Investment Valuation in India

There are various constraints that we come across while making investment decisions. Some of them are: Liquidity:  Liquidity constraints refer to the need of the investor to convert quickly into cash at a price that is closer to the fair market value of the investment. Usually, if an investor purchases a long term asset such as real estate, these are termed as illiquid assets as it usually takes longer to sell such assets and get cash. In case of immediate need for cash, one may have to sell such illiquid assets at an unfavourable price. On the other hand, marketable securities such as Money Market Funds are termed as liquid assets which can be sold and converted into cash almost any time. Investment Horizon: Investment Horizon (also known as Time Horizon) refers to the planned time between making an investment and redeeming such investments. A person (e.g. at the age of 25) would usually have a longer investment horizon if he plans to investment for retirement, daughter's...

For a long time now, Strategy has become a buzz word in management. Managers have been deploying various practices in the name of Strategy.  Flexibility to respond to changing business environment, benchmarking competitors' best practices to achieve best practice for self, cost effectiveness through various cost management approaches such as outsourcing and so on. Unfortunately, what should be called as operative effectiveness is termed as strategy and has thus failed to translate into sustainable profitability options.  Operational effectiveness is necessary in business to ensure sustainability but this is often temporary. Operative effectiveness means performing the business functions - functions relating to creating producing, selling, delivering products and services - faster, cheaper, with fewer inputs and less defects as compared to peers or competitors. While it is important for businesses to attain operational effectiveness, these can be easily emulated by othe...

Hi, Check out this link on Accountants' Adda where in I explain about the Lock in period for Tax Saving SIPs in India. Accountants' Adda | Lock In Period for Tax Saving SIP

4 things to look for in an investment New investors are often interested in purchasing a company's stock but are not sure where to begin. These four characteristics should serve as helpful guidelines in your search for a good investment. 1. What is the price of the entire company? When doing research, it is important that you look at more than just the current share price - you need to look at the price of the entire company. The "cost" of acquiring the entire corporation is called market capitalization (or market cap for short) and is frequently referred to by financial professionals. In short, the market cap is the price of all outstanding shares of common stock multiplied by the quoted price per share at any given moment in time. A business with one million shares outstanding and a stock price of $50 per share would have a market cap of $50 million. This market capitalization test can help keep you from overpaying for a stock. Consider the case of eBay and General Mo...