Knowledge Faqs with Gaurav Jain (Knowledge Satsang-09)

3 min read

Here are some questions asked by the viewers in the Yagya dated 31st August 2021. These questions can provide you 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.

Q What are the quality to be checked while picking the stock?
Gaurav Jain:

• Quality of the stock.
• Value of the stock- Price based on durability.
• Diversification is to preserve wealth and concentration is to build wealth. The more diversification is happening then the focus will on the conservation of wealth. So it is always recommended to have the stock in the range of 12 to 20.
• Never invest in a business you don’t understand.

Q View on Sugar Industry, specifically Praj Industries.
Gaurav Jain:

• The problem with the sugar industry is a lot of influence of political class.
• There are very few good companies.
• Praj is not a pure sugar industry it is capital intensive business.

Q How is the expense ratio of NPS Tier 1 and Tier 2 and can the withdrawal be done through govt securities and corporate bonds?
Gaurav Jain:

• The expense ratio is very minimum i.e., around 0.1% in Tier 1 and Tier 2.
• For the withdrawal 60% can be withdrawn, 40% needs to be done annuity for tier 1.
• In Tier 2 the money can be put and withdrawn at any time.

Q View on Zee Entertainment for the long term?
Gaurav Jain:

• The overall entertainment industry seems not good.
• There are a lot of hiccups and competition.
• There is no such MOAT.
• If the content is good any other entertainment industry can beat it.
• Technology is changing the entertainment industry very fast.
• It is not the sector that is a fast-growing sector.
• It is a competitive sector. You can go fast and go down.
• It is impacted by a lot of events.

Q How to follow asset allocation as a beginner?
Gaurav Jain:

• The asset allocation needs to be done when there is a sizable about of assets created.
• As the asset grows preservation is also important.
• When goals come into the picture then the asset allocation needs to be done.

Q Maruti Suzuki & M&M shares being purchased for 4 Years for 15 Years long term?
Gaurav Jain:

• The Auto sector is going through major changes.
• The companies are not bad.
• If we focus on the industry, the auto industry is going through a lot of changes due to EVs, in the future Hydrogen fuel cells will also play the role.
• There are different technologies are also there in EVs.
• As there is a lot of competitors in this segment so this is a risky sector.

Q View on Glenmark Lifesciences?
Gaurav Jain:

• It is a good player.
• In API it is a conservative player.
• It is having good governance, conservative growth.
• 40% of business is coming from its parent Glenmark Pharma.
• It is a moderate player in the chemical sector.

Q Is REIT investment beneficial?
Gaurav Jain:

• It is a good option in real estate allocation.
• Good for long term
• Commercial real estate has been badly hit due to COVID.
• To recover it will take some time.
• The current REIT is of high quality.
• It is conservative investing.

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