Last Updated on Dec 30, 2021 by Aradhana Gotur
Table of Contents
1. Top Penny Stocks in India in 2021: Shares To Buy Between 1 To 10 Rupees
Ultra penny stocks are ‘win or bust’ bargains for you. On the upside, they have the potential to yield multibagger returns within a few trading sessions. While on the downside, they can cause a severe dent in your invested value.
Stocks trading at a particularly low value and having a small market capitalisation are called ultra penny stocks. These stocks are usually priced lower than Rs. 10 and don’t account for substantial trading volumes. Even a sizable spike can trigger the circuit in ultra penny stocks on the upper and lower sides.
Limited available information accompanied by factors like dried-up liquidity, bigger bid-ask spread formation and fewer investors, makes ultra penny stocks a high-risk investment. Moreover, fundamental insights of ultra-penny stocks are scarce, and most of them turn out to be fundamentally weak, causing the investors to pull out their stakes.
Continue to read how to pick the best ultra-penny stocks under Rs. 10 and a list of top stocks to buy under Rs. 10.
2. It’s Raining New Filters on tickertape!
With over 3,000 stocks listed on NSE, deciding which ones to invest in can be challenging. One of the easy ways to find stocks to invest in is to filter them using certain parameters. A short-term investor would prefer technical indicators, whereas a long-term investor would want to judge a company by its business profitability metrics.
In addition to the existing 200+ filters, we added 46 filters to our intelligent stock Screener to help you get near-perfect results. The new filters belong to various categories such as profitability, ownership, price-volume, broker ratings, technical indicators, and so on.
Below are the new category-wise additions:
Financial ratios
1. Inventory Turnover Ratio: Cost of goods sold of a company divided by average inventory over the past two financial years
2. Asset Turnover Ratio: Total revenue of a company divided by average total assets over the past two financial years
3. Days of Inventory Outstanding: Average number of days a company holds inventory before turning it into sales
Continue to read the remaining new filters that can give you a better screening experience.
3. These New Tools Make Evaluating Mutual Funds Better
At tickertape, we are continuously on the lookout to make your investment analysis on our platform better and more meaningful. We strive to provide quality data and intuitive tools to analyse different assets. In line with this, we recently released a new set of features on our Mutual Funds Pages. Let’s look at these and how they can refine your Mutual Funds analysis experience.
1. Fund manager information
One of the popular reasons why mutual funds have gained traction is professional management. Every scheme is managed by an expert called the “fund manager”, responsible for allocating investors’ money across various underlying instruments such as stocks and bonds. Hence, they are ultimately responsible for the returns you earn from your Mutual Fund investments.
Therefore, evaluating the fund manager’s experience and performance becomes essential when choosing the right mutual fund to invest in.
a. One, the Overview section on our Mutual Funds Pages. Here, you can find basic information like the fund manager’s name, years of experience in the financial markets, and the total number of funds they have managed to date.
b. If you want to further dive into who manages your money, we have introduced a new dedicated Fund Manager tab. Here, you can further dive into the credentials of the fund manager managing your money. You can see details like the total AUM managed by the fund manager across all funds, their educational qualifications, their experience, and the details of the other funds they have managed.
Continue to read other tools that make evaluating mutual funds better than ever.
4. What Is the Intrinsic Value of a Stock and How To Calculate It?
The price at which they are listed on the exchanges may or may not be fair. If, for example, HUL is in high demand because of its recent expansion plans, the stock price may be inflated because scores of investors are looking to add it to their portfolio. At such a time, if you want to purchase the stock, you would be paying a higher price for it.
However, paying a fair price for a stock gives you a better return on investment. But the question remains: how to ascertain whether a stock is commanding a fair price or not. This is when the intrinsic value of stock comes into the picture. That said, the intrinsic value is its fair value as far as you or the analyst is concerned.
How to calculate the intrinsic value of a share?
There are several ways of ascertaining the intrinsic value of a share. In this article, let’s look at:
- Dividend discount model
- Discounted cash flow analysis
- Relative valuation method
Continue to read how to ascertain the intrinsic value of stocks using the above methods.
5. Fundamental Analysis Of Stocks: Definition and How To Analyse Stocks
If you are looking to bag some multibaggers or invest in shares on a long-term basis, it is imperative for you to use multiple lenses to gauge the company and its potential. You cannot depend on the daily changes in its stock market price. Your purchasing decision should come from something far more concrete. There are several methods that most long-term investors use in determining if a particular stock is worth their purchase. Fundamental analysis is one such method.
Fundamental analysis refers to a method that uses several relevant economic and financial factors to evaluate a share’s intrinsic value- the fair price as far as the analyst is concerned.
There are three underlying assumptions of fundamental analysis:
1. The market prices of stocks fail to reveal an accurate picture of a stock
2. The value reflected by quantitative and qualitative analysis portrays a far better image of the same
3. The share market will automatically discover the actual value of the stocks in the long run
In this case, instead of opting for a series of standard calculations, analysts opt for several complex models to find the stock’s actual value. In addition to the assumption that stocks reach their true value in the long run, the investor can use fundamental analysis to make significant gains over time.
Continue to read how fundamental analysis is different from technical analysis, types of fundamental analysis, and various tools you can use to evaluate stocks.
Granted, investing is not like taking a walk in the park, especially for novice investors. But with a fair understanding of the market, calculated moves, and experience, come handsome returns. #DimaagLagana hai toh investments mei lagao. And while doing so, keep your fears at bay kyunki #tickertapeHaiNa.
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