Low Priced Stocks vs High Priced Stocks – Which is better?

Inexperienced investors often confuse the share price of a company with its value. Let us understand this with an illustration. If an investor is given an option to buy either a stock priced at ₹ 10 or stock priced at ₹ 10,000, the possibility of such an investor buying the low-priced stock is quite high. As such, the typical retail investor suffers from a misconception that higher the price, lower are the chances of making serious money from a stock without taking into account other factors like valuation parameters such as price to earnings multiple, price to book value or dividend yield which is a serious fallacy. (more…)

Continue ReadingLow Priced Stocks vs High Priced Stocks – Which is better?

Alphaniti Partners with Zerodha for seamless Digital Execution

GET ACCESS & CHOOSE FROM AN EXTENSIVE RANGE OF EQUITY STRATEGIES & BASKETS

India has already witnessed a digital-first trajectory with one of the highest volumes of digital transactions in the world when the pandemic struck, and further propelled the use of contactless digital technology. (more…)

Continue ReadingAlphaniti Partners with Zerodha for seamless Digital Execution

Dividend Yield Investing

Investments in equities fetch returns in two forms. One is capital appreciation and the other is dividend. In a high growth economy like India, the focus of most investors tends to be on capital appreciation. They do not pay much attention to dividends. This is a mistake. Dividends play a key role in the valuation of a company. In value investing, dividend yield is a key parameter which determines whether a stock is attractive. It has been observed that a company which has high dividend yield is expected to contain downside for investors in comparison with a company which has low or no dividend yield. A company’s dividend yield is calculated by dividing dividend per share paid by the company by its share price. (more…)

Continue ReadingDividend Yield Investing

Growth At Reasonable Price

Right selection of stocks in investing is crucial to make money. One may follow different approaches towards stock selection but it all boils down to consistency in analysis, stock-picking and ultimately allocation – these 3 are the key ingredients of successful equity investing.

Conventional wisdom suggests two primary ways to analyse a stock. Fundamental analysis, which aims to ascertain the fair value of a business (stock). It takes into account quality of business of a company, demand and supply forces, pricing environment, and growth rates among other factors. Technical analysis, which assumes that the elements that impact movement of markets are easily predictable and all information about a stock is captured by the price of a stock at that moment in time. Technical analysts evaluate stocks on the basis of price and volume recorded on the stock exchanges. These two styles of analyzing stocks are applied in the following way: successful investors prefer fundamental analysis to ascertain the valuation of the stock and technical analysis to time the entry into and exit from a stock.

(more…)

Continue ReadingGrowth At Reasonable Price

Digital Investments – The New Normal

A Paradigm Shift To Investing Online

The entire world and human race are currently facing an extraordinary medical crisis due to breakout of the Pandemic COVID-19, however what is heartening to see is the gradual opening up of economies and its citizens starting to bravely cope and adjust to the evolving new normal.

Against this backdrop, the process of digitisation which had started in recent years and started transforming financial services landscape would only get further impetus and progressively become more mainstream. (more…)

Continue ReadingDigital Investments – The New Normal