Investment FAQs with Parimal Ade (Investment Satsang- 04)

• The planning of the goal should be done based on the short term, medium term, and long term.
• Based on the at the allocation and type of fund should be selected.
o In the Short term, Allocation can be done in fixed income securities
o In the Medium-term, a Hybrid kind of portfolio can build such as Equity and debt with 3-5 years of the horizon.
o In Long Term (If 5yrs + term ) the allocation should be on the equity side based on the sector choose Large Cap (5-7years), Multicap (7-10 years), Small and Midcap (10 years+).

• As there is no proper regulation related to cryptocurrency opting for it is not advisable.
• The gold, stock, debt, and real estate are good for asset allocation.

·        The safest way to invest in gold is digital gold, gold funds, and gold ETFs
·        For long term sovereign, gold bond looks good as returns are given will be up to 2.5% which is tax-free.

Parimal Ade:
·        10 to 15 % of the allocation can be done for US equity.
·        Due to the increase in US taxation point negativity can be seen.
·        The next decade will be for the emerging market.

Parimal Ade:
·        As there is work from home culture going on, the rental business could build some pressure from corporates.

• Maruti is down by 20% from the 52 week high.
o It has lost the market share of 4-5%
o No strategy on electric vehicles
o Only Conservative investor can go for it
• In the case of Eicher Motor still, a lot of growth can be seen due to aspirational branding

• Due to the increase in NPA, the banking sector is going through pain.
• The retail portion can go to 80% till September.
• It’s an aggressive stock
• Conservative and Moderate investors should avoid these stocks.

• They are having 2 growth engines JIO and Retails.
• It is not overpriced stock.
• The market is waiting for the IPO of Reliance JIO and retails.

• Both the banks are good.
• HDFC Banking is aggressive on wholesale banking and corporate banking as well.
• Kotak Bank’s Subsidiaries are available so value unlocking can also be done.

• Positive View.
• Good growth potential is available.
• No NPA pressure on the Company.

• Stock stagnancy in terms of profitability in the last 2 years.
• Median PE ratio of 3years and 5 years is rallying on the upper side.
• Employees as a stakeholder are not happy.
• Stock has performed well for the last 1 year due to the pharma company rally.
• There is consistency in profitability but growth is the concern with the pharma industry.
• Funds are not diverted for research and development.

• Banking industry looks positive in the long run.
• Due to increasing in NPA numbers the next 2 quarters need to be cautious
• Positive on private banks for the next 10 years.
• Private banks may take maximum market share as compared to PSU Banks
• Currently 30-35% of private banks and 60-65% is PSU bank hold are there in the market. But this will be exactly the opposite in the tenure of 10 years.

• Earning growth was good in Q4 and even in Q1 FY22
• FY22 and FY23 ESP of Nifty could touch between 700 to 800.
• As it is seen the forward PE has already come down to 20 that’s how the market perception is going on.
• Earning for FY23 will be a robust year
• Correction may be expected about 10-15% for 52 weeks high because of the second wave.
• Previously a correction of 40% that had happened will not happen again.

• Steel Industry looks good.
• Currently it is going on the peak and don’t know when it will reverse.
• It is better to invest if there is deep knowledge in the steel industry.
• SAIL is slow as compared to other steel players

• It is the market leader.
• It has rational expectations on the stocks that are trading on the upper side.
• Stock can go into consolidation.
• Trading on premium valuation.

• Ultrashort funds and liquid funds will offer returns up to 4-5% or max up to 6%.
• REITs & InvITs can fulfill this as the option.
• Hybrid funds are a good option to invest.

• Company is going through a difficult phase not because of their problems but because of covid problems.
• These industries will be there for the long run
• The debt to equity ratio is more up to 0.74
• This difficult situation will go for 1 more quarter.
• Uncertainty in earnings.

• Q4 results had gone down Year on Year due to the milestone bonus was given to stakeholders to keep them happy.
• Trying to reverse the iteration by the company.
• FY 22 guidance has been given which is good.
• They have won new deals.
• HCL tech will be the dark horse of the IT sector.
• Valuation point compared to other companies it trades with a low premium price.
• It is a media-shy company but consistently performing.

• Deals in last financial year was good
• There is 15% earning growth.
• Nature of the IT sector can go well.