Knowledge Faqs with Gaurav Jain (Knowledge Yagya- 11)5 min read
Some questions asked by the viewers in the Knowledge Yagya dated 21st September 2021. These questions can provide you with insights on some grounds. Please read these questions for knowledge purposes only and make any investment decisions only based on your research or the advice of your financial advisor.
• This thing happens many times and it always happens whenever there is an upper circuit.
• The upper circuit means there is a high demand and less supply. There is some percentage that is decided based on which circuit will be there.
• Recently, many stocks have touched Upper Circuit.
• One should remember that if you get rich early then there are chances of getting poor very soon as well. There is no shortcut to becoming rich.
• The more complicated the investment advice the less useful it is. This means if it is difficult to understand then the investment should not be done.
• If any asset class is not understood then it is always better to ask.
• Most people feel that financial or investment success can only be achieved by hedge fund managers who consider technical things about the financials which is not true. Investing in success does not require more intelligence but discipline is the major factor that play the role in it. The simple rule is Earn Well, Focus on Earnings, Save More, Invest More, and Invest in a Good Asset.
• If the income increases the lifestyle should not increase. As this will impact the saving and if the saving is less then investment will also be impacted. Simply, we should not increase the expenses too much.
• One Doesn’t need to be rich to invest, need to invest to be rich.
• Always try to avoid benchmarking the portfolio with the index. See whether the portfolio is meeting your expectations.
• If you are excited about the investment then most probably it is not better to invest. Excitement has no relation with investment.
• It is said that a house is a place to stay and is not an investment. Real estate is the place to consume. As it is a very complicated asset for the investment. Very difficult to buy, sell and manage.
• Don’t pay interest to something that loses value. Not to take loans whose prices are coming down or that can come down. An education loan is a good loan to take.
• Firstly, it will vary from company to company.
• As interest rates are down it is a good time to create volume.
• Floating rates are the interest rate if it starts increasing then it will also grow. A loan with a fixed rate is taken very little.
• Currently, Tata Power is looking good.
• They are entering into renewable energy and electric vehicles.
• Their distribution business and DISCOM business is also a growing business.
• Overall it is a good player if the investment is for the long term
• It is a game of debt allocation.
• Need to check how much allocation is on the Debt side.
• If the debt allocation is ~30% of the total investment, then it is recommended to have 10% of allocation in liquid debts as well as the total allocation in debt.
• EPF is always a better asset it gives more interest rates.
• It is always suggested for the long-term investor to always buy.
• Currently, the markets are at a premium valuation.
• But also need to understand earning is also good and expectation is also looking good, Which means it is not overvalued.
• It is advised not to stop investing if the person is a long-term investor.
• If there is a plan to invest a lump sum of the money then it should be invested in a staggered manner. It’s a behavior management tool.
• It is better to pay the tax and invest the amount.
• To save the tax, investment needs to be done in tax saver bonds or else buy another property.
• There is no issue with that as there are 3 different businesses.
• If we take the example of HDFC then there are HDFC AMC, HDFC Life, HDFC Bank.
• All the 3 are different industries having different growth rates, expectation and all the three are strong players.
• If the group is good then there should not be a problem.
• HCL is a very good company.
• But 100% investment until and unless you are an insider or you know about the company very well then in that case you need to take a good amount of allocation.
• If you are not an insider then this investment could be risky.
• 100% allocation in 1 company is not recommended
• It is a good stock. Need to understand the chemical industry.
• It is an event-based company that needs to understand the industry very well.
• Due to the China event, our industry is doing well.
• 1 year thought process is very small so it is not recommended to take it for the short term.
• These companies are PSU.
• So we need to understand that they are not going to get a great valuation. But they are consistently performing they are very fast-growing
• Also, the government is having a strategy for renewable energy.
• Due to the gas line to the domestic consumers, it looks futuristic.
• The fuel is also cheap in rate as compared to others and availability is also good.
• It is a good fast-growing sector