Investing Tip #105: Park Surplus Funds in Short Term Money Market Securities

Tweet9 Share Pin8 Share Email WhatsAppShares 17The money market securities mainly include short-term fixed income instruments, treasuries and money market funds. Although they do not offer high returns, you still earn more compared a savings account. You may keep your money parked here until you get better medium term or long term investment options. If you […]

Investing Tip #106: Buy Companies with a High Sustainable Growth Rate

Tweet13 Share Pin6 Share Email WhatsAppShares 19Buy companies with high sustainable growth rate. It is the reasonable growth rate that a firm can sustain and can finance using internally generated assets and without additional debt or equity. Its growth based on internal resource generation and the stock records consistent growth. If you want to learn […]

Investing Tip #107: Invest in Small Companies Selectively

Tweet13 Share Pin1 Share Email WhatsAppShares 14Some of the smaller companies have the potential to turn into the large blue chips of tomorrow. The small-caps have had greater returns than large-caps. For example small-cap stocks in the U.S. returned an average of 12 % compared to 11% returned by the Standard & Poor’s 500 Index […]

Investing Tip #63: Understand Key Stock Picking Criteria

Tweet14 Share1 Pin3 Share1 Email WhatsAppShares 19Before buying individual shares it’s important that you know, and completely understand, the key stock picking criteria. Broadly speaking, you should consider these two factors while evaluating your stocks: growth and valuation. Ideally, a stock should exhibit high growth and be priced reasonably. Use EPS, P/E ratio and price-book […]

Investing Tip #64: Rebalance Your Portfolio Every Three Years

Tweet14 Share1 Pin2 Share1 Email WhatsAppShares 18To make sure that you’re staying on target with your investing goals you will occasionally need to rebalance your portfolio. Review the proportion of different asset-classes in your portfolio every three years and rebalance them as per your target asset allocation mix. Check that it does not get concentrated […]

Investing Tip #66: Put a Small Portion of Your Portfolio in Offshore Growth Funds

Tweet11 Share1 Pin7 Share Email WhatsAppShares 19In order to diversify your portfolio a little further you can put a small portion of your portfolio in offshore growth funds. The offshore funds invest in some of world-class companies not listed in US stock exchanges.  This enables you to diversify your portfolio in European and Emerging markets. […]

Investing Tip #65: Invest in Funds With Low Beta

Tweet8 Share1 Pin5 Share1 Email WhatsAppShares 15If you’re not very risk adverse you can invest in funds with low beta for a little more safety. Look for Funds with beta of 1 or nearly one compared to the broad market. A beta of less than one indicates that the funds return is less volatile than […]

Investing Tip #43: Avoid Speculation

Tweet13 Share1 Pin6 Share1 Email WhatsAppShares 21Distinguish between investments and speculation. It is advisable to avoid speculation. If you decide to speculate, Benjamin Graham tells us to speculate only with a separate small portion of your capital. Don’t risk money you can’t afford to lose. When you’re investing for the long term don’t speculate! If […]

Investing Tip #44: Private Equity Funds are for High Net Worth Individuals Only

Tweet10 Share3 Pin4 Share Email WhatsAppShares 17Private Equity Funds invest in underperforming companies that have the potential for high growth. They work with the company’s management and make strategic decisions to improve the company’s performance. If the company turnarounds and does well, the Funds exit by selling their stake at a premium and you make […]

Investing Tip #45: Look at the Quality of a Company’s Management

Tweet14 Share1 Pin5 Share2 Email WhatsAppShares 22You can tell a lot about a company by looking at the team who manages it. Phillip Fisher advises to buy the company that have high qualities for management such as  integrity, conservative accounting, accessibility and good long-term outlook, openness to change, excellent financial controls, and good personnel policies. […]