Intricacies of investment in corporate securities b.v.raghunandan
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Intricacies of investment in corporate securities b.v.raghunandan

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    Intricacies of investment in corporate securities b.v.raghunandan Intricacies of investment in corporate securities b.v.raghunandan Presentation Transcript

    • Intricacies of Investment in Corporate Securities
      Investor Awareness Week,
      ICWAI, Grace Towers, Mangalore.
      February 12, 2011
    • Equity Shares: Nature
      Equity shares of listed companies
      Ready Market
      Long-term Investment
      Meant for Seasoned Investors
      Study of Companies
      Involves procedures
    • King of Investment
      Dividend: Interim, Final and Special
      Bonus Shares
      Market Value
      Stock-Split
      Buy-back
      Rights Issue
      Sponsored Issue
      Strategic Value
    • Qualities Needed
      Control on Emotions
      Building up Rome
      Going against Current
      Understanding Market & Companies
      Disbelief in market sentiments
      Impact of Economic Events
      Mistrust the Obvious
      Total Faith
    • Current Scenario: Problems
      Inflation
      Scams
      Swiss Bank Accounts
      Political Impasse
      Budget Blues
      Infrastructure Slowdown
      Reliance Conflict
      Poor Market Sentiments
    • Getting Started……….
      -opening a bank account
      -opening a demat account
      -opening a trading account
      -selection of sector
      -selection of Companies
      -timing of purchase
      -timing of exit, if unavoidable
    • Selection of Sector
      High Growth Sector: IT, Telecom, Pharmaceuticals, Automobiles, Auto-ancillaries, Financial Services
      Stable Industries: FMCG, Agro-inputs, Steel, Cement, Metals, Banks
      Sunrise Industries: Nuclear Power, Cooling Tower Construction, Railway Wagons and Locomotives, Infrastructure, Power, Ship-building
    • Selection of Companies
      Consistently good performance
      Efficient management
      Rewarding shareholders
      Acquisition spree
      Professional management
      High level of skills in project execution
      Lobbying skill
      Decent governance
    • Factors to be Considered
      Price-Earning Ratio
      Dividend rates
      Earning per share
      Growth in sales
      Auditors Report
      Avoiding hype
      Diversification
      Footprints
    • Sectors to be Avoided
      Highly seasonal
      High operating and huge investment
      Requiring huge size real estate in city centers
      Constant demand for higher level of funding
      Acute competition
    • Companies to be Avoided
      Trading in its shares through investment trusts
      Controversial management
      Poor quality of accounting
      Products of social resistance
      Very long gestation period
      Brokers’ favourites
    • Ignorable Factors
      Technical Analysis
      Samples of Data
      Target and Stop-Loss
      Media analysis
      Market expectation
      Opinions of experts
      Suggestions of fund managers
    • Timing of Purchase & Sale
      Seasonality of market- year, week, derivative settlements
      Going counter-market and counter-sentiment
      Keep investible cash reserves
      Look for market mistakes
      Avoid euphoric moments
      No emotional purchase or sale
    • Avoidable Things
      Borrowing and Investing
      Investing Retirement Benefits
      Temporary Investments
      Distress Sale
      Frenzied Buying
      Betting on a single sector
      Investing only in Growth Companies
      Investing only in shares
      Buying in Heated Market
      Selling in Depressed Market
    • Wise Investor
      Shares Information
      Transparency
      Unaffected by market movements
      Unwavering loyalty (staying invested)
      Designs his own investment objectives
      Avoids derivatives trading
      Avoids small and temporary opportunities
    • THANK YOU