 18, 2021November 18, 2021 by Pranav Lodh

What is a mutual fund and how it works? Okay, to put it in a very simple way, let’s take a very simple example, on this assume that I were to go from Pune to Mumbai. I have two options, assume I can take out my own car, I can ride on my own, I can drive on my own, I can enjoy because I know how to drive, I know what way I have to choose, I know what are the basic rules everything. Okay, so I’m a well-educated person as far as driving is concerned. so I can choose how to drive which way to go and how to go, over possibility number two I am not really keen on driving I just want to reach Mumbai, that’s it so what I can di is I can just hire a driver.

I hire a professional in short, he takes the decision on which road to choose and what speed to drive, where to stop, I keep all the decisions at his discretion, I just tell him the final destination. okay that’s exactly the difference between a stock market investment and a mutual fund investment, in the stock market investment you take your own decisions you know where you have to go how to go, you have expertise in that and you have the enthusiasm I may say to explore these things but if you the second category you’re really not bothered to explore things you better hire professional and he will make decisions for you that’s exactly what a mutual fund.

does so in simple words mutual funds means there is a mutual fund manager, who takes decisions on your own money which is invested with the mutual fund. okay so let us understand basically what a mutual fund does ok it will collect money from people like you and me. okay so assume that there is a pool of hundred people okay, and these hundred people given funds or contribute some money to a mutual fund. now this mutual fund is going to reinvest this money into different, different, investment opportunities like a mutual fund can invest in equity a mutual fund can invest in debt a mutual fund can invest in either or both.

okay, so that depends on the objective of the mutual fund scheme, okay so putting it in a very short you know nutshell I may say the mutual fund is nothing but a type of organization which would take money from people like you and me, would create a pool of funds and this pool of funds will be invested in different investments okay now what is the positive side for mutual fund now mutual fund which is invested in different avenues investment avenues mutual fund will earn income out of that okay now this income earned can be in the form of interest or it can be in the form of dividend okay it could be in the form of gain as well difference between costs price and selling price right so mutual fund okay they’ve got gains okay assume they’ve got hundreds of begins than what which one is going to do with that distribute this to the investors those who are invested in the mutual fund. do you think they want to distribute entire hundred rupees if they distribute hundred rupees are they mad just to do social service no they’re not want to do that so they are going to take some portion for their own purpose this is exactly known management expenses or people call this as an expense ratio this expense ratio could be typically 1% to 3% of your total investment amount. okay I hope you have understood how a mutual fund works in the most simplified manner.

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3 Best Stocks to Invest during Lockdown

Posted on November 12, 2021November 12, 2021 by Pranav Lodh

The first company is Reliance Industries. As you know this is one of the biggest companies in India.

1. Reliance Industries

LTP : 1218.75

52W L/H : 875.65 / 1617.55

5 Years : Up trend

P/E : 20.97

Industry PE : 14.49

P/B Ratio : 1.91

Revenue : Up trend

Profits : Up trend

Debt : High

There are a few stats. I have listed down on the screen for you to understand, why this is the most recommended one the last trading price of this is around 1200 rupees and 52-week high and low is about 875 to 1600 the five years trend the price of the stock has five years uptrend the p/e ratio is around twenty-one industry p/e is around fourteen. The price-book ratio is around one point nine one which is quite less and the revenue and profits, both have been consistently increasing over a period of time the debt is high that’s the only weak point but overall. If you see that this is the moment of the most recommended ones as it is the biggest company in India and it is available at a very good valuation right now during the lockdown.

2. HDFC Bank

LTP : 952.05

52W L/H : 738.75/ 1305.50

5 Years : Up trend

P/E : 20.21

Industry PE : 25.45

P/B Ratio : 3.40

Revenue : Up trend

Profits : Up trend

Debt : High

The second company which I recommend is HDFC Bank. HDFC Bank is now selling at around 9:25 the 52-week high and low of this is 738 – about one three zero five years. The share price has been consistently increasing the p/e ratio of this script is around 20 industry p/e is around 25, which is a good sign the price-book ratio is around 3.4, which is quite reasonable again revenue and profits, both are in up and since, this is a finance banking company obviously debt would be high. So, this is the second script which you can invest in for this log down period.

3. ITC

LTP : 185.25

52W L/H : 134.60/ 310

5 Years : consistent

P/E : 15.36

Industry PE : 17.59

P/B Ratio : 4.06

Revenue : Consistent

Profit : Up trend

Debt : Negligible

the third company which we can invest in this ITC ITC is into various types of industries and there are a lot of products which this company sells in popular brands and it is currently selling at around money defines the 52-week high and low is around 134 to 310 which shows the great chance of increase in profits five years. It has been consistently maintaining its price or it is slightly up in trend p/e ratio is around 15 industry is around 70 price-book ratio is around 4 which is again acceptable revenue has consistently maintained profits are in an uptrend over the several few years and debt is very less and this is again a strong signal as debt is very less in ITC.

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