Posts by Author: gaurja newatia

Legal

How do Startups benefit from Alternative Investment Funds?

What are Alternative Investment Funds (AIF’s)? As the name suggests, AIF's are those investment vehicles that do not fall under the purview of traditional investments such as equity, debt, or bonds.

Legal

How do Venture Capital Firms help Startups?

No matter how unique your business idea seems, the primary component of success would be regular inflow of money. Of course other factors would be significant drivers, but ultimately it is the funding that would serve as the backbone for your company.

Investing

what is the Impact of Demerger on Shareholders?

There are often times when a diversified company opts for focusing on its core businesses and transferring its other business operations to a different company. This is the simple idea behind a popular corporate restructuring activity i.e., Demerger.

Investing

What should an investor look for in quarterly reports?

As a shareholder, do you forget holding the shares of a particular company, or are you anxious to know what is happening with the company whose shares you are holding? Well, if you belong to the second category, quarterly results are your savior.

Economy

Cutting Income tax Rate: Is Government in Dilemma?

In September 2019, when the government decided to slash corporate tax rate to 15% for new companies, it gave rise to speculation about a reduction in Personal Income Tax (PIT), which was raised to 42.7% for High Net Worth Individuals (HNIs) in the last budget. However, recently, the government has virtually ruled out any possibility of a tax cut.

Economy

What is the future of Steel Industry in India?

Steel Industry is the backbone of the Indian Economy. While the government of India has always taken concrete measures to make the industry competitive, the industry is often found amidst a plethora of challenges.

Investing

What is Discounted Cash Flow?

Imagine the scenario where you decide to invest a specific portion of your pocket money say Rs1000 into stocks. Well, how would you select the appropriate stock? Will you blindly follow the advice given by your friends and family, or would you, as an intelligent investor, do a cost-benefit analysis?

Investing

Mohnish Pabrai- The Indian Value Investor

"Heads I win, Tails I don't lose much." Intrigued by this beautiful quote which reveals an excellent style to invest?

Investing

Impact of Corporate tax cuts on Banks and NBFC’s

On September 20th, 2019, the Finance Minister Nirmala Sitharaman announced Corporate Tax Cuts in order to stimulate the economy. While in our previous article, we have already discussed at length the impact of Tax Cuts on the Corporate Sector.

Entrepreneurship

How is Indigo making Profits?

Have you ever wondered that how India’s largest airline operator IndiGo operated by Interglobe Aviation flies high despite the tumultuous nature of the airline industry? Well, the answer is the business model on which the carrier operates. The business model, known as the Sale and Leaseback Model, has been one of the consistent reasons for the carrier's soaring profits.

Investing

Securitization- The lifeline of NBFCs

Non- Banking Finance Companies (NBFC’s) play a significant role in driving growth and development by providing financial services to Micro, Small and Medium Enterprises (MSME’s) most suited to their business model. They aim at promoting inclusive growth in the economy by extending credit in rural sectors and financially weaker sections of the society.

Investing

What are the reasons for Auto Sector Slowdown?

The Auto Sector in India is under severe crisis after nearly a decade of high growth. The sluggish demand, along with liquidity crisis added to the stressful situation of the sector.

Investing

What is the 100 minus age investment allocation rule?

We all must be aware that diversification across Equity and Debt is the key to a successful investment. Do you ever wonder as to how can you decide the proportion of your investment in debt and equity?

Investing

Why are Gold Prices increasing?

Are you also wondering about the skyrocketing prices of Gold? Well there are reasons listed below backing the shooting prices.

Investing

Everything about promoter pledging that you should know

The Reserve Bank of India (RBI) in its Financial Stability Report dated June 27, 2019, expressed its concern over the high level of promoter pledging. The report argued that a high level of promoter pledging indicates the poor financial health of a company and probably a situation that a company is unable to raise funding from other sources.

Investing

What are Non-Performing Assets (NPAs)?

In February 2016, when the banks started reporting financial results for their December quarter, the Indian Financial Markets were rocked- Thanks to the dismal operating earnings of the banks which was on account of the soaring high value of Non-Performing Assets(NPAs).

Investing

How did the GDP growth rate fall to 5%?

A storm took the Indian Economy on August 30, 2019, when the Central Statistics Office (CSO) revealed that the real GDP growth in Q1 of the current fiscal has dropped to a six-year low of 5%. While this issue has created a lot of resentment against the government, renowned economists and politicians are calling it "all-round mismanagement" by the Modi Government. We must understand both the statistical picture and the causes behind the statistics.

Investing

How Important is NAV for Valuing Mutual Funds?

Whenever you plan to buy a mutual fund plan for yourself, the term that must have definitely caught your attention would be the Net Asset Value (NAV). This article is thus an attempt to answer intriguing questions related to the entire concept of the Net Asset Value. (NAV)