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Indian Stock Market News and Views.

Is it the right time to buy a property? Part 2

| Filed under News and Views

In this second part of the series we will list out the factors you should consider before buying a property or in other words the factors that will help you decide if it is the right time to buy a property.

For self-use

Your decision to buy a property will always depend on what type of buyer or investor you are. If it is for self-use then timing of the purchase doesn’t matter much. Why? Historical long term trends points out that the value of a property will always be on an upward scale for the next 20 or 30 years! So the real question is “if one should buy now when the prices are increasing or wait for the prices to come down?”

 Is it the right time to buy a property?  Part 2

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Top Investment Myths

| Filed under News and Views

Busting some investment myths

Experience teaches us a lot of things. And the world of investment is no exception. That said it is equally important to realize that having lost money in investment once should not be a reason to not see the opportunities that lies ahead. This holds true particularly for those people who had lost money in investments before. Let us see some of the popular investment myths which should be avoided at any cost!

bp515249 240x300 Top Investment Myths

1. Never do it alone

Today the markets are not as simple as they appear. They are complex in nature. Right from finding out your investment purpose, your risk appetite, the asset classes which would suit it, and predicting the market conditions at least to some extent requires a certain degree of expertise. Hence as an investor you need an expert’s advice to make the right investment decisions. While it does help to have knowledge about investments it can never substitute an expert’s advice.

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How to earn money in stock markets

| Filed under Economy

Want to earn high returns from the stock market without taking the risk

savingsrates 300x300 How to earn money in stock markets

Is this really possible that you can earn high returns from the stock without actually taking any risk? Well this principle is actually called arbitrage and this strategy does for work for many people. No wonder that there are a number of fund houses that have actually launched many fund schemes known as “arbitrage funds”. Advertised as risk free, apparently there is no likelihood that a person will suffer losses when investing in the stock market.

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What is ASBA?

| Filed under Economy

SEBI introduced a new payment option ASBA (Application Supported by Blocked Amount) as an additional payment mechanism for the benefits of certain investors applied in IPO (Initial Public Offers). This option would be available to retail investors only. It is also an exclusively available payment option for the investors applying in right issue of shares, which means the additional shares offered to existing share holders of a listed company based on preference. According to the investors who experienced this new trend application, it is definitely a 100% success from SEBI’s new application. With this payment option the application money remains in the investors account until the shares are released. So no money is goes out from the investors account.

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When to book profits or Profit Booking

| Filed under Economy

Over the past ten years investors had to contend with large losses and large gains due to the down and hike in the sensex. To overcome the loss of investors, the need for a financial strategy which enhances returns is very important. Profit booking is such a strategy which enhances returns.

indian rupees When to book profits or Profit Booking

Profit booking is the term that we use mostly in stock trade. Booking profit is nothing but encashing the stock when it reaches its target price or ‘gain in a share by selling it this is called profit booking, making profit by selling a share which has gone above its purchase price. It can be done by individuals or by big operators or by brokers.

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What is Delisting Of Shares

| Filed under Economy

base jump 203x300 What is Delisting Of Shares

Exits are never easy, whether it’s an exit from a house where you have lived your lifetime or exiting an investment. Many of us would have faced such a state of mind when we know that the company where we had held shares for the last fifteen years would be soon delisted from the stock exchange. So what is Delisting? Delisting of a company means, a procedure in which a company’s shares are removed from the stock exchange. Delisting of shares has become a critical issue in the financial sector that causes uneasiness for the investors.

In such types of situations we would be totally confused, whether to hold shares and wait for the company to relist or encash them by selling the shares to the promoters. Over the past three years, a minimum of 50 companies have delisted from the stock exchange, due to this reason the retail investors get struck with their investments. Normally one of the main reasons for delisting is violation from the financial specifications set out by the stock exchange.

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When Should I Sell A Stock

| Filed under Stocks

When Should I Sell A Stock

keep thinking 221x300 When Should I Sell A Stock

As a trader nor as an investor this question would have been in your mind from the very first day you started your trading. When people normally see a bull phase in the market they start asking Should I Sell? You would very well know that how volatile the share markets were performing this year and you have seen the bottom and now you have also seen the revival coming back in but when its the time to make right decision we would always struggle for a right decision.

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How To Calculate Your Risk Appetite

| Filed under Stocks

Investing in shares shows a persons risk appetite. There is no specific formula to define the quantity of risk taken. But there are some factors that influence the investor. If the investor is riding his luck and getting high returns on high risk stocks he will invest all his assets and no one can prevent him from doing so. At the same time a person who has invested and lost a fortune during the downslide will be more comfortable with a low yielding fixed deposit in a nationalised bank.
Risk appetite mainly comprises of factors such as income level, ones ability to handle stress, previous experience, percentage of money invested compared to wealth, social factors, age and dependants, health factor and finally personality. These unquantifiable factors which vary in uncorrelated manner make it difficult to estimate ones risk appetite.
Risk profile which is totally different from risk appetite can be estimated with high accuracy. The preferred rule of thumb is cent percent of your savings should be in equity. To be on the safer side it can be 80% making a provision of 20% for other expenses in the future. If you have pension then percentage for investment can still be increased.
Since risk profile can give you a percentage exposure to high, medium and low risk asset classes but does not take into account your risk appetite, the best way to arrive at a personal asset allocation is to ascertain one’s risk profile and then increase or decrease it based on personal preferences.
The most important part about determining one’s risk profile is investing according to it, re-balancing to keep within the boundaries and above all resolving not to get distracted by the outside world.

risk warning How To Calculate Your Risk Appetite









Investing in shares shows a persons risk appetite. There is no specific formula to define the quantity of risk taken. But there are some factors that influence the investor. If the investor is riding his luck and getting high returns on high risk stocks he will invest all his assets and no one can prevent him from doing so. At the same time a person who has invested and lost a fortune during the downslide will be more comfortable with a low yielding fixed deposit in a nationalised bank.