How to follow Stock Market? Basics for Beginners!

When a newbie enters the stock market, one of the first questions that come to their mind is How to follow stock Market? Here, by following the stock market, we mean how to know the share prices of the Indian companies, market index, or the most basic paraments of the market.

For seasoned investors, it’s easier to follow the stock market as they have been doing it for years. They already know lots of websites or apps to track and follow stocks or indexes. However, for beginners, they might get easily confused about how to follow stock market, and may even feel silly asking this basic question to a mature investor.

If you’re one such stock market beginner, do not worry. We have got you covered. In this post, we going to exactly teach you how to follow stock market. These few simple tricks about following the stock market and its trends, which once known, even a beginner can follow the market like a pro.

Please note that although this post about ‘how to follow stock market’ is basically targeted for beginners, however, intermediate and advanced level investors can also get benefits from this article. Do read it till the end to get the maximum benefits. Also, there is a bonus tip for the readers in the last section. Let’s get started.

How to follow Stock Market?

Here are a few of the simple yet powerful websites from where you can follow stock market.  Below, we have also described how to easily navigate and use these sites efficiently. Here it goes:

1. Google Search

Google is the first and easiest source to follow a stock. Just type the name of the stock and google will give you all the details about that stock. For example, if you want to follow the stock of Tata Motors and want to know its, just type ‘Tata motors share price’ on google. The result will be like this:

tata motors share price nov 2020

Please note that here you have to type “Company name + Share” or “Company name + Stock” to get the stock details.

Further, On Google, you can track the share price movement of the stock for a given period of 1 day, 5day, 1 month, 1 year, 5 years or max, by simply clicking on different tabs. For example, if you click on ‘1 month’ in the tab, you can see the price movement of that stock for the last 1 month i.e. how the share price moved in the last 30 days to date.

The best part is that the simplicity of google makes it best for beginners to start following the market. The only disadvantage of tracking stock market prices on Google is that you have to type the names of different stocks every time when you want to track that stocks. If you have many stocks to track, say more than 10 (Ex Reliance, Tata Steel, HPCL, ONGC, BPCL, Titan, Infosys…..) then it will become a hectic job for you as you have to type the stock name over and over again. Here a shortcut is “Following” the stock or creating a watchlist.

Nevertheless, Google is the first place for all the beginners where they can learn how to follow the stock market. Therefore, you should also get used to it. Try googling the stock price of a few stocks and indexes on google on your own now.

Exercise: Type “Nifty50” on google and see what appears.

Further, also try different stocks that you are interested in. This is the first step to learn how to follow stock market. In case, you do not remember much names, here is a list of few major stocks in NIFTY50 that you can search:

 NameIndustryWeight
1.Reliance Industries Ltd.Energy - Oil & Gas10.77%
2.HDFC Bank Ltd.Banking10.66%
3.Infosys Ltd.Information Technology7.42%
4.Housing Development Finance Corporation Ltd.Financial Services7.29%
5.ICICI Bank Ltd.Banking6.59%
6.Tata Consultancy Services Ltd.Information Technology4.86%
7.Kotak Mahindra Bank Ltd.Banking4.16%
8.Hindustan Unilever Ltd.Consumer Goods3.04%
9.AXIS Bank Ltd.Banking2.87%
10ITC Ltd.Consumer Goods2.84%
11.Larsen & Toubro Ltd.Construction2.78%
12.State Bank of India Banking2.39%
13.Bajaj Finance Ltd.Financial Services2.23%
14.Bharti Airtel Ltd.Telecommunication2.13%
15.Asian Paints Ltd.Consumer Goods1.64%
16.HCL Technologies Ltd.Information Technology1.58%
17.Maruti Suzuki India Ltd.Automobile1.46%
18.Mahindra & Mahindra Ltd.Automobile1.23%
19.UltraTech Cement Ltd.Cement1.13%
20.Sun Pharmaceutical Industries Ltd.Pharmaceuticals1.03%
21.Wipro Ltd.Information Technology0.97%
22.IndusInd Bank Ltd.Banking0.96%
23.Titan Company Ltd.Consumer Goods0.94%
24Bajaj Finserv Ltd.Financial Services0.93%
25.Nestle India Ltd.Consumer Goods0.92%
26.Tata Motors Ltd.Automobile0.92%
27.Tech Mahindra Ltd.Information Technology0.91%
28.HDFC Life Insurance Co. Ltd.Insurance0.88%
29.Power Grid Corporation of India Ltd.Energy - Power0.88%
30.Dr. Reddy’s Laboratories Ltd.Pharmaceuticals0.86%
31.Tata Steel Ltd.Metals0.86%
32.NTPC Ltd.Energy - Power0.83%
33.Bajaj Auto Ltd.Automobile0.79%
34.Adani Port and Special Economic ZoneInfrastructure0.79%
35.Hindalco Industries Ltd.Metals0.79%
36.Grasim Industries Ltd.Cement0.74%
37.Divi’s Laboratories Ltd.Pharmaceuticals0.68%
38.Hero MotoCorp Ltd.Automobile0.67%
39.Oil & Natural Gas Corporation Ltd.Energy - Oil & Gas0.65%
40.Cipla Ltd.Pharmaceuticals0.64%
41.Britannia Industries Ltd.Consumer Goods0.63%
42.JSW Steel Ltd.Metals0.61%
43.Bharat Petroleum Corp. Ltd.Energy - Oil & Gas0.58%
44.Eicher Motors Ltd. Automobile0.56%
45.Shree Cement Ltd.Cement0.56%
46.SBI Life Insurance Co.Insurance0.54%
47.Coal India Ltd.Energy & Mining0.51%
48.UPL Ltd. Chemicals0.49%
49.GAIL (India) Ltd.Energy - Oil & Gas0.42%
50.Indian Oil Corporation Ltd.Energy - Oil & Gas0.40%

NOTE: Do not search Facebook, Google, Apple’s stock price. Although you can find the share details of these companies, but the stock prices will be shown in dollars on Google. This is because these are foreign stocks and listed in foreign stock exchanges, not India. They trade in foreign currency.

Only Indian companies are listed on Indian Stock Exchanges. Therefore, companies like Apple, Facebook, Samsung, etc that are not Indian companies can’t be traded in India. They are listed on their respective country’s stock exchange. For example- Facebook on New York Stock Exchange (NYSE), Samsung on South Korea Exchange, etc.

2. Trade Brains Portal

First of all, if you are confused about where to get started, you can start by visiting the ALL STOCKS page at Trade Brains Portal. Here, you’ll get the list of all the +5,000 publically listed companies in India and also their industry. You can start researching on this page to at least know Indian stocks and what stock investment options are available to you.

Next, you can make a watchlist of stocks on Trade Brains Portal. This means that you can save stocks in your own created list for tracking their price movements and also you can set a target price. Let’s say you add 10 stocks to your watchlist. Now, you just have to go to your watchlist whenever you want to follow the stocks or market.

(Image: Watchlist of Trade Brains Portal)

Trade Brains Portal – How to use for Stock Research?

3. Moneycontrol

Moneycontrol is probably the oldest and most popular website in India if you want to learn how to follow stock market. The website gives you all the info you want to know about a stock along with the latest financial news.  In addition, moneycontrol also offers a mobile app, which is in fact even better than the website. You can download the app and easily follow the market using it.

On the website or app, enter the stock name on the top search box and you will get all the details that you wish to see. You can read this article if you wish to know more about moneycontrol features:

Money Control App – Best hacks for Beginners

4. Screener.in

screener website

Screener.in is another of the powerful financial website for fundamental analysis of stocks. One of the good features of this site is that the last 10 Years’ financial reports of all the Indian companies are available here.

In addition, you can also download data from this website in excel form. Further, you can add stocks to your Wishlist to get notifications in your mail the alerts if there is any corporate action on the stocks in your Wishlist. Therefore, you can easily stay updated with the latest news like quarterly results, dividend dates, etc once you log in to the site and add the stock names to your Wishlist.

5. Yahoo Finance

Yahoo Finance and Google Finance are the most searched finances website for stock market analysis. This website is very resourceful to learn how to follow stock market and contains massive data of stocks along with the latest news and other powerful tools. Yahoo Finance is very friendly and you will get all the major information which you want to learn about the stock here.

Summary

In this post, we tried to cover e major sources on how to follow stock market. Surely, there are many other websites too that can be used if you want to keep up-to-date with the market trends. However, for beginners, we recommend you to first familiarize yourself with these websites and get used to how to get the stock information from these sites. Definitely, these websites will give you all the information that you want to learn about the stock market. Do check them out.

Here is a summary of links to all the financial websites discussed in this post for your ease.

  1. Google: http://www.google.com
  2. Money control: http://www.moneycontrol.com
  3. Screener: https://www.screener.in
  4. Economic Times market: http://economictimes.indiatimes.com/markets
  5. Yahoo Finance: https://in.finance.yahoo.com

That’s all for this post. If you think we missed any big website that needs to be mentioned in our post on how to follow stock market, please comment below. We will be happy to get feedback. Have a great day and happy investing!

Rupee Cost Average meaning concept

Rupee Cost Average – Why it’s essential while Investing?

An overview of the Rupee Cost Average Approach: One of the basic strategies to succeed in the stock markets is to buy more when the prices are low. However, this involves in-depth knowledge to judge shares that are underpriced and perfect purchase timing. Today we try and look for answers in Rupee Cost Average (RCA) to reduce our losses from overpriced securities and make success in the long run.

What is Rupee Cost Average (RCA)?

Basically, Rupee Cost Average is an investment technique of buying a fixed amount of a particular investment consistently on a regular schedule over a long period of time, regardless of price. The Rupee Cost Averaging approach results in the average cost of the investment being lower in comparison to a single lump sum transaction.

RCA Relation with SIP

SIP (Systematic Investment Plan) allows an individual to invest in a fund, a predetermined amount at regular intervals. If we look at the above explanation of RCA we realize that a SIP allows us to buy fixed amounts in a fund on a regular schedule regardless of the price of the unit in the fund. Hence SIP helps an investor apply the RCA method and reap its benefits provided he/she indulges in the SIP for a long period of time.  

Example to Understand Rupee Cost Average in SIP

Say for example we have Rs 4000 and decide to invest in an Index fund that tracks with the Sensex. As of January 1st, you have 2 options i.e to either invest in a lump sum or to invest by means of a SIP. 

— Scenario 1: You Invest in a lump sum on January 1, 2020

DateAmount InvestedNAVUnitsSENSEX
01/01/20204000413.06029.683841,306.02

— Scenario 2: You decide to follow a SIP (with a decision to do so even after the amount is exhausted)

DateAmount InvestedÊNAVUnitsSENSEX
01/01/201000413.06022.420941,306.02
01/02/201000397.35532.516639,735.53
02/03/201000381.44022.621638,144.02
04/01/201000282.65313.357938,265.31
Total4000(Avg) 360.452211.0971

The difference we should note in the two scenarios above are :

– Breakeven 

In scenario one to make a profit the NAV per unit would have to rise above Rs 413.0602. In Scenario 2 if we are to observe the average cost on Investment would be lower.

Average cost = Amount Invested/ Units Received i.e. = 4000/11.0971 => Rs 360.45229.

Hence the breakeven is lower in the second case while investing through the SIP route.

— Units Received

If the units received are compared it becomes apparent the more units are received in Scenario 2. In RCA more securities are purchased when prices are low and fewer securities are bought when prices are high. This allows any losses that were made during a purchase made when the prices are high to be balanced off when the prices are reduced.

Also read: SIP or Lump sum – Which one is better?

RCA and Investor Psychology  

Generally, when we find products available at reduced costs we make sure we take advantage of the situation even if it resorts to hoarding. When it comes to stocks of a company, however, it is noticed that investors react differently.

Unfortunately, healthy companies with strong financials are also exposed to market falls. In such situations, investors panic and sell their shares invested in the company. Nonetheless, an investor with good financials observes the financials of the company, and if it looks good, he views the situation as an opportunity. He takes advantage of the situation and gains more shares.

Rupee cost average investor psychology

However, it is observed that many market participants follow basic human instincts. They do this to protect their capital from further reduction. What RCA does is protect us from our own psychology. When we indulge in RCA through a SIP we keep investing regardless of the price. When the market falls and even when the market rises. Hence if followed we reap the benefits of RCA in the long term.

Also read: 5 Common Behavioral Biases That Every Investor Should Know

RCA after a market crash

The Dow Jones market as on 03/09/1929 closed at $383. The Great Depression followed and devastated the US economy.  The US stock market then took over 25 years to reach levels it stood at before The Great Depression. On 23/11/1954 the Dow Jones closed at $385. This would mean an investor would gain only $2 ( per $385) over a period of 26 years if he invested in 1929.

the power of dollar cost averaging

However, if an investor invested using DCA( Dollar Cost Average in the US) $10000 every year, the $260,000 investments over 25 years would be worth $1.5 million as of 11/23/1954.

This is because by spreading the investments even to periods when the markets were low the investor would benefit by not only making up for the loss incurred when the markets were high but also make larger profits when the markets normalize.

Closing thoughts

The Rupee Cost Average investment strategy definitely safeguards an investor from market bubbles. Unlike other investment strategies, applying RCA doesn’t involve complex strategy and does not even require daily market tracking. This makes it easier for any individual to engage and take advantage of the market. RCA, however, does not shed light on the right time to sell.

In the current situation of ‘The Great Lockdown, we can notice that the Sensex has fallen from the all-time high of January. But if an investor understands RCA applies accordingly, he would be able to profit greater once the market normalizes.

what is factor investing meaning concept more

Factor Investing – How does it work? (Meaning, Insights & More)

Overview into Factor Investing: The selection of players in a cricket team based solely on talented batsmen and bowlers is an outdated criterion. The Indian cricket team too learned it the hard way in the 2000s. This was followed by the veteran rotation on Dhoni’s arrival as captain. The Indian cricket team today has a number of stats looked into to form a selection strategy. These include fitness levels, susceptibility to injury, player image, etc. The 2008 crisis due to bond market failure similarly made investors realize that simple diversification of a portfolio based on asset classes wasn’t enough. This gave rise to an investment strategy called Factor Investing.

What is Factor Investing?

Factor investing is a completely different way of looking at diversification. It is built on Eugene Fama and Kenneth French’s work. Fana termed it highly difficult for even professional investors to exceed market performance. According to him, it would be better to invest in a broadly composed portfolio of stock instead of engaging in futile stock-picking efforts.

American Economists Eugene Fama and Kenneth French, known for the five-factor model

(American Economists Eugene Fama and Kenneth French, known for the five-factor model)

Researchers noticed that throughout history stocks with particular factors in play were able to perform better. As research emerged certain factors stood out and were applied to a portfolio in order to create an Alpha.

What is an Alpha?

In simple words, the over and above performance of a fund over a benchmark for a long period of time it is said to be an Alpha (α). Say the Sensex rises at 15% in a year and your respective portfolio at 18%. Then the additional 3% is known as Alpha. However, Alpha’s are known as imaginary creatures of the market world. This is because no funds have been able to beat the markets consistently for a long period of time ( Not just 1-3 years).

Factors involved in factor investing

The following factors are widely used and regarded to have added to the Alpha.

1. Beta ( β)

Yes. We do require the Beta in our search for the Alpha. Beta here represents the risk. The Beta of a stock is arrived at after observing how volatile and sensitive the stocks are. Regression analysis is used to arrive at Beta.

Here is a non-quantitative method we may use to arrive at the estimate of the Beta. Firstly, plot the market movement on a graph for a  particular period. Then plot the market movement of the security in question

Case 1: If the security pretty much tracks the market then β = 1.Case 1: If the security pretty much tracks the market then β = 1

Case 2: If the security is more volatile than the market then β >1.

Case 2: If the security is more volatile than the market then β >1 Case 3: If the security has lesser volatility than the market then β < 1.  Case 3: If the security has lesser volatility than the market then β < 1 

Factor Investing does take on considerable risk. It considers that the greater risk the portfolio involves itself in the greater is the return. If we assume that the Beta of the portfolio is 1.5. Then if the market moves upwards by 10% it would lead to the portfolio rising up by 15%. However, if instead, the market moves downwards by 20%, the portfolio will fall by 30%

2. Size

Unlike the conventional approach, this approach requires investing in small-cap stocks. If we are to look at it with an open mind it would make sense as small-cap stocks would have a greater possibility of making leaps in growth when compared to their small value. Larger cap stocks although rock-solid to weather a market storm would have slower growth rates. As per CRSP data from 1927 to 2015 small-cap stocks would provide 3.3% higher returns than large-cap companies.

3. Value

According to this factor, a less expensive stock would prove more beneficial than a stock that is more expensive. It encourages investing in undervalued stocks. This approach works theoretically as investing in companies whose prices may fall but their strong fundamentals remain the same would prove more beneficial.

This is in comparison to investing in companies that have rising prices but with the same fundamentals. The inflated security would be adjusted during a market correction but one with strong fundamentals would still prove beneficial. As per CRSP if stocks with incorrect prices are bought then the difference in returns as per data from 1927 to 2015 would be 4.8% per year.

4. Momentum

This factor requires including stocks that have had an upward momentum in the portfolio. It requires a ranking of stocks based on 12 months trajectory and excluding the latest month. As per data compiled by CRSP from 1927 to 2015, the top 30% of stocks with upward momentum would provide 9.6% additional returns in comparison to the stocks from the bottom 30% that may have had a downward trajectory.

5. Quality and Profitability

According to this factor, a high-quality stock with high profitability would generate excess returns. As per ‘ A Complete Guide to Factor-Based Investing’ high-quality companies have the following traits: low earning volatility, high margins, high asset turnover, low financial leverage, low operating leverage, and low stock-specific risk. 

As per data compiled by CRSP from 1927 to 2015,  the stocks forming the top 30% of Gross Profitability gave 3.1% higher returns than those of the bottom 30%.

Also read: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?

How were these factors identified?

For a factor to be considered, it is necessary that it satisfies the following tests.

— Persistence

According to this, it is necessary that the factors will show up through time and are not limited to  a specific time period

— Pervasive

The factor must hold true across various regions countries and sectors

— Robust

The factor must not change if you change how the characteristics are defined and must be robust to specification.

— Investible and Sensible

The factor must be sensible and add value. Further, they must be investible if it is to be bought into the portfolio.

Results of Factor Investing

Historically one of the most prevalent investment strategies has been Active Investment. In Active Investment, a fund manager along with his team of analysts strategizes and analyses individual stocks to beat the market. In Active Investment the skill of the investment manager enables a fund to perform better than the market. The operations of the fund involves hedging and a lot of buying and selling activity takes place.

Another form of investing is Passive Investing. Here the portfolio tracks the market. In Passive Investing the investors are in for the long haul. The buying and selling that takes place are lower than those compared to Active investing. The expenses are significantly lower in comparison as Passive Investment uses programmed computers in place of fund managers.

Factor Investing can come into play by combining the Active Investment strategy and the Passive Investment Strategy. The Active Investment strategy can be used to acquire a portfolio apt with the factors and this can be programmed into a computer. The software will be able to replicate the strategy and at the same time analyze swaths of stocks. Factor Investing, if done right, results in a highly diversified portfolio. This further alleviates the risk faced through stock picking and enhances the portfolio with factors.

The following graphs depict the factor portfolio’s outperforming the market.

Securities based on different factors performing against the Russell 100

( Source: Securities based on different factors performing against the Russell 100)

Securities based on different factors performing against the Russell 100

Portfolio Diversification

When creating a portfolio it is not necessary that the focus is on one or a limited number of factors. The portfolio should be diversified to include all the factors. This is because factor investing does not involve timing investments for certain factors and doesn’t have investment periods for different factors. Also, it is uncertain when the investments based on individual factors would start enhancing the portfolio. Hence diversifying the portfolio with the factors is beneficial.

Why isn’t Factor Investing popular?

Even though factor investing is thrown around a lot in financial jargon it still has been limited in usage. It can be because of the following factors.

1. Keen on Risk

Factor investing is based on the principle the more risk you are willing to take the more probable gains await you. Risk-averse investors generally tend to avoid factor investing. Apart from risk avoidance, certain investors may not even believe in the possibility of the fund beating the market. This is because in the year 2017 only 15.77% of the funds in the US beat the market and even fewer in the long run.

2. Research

Factor investing has been well studied in the equities market. But there is still not enough research done for other assets like options futures etc.

3. Expensive

Although factor investing is cheaper than active investing and is still more expensive in comparison to Passive Investing. The problems are further alleviated as factor investing takes a longer time to reduce the odds of underperformance. Even if the fund performance beats the market the excess should also beat the additional expenses charged due to factor investing.

Closing Thoughts

Eugene Fama was recognized with the Nobel Prize in 2013. This did bring additional interest to the field of factor investing. Since then there are been multiple pieces of research and over 300 factors have been claimed to be discovered. Despite all these efforts, the perfect factor investing model is still unknown. 

The Indian markets currently have the following Indexes available in the Indian markets. They are NIFTY Alpha Low-Volatility 30, NIFTY Quality Low-Volatility 30, NIFTY Alpha Quality Low-Volatility 30, NIFTY Alpha Quality Value Low-Volatility 30. According to Akash Jain (Associate Director, S & P BSE Indices), the BSE has tested four factors in the Indian context: Quality, volatility, momentum, and value in down markets. They noticed that low volatility gave significant excess returns and in the up markets value tends to outperform. Low volatility here acts as a defensive factor and value enables stocks to perform well in macroeconomic conditions.

Factor investing has faced tough times in the recent past but it cannot be written off as it currently has over 100 years of data proving that it works. Factor investing will require a decade or two at least before it may be classified in a different category otherwise. If factor investing turns around it would be an industry-changing trend. Matt Peron ( Head of Global Equity -Northern Trust Asset Management) predicts that active managers will be increasings measured by their performance against factor indexes than market indexes. This could be because they could set the new standards to beat.

Porinju Veliyath Stock Portfolio and Success Story

Porinju Veliyath Stock Portfolio and Success Story

Porinju Veliyath stock portfolio and success story:

Porinju Veliyath is one of the most well-known investor and fund manager of the recent times in Indian stock market. He runs a portfolio management firm ‘Equity Intelligence‘.

Porinju is known to invest in lesser know companies with good business. He was named as small-cap czar by economic times.

Apart from investing, Porinju is also involved in organic farming. He holds a 10-acre farm outside Thrissur city at Chalakudy village.

Early Life:

Porinju Veliyath was born in a lower-middle-class family in Chalakudy village, near Kochi city in Kerala in 1962.

He started working at a young age of 16 because of the bad financial condition of his family. They have to even sell their house during that time to pay off their debts.

Porinju continued working along with his studies. He earned a law degree from the Government law college, Ernakulam, while working at Ernakulam telephone exchange at a salary of Rs 2,500 per month.

Later, he moved to Mumbai in 1990 when he was not able to find a good job.

Porinju’s stock market journey:

After reaching Mumbai, Porinju joined Kotak Securities as a floor trader. During the 4-years experience at Kotak, Porinju gained a lot of knowledge of share market.

In 1994, he joined Parag Parikh securities as a research analyst and fund manager. He worked there for next 5 years.

However, in the late 1990s, he because quite unhappy with Mumbai life and finally moved to Kochi is 1999.

He then started making investments on his own for the wealth creation and finally started his portfolio management firm ‘Equity Intelligence’ in 2002.

Few of the first investments of Porinju Veliyath are  Geojit financial services, Shreyas shipping etc. These both stocks turned out to be multi-bagger stocks.

Some of his more recent top picks are Jubilant Industries, TCI, NIIT, Force Motors and Alpa Labs.

Also read: One only needs common sense to make money in stock market: Porinju Veliyath, Equity Intelligence

Investment Strategy:

“I buy lesser-known, high quality businesses to derive maximum portfolio value. I don’t shy away from smaller companies like other ‘knowledgeable people’ do. And I don’t buy a lot of great companies with clean balance sheet, honest management and clear business visibility. If you invest in such companies, even bank FDs would beat your portfolio returns.” – Porinju Veliyath

Porinju Veliyath is known as a small cap investor. He believes that if the business is good, investors should not care much about the market capitalization. Most of the companies in his portfolio do not pass muster with large institutional investors, however, has given him multiple times returns.

Source: Equity Intelligence

Porinju Veliyath Stock Portfolio:

Here is the latest Porinju Veliyath stock portfolio. Most of the stocks in his portfolio are small stocks. Therefore, do not be surprised if you haven’t heard the names of the most of these companies earlier.

Porinju Veliyath Stock Portfolio list with his latest holdings:

Stock Name Current Price (Rs.)
Emkay Global Financial Services Limited 216.00
SARDA PLYWOOD INDUSTRIES LTD. 175.40
Logix Microsystems Limited 75.75
ANSAL BUILDWELL LTD. 90.50
VISTA PHARMACEUTICALS LTD. 41.20
Nirvikara Paper Mills Limited 109.85
EASTERN TREADS LTD. 98.50
Palred Technologies Limited 91.60
RACL Geartech Ltd 76.50
PARNAX LAB LTD. 58.10
Cimmco Limited 126.50
ABC INDIA LTD. 99.50
DS Kulkarni Developers Limited 23.40
VEDAVAAG SYSTEMS LTD. 64.60
FLEX FOODS LTD. 121.45
SIMRAN FARMS LTD. 144.45
SAMTEX FASHIONS LTD. 6.09

Also read: 3 Insanely Successful Stock Market Investors in India that you need to Know.

While the portfolio of most of the big investors is filled with common names, the Porinju Veliyath stock portfolio consists mostly of lesser-known stocks.

Nevertheless, from Porinju Veliyath stock portfolio, you can learn that every successful investor has their own strategy and there is no fixed strategy to create wealth and achieve success in the stock market.

That’s all. I hope you have found the Porinju Veliyath success story inspiring.

Want to learn how to select good stocks for long term investment? Check out our amazing online course: HOW TO PICK WINNING PICKS? The course is currently available at a discount.

If you want me to cover the portfolio or success story of any other successful stock investor, do comment below.

#HappyInvesting.

Tags: Porinju Veliyath stock portfolio, Porinju Veliyath latest stocks, Porinju Veliyath success, Porinju Veliyath stocks
Dolly Khanna Portfolio

Top 10 stocks in Dolly Khanna Portfolio

 Top 10 stocks in Dolly Khanna Portfolio: 

Among on the wolves of the Dalal-street, there is this she-wolf who has got so much attention by investing in the lesser-known companies which later turnouts to be multi-bagger stocks.

Dolly Khanna is a Chennai based investor. Her net-worth has crossed 500 crores.

Her stock portfolio is managed by her husband Rajiv Khanna, who is a graduate of IIT Chennai in chemical engineering. Rajiv Khanna was the owner of the ‘Kwality milk foods’ one of the well-known food company in India until he sold it to Hindustan Unilever in 1995.

From mid-1990’s, Dolly Khanna and her husband Rajiv Khanna started investing in the Indian stock market. Dolly Khanna is the brain of their investments.

Few of the biggest investments in Dolly Khanna portfolio which made her a tycoon in investing world are Neelkamal, Mannpurnam finance, Trident, Hawkins India etc.

Neelkamal gave her a return of over 900% when it grew from Rs 160 to Rs 1950.

Few small-cap companies in Dolly Khanna Portfolio which gave her good returns are Wimplast (7x return), Cera sanitary ware (7x return), RS Software (4x return), Avanti feeds (5x return) and Amara Raja (3x return).

Few of the recent investments of Dolly Khanna portfolio are in Rain Industries, Nahar International Enterprises, and Ruchira Papers.

Top 10 stocks in Dolly Khanna Portfolio (November 2017)

Here is the list top 10 stocks in Dolly Khanna portfolio updated till November 2017.

Stock Name Current Price (Rs.) Quantity Held Holding Value (Rs.)
Rain Industries Limited 343.50 68,77,710 236.25 Cr
Manappuram Finance Limited 107.55 95,34,454 102.54 Cr
NOCIL Limited 179.75 33,08,410 59.47 Cr
IFB Industries Limited 1320.00 4,23,955 55.96 Cr
Nilkamal Limited 1794.45 2,32,576 41.73 Cr
Thirumalai Chemicals Limited 1947.65 1,77,355 34.54 Cr
Srikalahasthi Pipes Limited 419.60 6,30,821 26.47 Cr
Dhampur Sugar Mills Limited 297.65 8,23,737 24.52 Cr
Tata Metaliks Limited 800.10 2,76,092 22.09 Cr
LT Foods Limited 70.30 29,07,256 20.44 Cr

Source: https://trendlyne.com/portfolio/superstar-shareholders/53757/latest/dolly-khanna-portfolio/

The stock picking style of Dolly Khanna is definitely unique due to her technique of investing in lesser-known small-cap companies. Nevertheless, it looks like her investments are working great for her.

Leave a comment below on any of the latest pick in Dolly Khanna Portfolio

Tags: Dolly Khanna portfolio, dolly Khanna latest pick, dolly Khanna latest portfolio, dolly Khanna investor, dolly Khanna best picks

How Many Stocks Should you own for a Diversified Portfolio?

Hi Investors. Today, we are going to discuss- How many stocks should you own for a diversified portfolio? How many stocks are too few and how many stocks become too many?

In general, there is no correct answer to this question and the answer varies according to your investment goals. However, there are few thumb rules for defining the number of stocks in your portfolio. We will discuss them in this post. But first, we should understand the meaning of a diversified portfolio.

What is a diversified portfolio?

A diversified portfolio is investing in different stocks from dissimilar industries/sectors in order to reduce overall investment risk and to avoid damage to the portfolio by the poor performance of a single stock.

For getting good returns from your investments, it’s important that your stock portfolio is well diversified. Both under diversification and over-diversification is adverse for an investment.

  • Under diversified portfolio has more risk as the poor performance of a single stock can have an adverse effect on the entire portfolio.
  • On the other hand, over-diversified portfolio gives low returns and even good performance of a single stock will lead to a minimum positive impact on the portfolio.

As a thumb rule, as the number of stocks in the portfolio increases, the portfolio becomes more diversified, and risk decreases (but profit on the portfolio may be lower).

In a similar way, as the number of stocks in the portfolio decreases, the portfolio becomes under-diversified, and risk increases (but profit on the portfolio may be higher).

Also read: How to create your Stock Portfolio?

How many stocks should you own for a diversified portfolio?

  • Minimum 3 stocks from different industry:

There should be at least 3 stocks from dissimilar sector/industries in your portfolio.

  • Maximum number of stocks should be 20:

The maximum number of stocks in any retail investor’s portfolio should be 20. If the number of stocks becomes greater than 20, then it becomes counterproductive for the portfolio. Although the risk decreases but the profit margin will also decrease. The impact of a single stock in the portfolio will be minimal.

Note: Here the number of stocks in a diversified portfolio is suggested for an investment over Rs 10,000. If you’re investing lesser amount, then your stock portfolio can be different.

Read more here: How To Invest Rs 10,000 In India for High Returns?

Diversification is a good method to safeguard your portfolio during market correction or a bear market. All the stocks in your portfolio will not perform poorly at once and even the poor performance of few stocks will be canceled out with your good performing stocks.

However, the diversified portfolio does not act as a shield for your portfolio during recession or market crash. During 2008 market crash, when Sensex fell over 60%, then even the well-diversified portfolios weren’t able to safeguard the investor’s portfolio.

Other points to note:

  • Rebalance your portfolio regularly: Sometimes one of your stock might be performing extremely well and can become a major contributor in your portfolio. In such cases, rebalance your portfolio so that it can remain diversified.
  • Hold the winners and Cut the losers: Do not hold the underperforming stock too long just to keep your portfolio diversified. Sell the losing stocks and re-organize your portfolio.

Also read: How to follow Stock Market?

Conclusion:

In general, a retail investor should hold stocks between 3 to 20 from dissimilar industries/sectors. However, 8-12 stocks are sufficient in your diversified portfolio.

That’s all. I hope this post on ‘How many stocks should you own for a diversified portfolio?’ Is useful to the readers.

If you have any doubts regarding your portfolio, please comment below. Invest smart, invest long.

ow to monitor your stock portfolio COVER

How to Monitor Your Stock Portfolio?

How to monitor your stock portfolio?

Hola Investors. Today I am going to teach how can monitor your stock portfolio in an easy and effective way.

First, let me clarify that in this post we are going to learn how to monitor the performances of the holding stock in your portfolio.

We are not going to discuss how to track your profits or how much money you have made from the market. There are a number of financial websites and apps that you can use to track your profits or losses.

Here we are going to discuss how to monitor the performance of the holding stocks. How is the company doing? Is the company’s performance improving or declining?

This post has nothing to do with the stock price movement, but to monitor the company’s performance and growth.

As creating a good stock portfolio is important, similarly, it’s equally important to monitor the performance of the holding stocks in your portfolio.

Quick Tips:

There are few tips that I would like to give you first before we start discussing how to monitor your stock portfolio. They are:

1. You do not need to check the stock prices daily:

Until you are involved in Intraday trading, checking the stock price daily won’t help you much. It’s a lot easier and stress-free if you do not check the prices of your stocks daily.

2. Moreover, do not calculate your net profit/loss daily:

The stock market is dynamic and the stock prices change every second. And hence, there is again no use to check your net profit/loss daily.

3. ‘Buy & hold’ is old:

If too much involvement is wrong, in the same way, extra ignorance towards your stocks is also bad. Do not trust blindly on your holding companies. ‘Buy and hold’ strategy has few loopholes and you need to monitor even your best performing stock.

4. Look at unexpected changes:

If there is a drastic rise/fall in the price of any of your holding stock, then you need to investigate the reason behind it.

Now that you have understood the quick tips, lets us study how to monitor your stock portfolio.

How to monitor your stock portfolio?

1. Read the important news about the company:

Keep updated with the latest happenings of the company and the industry. There are a number of factors that can affect the company which can be both domestic (government norms, taxes, duties etc) and international (Currency exchange rates, crude oil, war scenarios etc).

To keep updated with the news you can set google alerts for the companies in your portfolio. All the news related to the company will be directly sent to your email inbox.

Learn how to set google alerts here.

Further, you can also read important news on few financial websites like money control and screener if you create your portfolio on it. These sites will notify you about the news regarding the company.

Also read: 7 Best Stock Market Apps that Makes Stock Research 10x Easier.

2. Check the quarterly results of the company:

Every company in India releases its results quarterly i.e. 4 times in a year. Typically, a company releases its results within 45 days after the end of every quarter (March/June/September/December).

Study the quarterly results of the company in your portfolio. If the results are good, then enjoy. However, if the result is bad, then do not get influenced by the loss of the company in just one quarter. In any business, there will be losses sometimes. What matters is the consistency. Nevertheless, if the company is continuously giving bad results, then you need to reconsider about the stock.

3. Read the annual results:

Company’s annual reports are the best way to evaluate its performance. Using the annual reports, you can compare the company’s performance with its past to check its growth. You can also read the company’s future plans and strategy in the annual result.

Also read: How to do Fundamental Analysis on Stocks?

4. Keep an eye on Corporate announcements:

Read the corporate announcements to remain updated with corporate actions of the company like new acquisition, merger, appointment or resignation of senior management etc. This information can also be found on the company’s website.

5. Monitor the shareholding patterns:

You also need to check the shareholding pattern of the company, mainly the promoters shareholdings.

An increase in the shares of the promoters is a healthy sign. Promoters are the owners of the company and they have the best knowledge of the company. If they are confident about its future growth, they are usually correct.

However, if the shareholding of the promoters is continuously declining, then it’s a bad sign. Investigate further why the promoters are selling their stake.

Besides, do not get afraid if mutual funds, FII, DII are buying/selling the stocks. They buy the stocks on the availability of funds.

Related post: 7 Must Know Websites for Indian Stock Market Investors.

6. Check the promoter’s pledge of shares:

Promoters pledge of share is always a sign of caution. If the pledging is continuously increasing, then be aware. You can check the promoter’s pledge of share on the company’s website.

Although it takes few efforts and time to continuously monitor the stocks in your portfolio, however, it’s worthwhile doing it.

Nevertheless, if you have less number of stocks in your portfolio, say 8-10, then it won’t take much time to monitor your portfolio.

Moreover, the Google alerts and mobile app notifications have made the life of investor lot easier. You can read most of the news and information on your mobile without much effort now.

If you are new to investing and want to learn stock market from scratch, here’s an amazing course for the beginners: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS.

That’s all. I hope this post on how to track your stock portfolio is useful to the readers.

If you have any doubts, do comment below. I reply every one of them.

Tags: How to monitor your stock portfolio, how to monitor stock performance, how to track your stocks, portfolio monitoring, how to monitor your investment portfolio
Successful Stock Market Investors in India

Rakesh Jhunjhunwala Latest Stock Portfolio

Rakesh Jhunjhunwala latest stock portfolio: Rakesh Jhunjhunwala, the big bull of Indian stock market, is one of the most successful investors in India. He has created a huge wealth by investing in Indian stock market.

Starting with the initial investment of only Rs 5,000, currently he is sitting on a huge net worth of around Rs 15,000 crores.

Many of the stocks in his portfolio has holding period of over 5 years and given multiple times returns on his investment.

Also read: 3 Insanely Successful Stock Market Investors in India that you need to Know.

His Idealogy:

Rakesh Jhunjhunwala follows the idealogy of Warren buffet and believes in long term investment.

He strongly advocates the growth of India and it’s rising economy.

Mr. Jhunjhunwala is also believes in learning from mistakes. He often says- ‘Mistakes are your learning friends. The idea is to keep these mistakes small.’

In today’s post, I am going to present top stocks in Rakesh Jhunjhunwala’s latest stock portfolio.

Note:

My sincere request to the readers that please do not copy the portfolio of Mr Rakesh Jhunjhunwala blindly. He has his own strategy of investing and might have bought the stocks when it was selling at a decent price. You do not want to pay double amount of what Mr Jhunjhunwala has paid and expect the same returns.

The motive of this post is to educate the readers with the portfolio of a successful stock investors, so that you can learn few new ideas and create your own portfolio.

However, if you want to buy these stocks, make sure to study the stocks carefully. Do not buy the stocks just because Rakesh Jhunjhunwala has bought these stocks. Study the stocks, make your strategy and then invest.

Rakesh Jhunjhunwala latest stock portfolio:

Company Name Sector Current Price (in Rs) No of stocks (in lakhs) Investment value (Rs in Crores)
Titan Company Ltd Jewellery/Luxury goods 595 740 4,380
Lupin Ltd Pharma 1042 79 830
Escorts Ltd Auto tractors 698 112 780
DHFL Finance- Housing 546 100 546
Delta corp Ltd Construction/ Real estate 213 225 480
CRISIL Ltd Miscellaneous /Ratings 1785 400 714
Rallis India Ltd Chemicals/ Pesticides 229 195 445
Karur Vysya Bank Ltd Private Bank 143 216 310
MCX- Multi commodity exchange of India Ltd Miscellaneous 1063 200 212
Edelweiss Financial Services Ltd Finance 266 90 240
Aptech Limited Computer/software 309 95 297
NCC Ltd Construction & contracting 85 567 490
Federal Bank Ltd Private Bank 117 416 490
Aurobindo Pharma Ltd Pharma 744 65 490
VIP Industries Plastics 262 52 137
Jai Prakash Associates Conglomerate 19.90 250 50

Read more at: Jhunjhunwala is making a killing with contra bets; portfolio stocks up 200% 

titan company

Summary:

Here is a quick review of the Rakesh Jhunjhunwala latest portfolio:

If you want to get in-depth knowledge about Indian Stock Market, I will highly recommend you to read this book: How to avoid loss and earn consistently in the stock market by Prasenjit Paul

That’s all. I hope this post is useful to the readers.

If I have missed any big company name in Rakesh Jhunjhunwala latest stock portfolio, do comment below.

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Six Different Types of Stock in Indian Market according to Peter Lynch

Six Different Types of Stock in Indian Market according to Peter Lynch:

Peter Lynch is the renowned American investor and ex-manager of Magellan fund at Fidelity investment. He is famous for his averaged 29.2% annual return for the duration of 13 years. The prodigal mutual fund manager divided the stocks into six categories during his investment experience. Namely: slow growers, stalwarts, fast growers, cyclical, asset plays, and turnarounds.

We are also going to follow lynch’s path.  Here are the categories with the examples of stocks from Indian markets so that they are easier to understand.

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Six Different Types of Stock in Indian Market according to Peter Lynch:

1. Slow growers / Sluggards

Slow growers, which originally once were fast growers, can be identified easily with a slow growth rate i.e. a low upward slope of earnings growth and stock price. The growth is usually between 2-5%. They can also be identified by the size and generosity of their dividend.

Peter Lynch did not like to spend time on these ‘sluggards’ and his portfolio consisted of very less percentage of slow growers. According to him, the only reason to buy these stocks is their dividends. They generally give a very good dividend (about 4-6%) and are a good asset during the recession as its very unlikely for their stock to feel too hard.

Example: Reliance, Power Grid Corp

2. The Stalwarts

They are the second type of categories of the Six Different Types of Stock in Indian Market according to Peter Lynch.

These stocks have average growth rate and are usually large companies that have earnings growth in the 10-12 percent range – higher than the slow growers.

According to Peter lynch, you can get a good return from these stocks if you wait for a long time. They generally end up from two-baggers (two times your buying price) to four-baggers. It’s good to have few stalwarts in your portfolio.

Example: HPCL, Bajaj Auto, Mahindra & Mahindra

Best book for Stock Market Beginners– If you are new to stocks, I will highly recommend to read ‘ONE UP ON THE WALL STREET‘ by Peter Lynch. It is available currently at the best price on Amazon.

3. The fast growers

The fast growers are everyone’s first choice. These stocks are generally small aggressive new enterprises and they grow at an impressive rate of 20-25% per year. But one should be open-eyed when they own a fast grower. There is a great likelihood for the fast growers to get hammered if they run out of steam and become a slow grower.

Peter lynch’s portfolio consisted mainly of the fast growers. He looks for fast growers with good balance sheets and which have good profitability. This category is also the lynch’s favorite among the Six Different Types of Stock in Indian Market according to Peter Lynch

Example: MRF, Eicher Motors, axis bank, Infosys, Maruti

4. The Cyclicals

The Cyclical can be distinguished from the fast growers as the cyclical keep on expanding and contracting and again repeating the same cycle (while the fast growers keep on expanding). They tend to flourish when coming out of a recession into a vigorous economy.

Automobiles, Metals, Chemicals, Tyres etc are the examples of the cyclical. Their charts tend to be very up and down over time. It is advised to owning the cyclical only on the right part of the cycle.  That is when they are expanding. Sometimes, it even takes them years before they perform. Timing is everything and you need to be able to detect the early signs that business is falling off or picking up.

Example: GAIL, Coal India, SBI

5. The turnarounds

The turnarounds are identified by Lynch as ‘no growers’ rather than ‘slow growers’. They are potential fatalities that have been badly hammered by the market for one or more of a variety of reasons. But they can make up lost ground very quickly.

Peter lynch identifies different types of turnarounds in his book ‘One up on the Wall Street’ and admits to being burnt by a number of them but suggests that the occasional success can be exciting and rewarding.

Example: Tata Steel, Phoenix Mills etc

6. The Asset Plays

This is the last category from the Six Different Types of Stock in Indian Market according to Peter Lynch.

The asset plays are those stocks whose stocks are greatly undervalued and those stocks that have assets overlooked by the market. These assets may be simply cash that the company is holding but which is not valued when there has been a general market downturn. The cash may be worth more than the market capitalization of the company.

Many of the PSUs are key asset plays because of the real estate property they are holding. For example- State bank of India. SBI has over 24,000 branches all over India. A similar example is ONGC.

Peter lynch understands the worth of the asset plays. He suggests owning few of these stocks in your portfolio as they are most likely to give you a good return in the future. The only significant thing in these stocks is to carefully find these stocks and right estimate for the worth of the assets. If you are able to do it, own that stock.

Try it out yourself!

So, these are the six different types of Stock in Indian Market according to Peter Lynch. If you followed the post, you can also easily categorize any stock in the six types given above. So, go on, play around different stocks and classify them accordingly to above categories.

NOTE: The research on Six Different Types of Stock in Indian Market according to Peter Lynch is derived from his Book ONE UP ON WALL STREET.

Further, please comment below with the name of stocks that fits the above categories. I will really appreciate it and it will be very beneficial for the other post viewers.

New to stocks and confused where to start? Here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!

How to create your Stock Portfolio?

An intelligent investor should know the importance of a well-diversified smart portfolio. Whether he is investing in stocks, bonds or mutual investment, he always chooses his portfolio smartly. Although most people have a different strategy for creating their portfolio, there are a few main points that should be taken care of while creating your portfolio.

Portfolio Diversification

A smart portfolio is the one, which maximizes the profit and minimizes the risk. The first step of creating an intelligent portfolio is ‘Diversification’.

What diversification means, in general, is to buy stocks from different sectors (Banks, autos, FMCG, energy, IT, etc) rather than buying a single or two stocks of huge amount. In short, it can be explained by the old saying- ‘Don’t put all your eggs in the same basket’.

While many people argue that, it makes a lot of sense to invest a huge sum of money on a sure-shot stock (which you are too confident about- example Microsoft, which gave 10 times or more returns). However, we like to differ from the argument.

There are various reasons we can give you to support our conclusion.

First, you never know which stock is next Microsoft. Stocks like Microsoft are only a few among more than 5000 stocks in the stock market. If by any chance you made a mistake or if by bad circumstances, the company is not able to perform as expected, and then your whole sum of money will be in vain & you may be in a tremendous loss. Second, for investing in such a company, you need to be 1000% sure. You need to do a lot of intense investment about the company (which is generally not possible for a retail investor), but if you have a diversified portfolio you can slight risks if you are confident about your other stocks.

For example, if you have 10 good stocks, you can be certain that most of them (8-9) will outperform the market and give you a good result. 1-2 bad stocks in a group of 10 will not affect your overall portfolio. However, in the case of a single stock, it is either win or lose.

If you want to learn more about stock market investing strategies, I will highly recommend you to read this best-selling book: One Up On Wall Street: How To Use What You Already Know To Make Money In the Market by Peter Lynch

Therefore, in this post about How to create your stock portfolio, we suggest our retail investors invest in a diversified portfolio. Do not buy 1 lakh shares of just one company in your portfolio.

The advantages of a diversified portfolio:

  1. Diversification helps you in giving liberty to choose a variety of stock. You need to do extraordinary in all the stocks you choose. If most of the stocks are performing well, then your portfolio will overall be in profit. Like the legendary investor Warren Buffett said ‘You only have to do a very few thing right in your life so long as you don’t do too many things wrong.’
  1. Sometimes some sectors underperform and because of which the stock will underperform. Say, if the bank sector is not performing then your bank stock will be in loss. However, it is very less likely that all other sectors (IT, autos, FMCG etc), will also not perform at the same time. During such times, diversification can help you to remain in profit withholding the stocks of other sectors.
  2. Further, if because of some unpredictable reason, one of your stock is not performing well, but you are confident that it will perform well in future, you can still keep the stock on the stake of your other good-performing stocks. You just need to balance out and be overall in profit. [In undiversified case, if your stock is not performing, you will be in overall loss and which might lead you to sell that potential stock.]

Hence, form the arguments that we just put forward, you must follow the diversified portfolio in the stock investment in order to minimize your losses.

How to create a diversified stock portfolio?

Now, we will give you an example of how to create your stock portfolio using diversified portfolio strategy so that you can get an idea of how to create one.

 

 

Stock Name Sector Price No of Stocks Investment** % in Portfolia
BPCL Oil & Gas 713.12 20 15000 21.28%
IndusInd Bank Bank 1334.22 10 13500 19.15%
Hero Motocorp Auto 3163.05 2 6300 8.94%
Tata Motors Auto 460.20 10 4700 6.67%
Infosys IT 990.45 10 10000 14.18%
Tata Steel Metals 485 20 10000 14.18%
Emami FMCG 1077.55 10 11000 15.60%
Total 70500 100%

**Investment is not just Price X (no of stocks). It also includes other charges like brokerage charge, transaction charge, STT, service charge etc.

Quick Note: New to stocks and confused where to start? Here’s an amazing online course for the newbie investors: INVESTING IN STOCKS- THE COMPLETE COURSE FOR BEGINNERS. Enroll now and start your stock market journey today!

There are other important points in our discussion about how to create your stock portfolio, which need to be taken care while creating your portfolio, and will be discussed in subsequent posts.