Interest on Interest Waiver: Is the move justified?
Market News

Interest on Interest Waiver: Is the move justified?

Loan - a word, which in itself has both positive and negative impacts on a person. On the one hand, it is a monetary blessing which gets an individual, company or entity one step closer to achieving whatever it is they desire; and on the other hand, it is a stressful liability, which comes in the form of expensive EMIs and regular interests, failing to pay which, tends to trap the borrower in an almost inescapable trap of hefty penalty and interests.

Continue Reading about 1 months ago
How to Check CAMS IPO Allotment Status?
Invest

How to Check CAMS IPO Allotment Status?

During the recent initial public offerings (IPO) wave hitting the country, numerous companies of different industries opened up their IPO for the public in the last month, and one of them became the biggest IPO of the FY20 so far, after getting an overwhelming response from investors. This company was private equity firm Warburg Pincus-backed Computer Age Management Services (CAMS).

Continue Reading about 1 months ago
SEBI’s New Rule for Mutual Funds NAV: What does it mean for you?
Invest

SEBI’s New Rule for Mutual Funds NAV: What does it mean for you?

In the rising economic tensions due to the global COVID-19 pandemic, safeguarding the market investors' funds and rights is becoming increasingly important. Everyone is struggling hard to survive, if not grow, in this era of economic disruption.

Continue Reading about 2 months ago
What is a CIBIL score? How can you improve your CIBIL score?
Finance

What is a CIBIL score? How can you improve your CIBIL score?

Imagine you're in your college. You get a good amount of pocket money, which is more than your monthly expenses; hence you always end up saving some money in the end. Now imagine two of your classmates come to you on different days and ask you for some money. Now, since you only have limited savings, you can afford to help out only one of them. How do you decide whom you will lend the money to? 

Continue Reading about 2 months ago
SEBI’s new multi-cap fund rule: What lies ahead?
Invest

SEBI’s new multi-cap fund rule: What lies ahead?

Do you remember celebrating any festival as a child? Be it Diwali, Eid, Rakshabandhan, Holi, absolutely any festival, one thing you were sure to receive as a child, apart from new clothes and sweets, was money. And you'd probably lie to yourself if you say that this was something you weren't the most excited about. Some of us liked to collect and store it in our piggy banks, and the rest would immediately set out to spend it. And since it was the money that was completely ours, we didn't need to seek any permission from our elders as to where and how we could spend it; well, usually.

Continue Reading about 2 months ago
Everything about Deepak Kochhar & Money Laundering case
Market News

Everything about Deepak Kochhar & Money Laundering case

The dispute between India and China has come out openly in front of the entire world, and it wants the two Asian giants to make peace with each other. Still, despite several diplomatic talks and statements, the issue is far from over. In the current times, a traditional war cannot be an option unless either side triggers something big. Hence, both the nations resort to indirect attacks (proxy-wars) at each other. One move at this series of ‘proxy-war’ was the recent mobile app ban of Chinese applications by the Indian government, which resulted in a direct financial loss to China. The proxy war is a technique through which you can attack your enemy through indirect techniques. Keeping a note of the pattern of each proxy measure, both the nations can plan ahead and try to minimize the damage caused by the other nation’s move, if not completely avoid it.

Continue Reading about 2 months ago
Master Class 12: Understanding Quick Ratio & Interest Coverage Ratio
Stock Market Concepts

Master Class 12: Understanding Quick Ratio & Interest Coverage Ratio

Identification of companies with good investment opportunities is something that every investor should know how to do. Similarly, it is equally important to identify companies that do not have good stocks, companies that might be on the verge of bankruptcy, or companies that are unable to bear their own financial burden. The stocks of such companies are doomed to fail, and thus, investment here can prove to be a very bad decision and can lead to the loss of the investor's valuable money.

Continue Reading about 2 months ago
Master Class 11: Price to Growth (PEG) Ratio
Stock Market Concepts

Master Class 11: Price to Growth (PEG) Ratio

One of the most important steps in evaluating a company's financial health and position is its valuation. Basically, the valuation of anything is an estimation of its worth. 

Continue Reading about 2 months ago
SEBI’s new guidelines: What do they signify?
Invest

SEBI’s new guidelines: What do they signify?

In November 2019, the capital market regulator Securities and Exchange Board of India (SEBI) banned one of the country's leading brokerage firms, Karvy Stock Ltd. Karvy Stock Broking was accused of pledging its client's shares and transferring clients' securities worth Rs 1,096 to its group company Karvy Realty Pvt Ltd, without their consent. This incident shook the trust of the country's retail investors in the brokers, with some even pulling out their contracts with the brokers. This incident instantly raised the question of the extent of trust that can be put on brokers. Investors were left worried as to how can they protect themselves from such frauds? Will the government and the regulatory authorities do something to safeguard their interests?

Continue Reading about 2 months ago
Why Indian GDP Growth Rate is Declining?
Market News

Why Indian GDP Growth Rate is Declining?

Don't you feel like the pandemic has turned your life upside down? You're getting bored in the house and bored with the quarantined life? You miss your pre-pandemic life, and you miss going out? For some of your life must have changed its course, and some of you might even have taken a life-changing decision yourself. Jobs lost, businesses down, socio-personal life down..

Continue Reading about 2 months ago
How is WhatsApp Pay faring? The Challenges before it.
Market News

How is WhatsApp Pay faring? The Challenges before it.

These days, a user of an online mobile application has very little time and patience. They want everything to be available in just one click and want to fulfill their purpose within a very short span of time. Adding to this, even though mobile phones are increasing their storage capacity constantly, users want to avoid downloading multiple applications and feed in their details that many times. A company that entertains this demand of the users is bound to succeed. 

Continue Reading about 2 months ago
RBI’s new guidelines regarding Current Account of borrowers
Market News

RBI’s new guidelines regarding Current Account of borrowers

Ever thought of how such big industrial giants and companies, who do businesses worth thousands of crores of rupees on a regular basis, manage their banking? Major big industrial giants and companies in the Indian market have several bank accounts, through which all the transactions happen. These accounts are mostly current accounts which are opened with several private banks, due to the numerous services and facilities they provide. However, companies rarely have one single current account.

Continue Reading about 3 months ago
What is Return on Capital Employed?
Ratios

What is Return on Capital Employed?

Companies ensure that they provide better returns to their investors with the addition of leverage in their total capital, and thus show higher profitability and returns. We also previously understood evaluating a company's profitability and rate of returns to its investors with the use of Return on Assets (ROA) and Return on Equity (ROE) ratios. However, in order to understand how the company is using its total capital, one must know the rate of returns on the total capital employed. This ratio is known as the return on capital employed ratio.

Continue Reading about 3 months ago
Understanding Financial and Operational Leverages
Ratios

Understanding Financial and Operational Leverages

When a company wants to increase its investments in order to expand its asset base and generate returns towards risk capital, it sometimes borrows capital as a funding source. This is known as Leverage. Leverage is an investment strategy of using borrowed money, specifically from financial instruments or borrowed capital, to increase its potential rate of returns on equity. Leverage also refers to the amount a company borrows or the debt it uses to purchase or finance assets.

Continue Reading about 3 months ago
DuPont Analysis and its importance
Ratios

DuPont Analysis and its importance

The Return on Asset and Return on Equity are one of the most important considerations an investor takes while making an investment decision. It gives an insight into how well a company is using its assets to generate revenue and determines the value it creates for its shareholders and investors. However, these ratios still do not provide the whole picture. It is important to break down the components of ROA and ROE, and understand each of their current positions so that an investor can make a more informed decision. Without breaking down the ROE, an investor can be duped into believing that a company is a good investment when, in reality, it's not. Hence, to break down the ROE components and understand each of their roles and effect on the ROE ratio, a DuPont Analysis is performed.

Continue Reading about 3 months ago
Understanding Return on Equity
Ratios

Understanding Return on Equity

In the previous blogs, we understood the meaning and application of the accounting ratios of Return on Investments (ROI) and Return on Assets (RoA). While ROI gives an insight into overall profitability, ROA focuses on the returns generated through the efficient use of the assets a company possesses.

Continue Reading about 3 months ago
Importance of Return on Assets in Investment Decision
Ratios

Importance of Return on Assets in Investment Decision

In the last blog, we understood the need to analyse how a company uses its investments and assets in order to generate profits and provide returns to its investors, through the calculation of Return on Investment. However, as mentioned earlier, ROI is a broader measure and focuses on the returns generated on different types of investments. In order to make a clear and well-informed decision, one must focus on the more detailed and concentrated aspects and understand a company's profitability. The next step towards this will be to understand the return on a company's assets.

Continue Reading about 3 months ago
Analyzing Investment Decisions through Return on Investments
Ratios

Analyzing Investment Decisions through Return on Investments

Before making a decision on investing money in a company, a potential investor must analyze the company's ability to provide returns to its shareholders. Investors, business managers, stock advisors analyze this ability by calculating various ratios and percentages based on the company's financial statements. This analysis enables an investor to analyze a company's financial status and health. By converting the original financial numbers to ratios, it becomes easier to analyze the risks and trends in the market and the potential risks involved with the company.

Continue Reading about 3 months ago