How can material cost be negative. It’s a real estate company
Sir search bar ni dikh rha hai. Value picker forum pe.
It is visible. It is in the same place, and working.
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I have an interesting, but at the same time, Very scary idea. I am very long on Gold and want to maximise my returns, but due to lack of capital, this made me think if I know that gold is about to give a very great rally in Near coming future, how do I get most out of it? So should I use futures of gold, which lets you take the leverage for your position? for example in the very basic terms. It is the same asIf you put ₹10, you can buy the asset which is of hundred rupees. do share your POV, so it helps me to take-or not my positions accordingly.
While there is a possibility of gold giving good returns from now on, depending upon a lot of global and local reasons, it may not give good returns too, there is always an opportunity cost with allocating more to gold. And as gold is volatile, despite the leverage, if it does not move as per our move, there is a chance of loss too, so can you afford that? You can observe the movement of the price for a few sessions and can do.
I buy ETFs to diversify, but sell them depending upon market conditions, and I participate in futures occasionally.
The thing you said, opportunity cost of the money and the down side, my take is that i am very much comfortable taking hit on a globally considered ‘safe heaven asset’ and it makes me diversified in the sense that iam very heavily exposed to equity and no other asset classes.
If there’s downside we’ll wait if it consolidates then it provides stability to overall portfolio and if it grows well and good!!
If a company is getting Demerged . will there be a window as such . only those who own stocks before that date get benefits of demerger . Or even if shares are in T+1 state or T+2 state share holder gets the benefit of demerger
With ETFs, we are diversifying and can wait if the price falls, but if we want to participate in futures, it means we have to take losses, and we are diversifying just until the contract expires. And in your case, if you want just diversification, then you have to allocate to ETFs in proportion to your equity PF, if the ratio of gold:equity is 1:10, it may feel inadequate, but if it is 1:4, it brings stability but to allocate 1/4th to gold could be opportunity cost if the equity portion is bigger. And some more diversification can be achieved with silver, as it is also available as ETFs. And there is always the choice of buying physical gold and silver.
Actually here we are looking for maximising the returns by taking relatively safer bet and the thing about expiry is we just roll over our positions when the time comes, and if we have to bear losses we will just keep putting in margin money and wait for the up move, what say?
Diversifying and bringing some stability to an equity-heavy PF by adding gold through ETFs or even physical gold, and participating in futures to make some profit are different.
With ETFs, there will be a chance of recovery if we wait, but it can be a long wait. With futures, there will be absolute loss at the end of expiry, and if we add more to recoup our losses for the next expiry, we can lose more if our view is wrong. And the toughest part is the fall that can happen in the middle of the duration, so more funds will be required. Nothing will teach FnO better than participation, so if you are inclined, you can do it with Mini or Guinea and experience, if you have not already. My experience did not feel worth the effort, so I invest and trade in ETFs.
Cost to carry of futures (i.e., the interest rate of leverage) in future market is considerably high - almost 10 to 15% per year - if you add cost of rollover, opportunity cost of cash held for margin requirement, transaction charges, taxes etc. combined.
Using futures to leverage over long term is usually not worth it and comes with considerable risk. You would have to get the timing incredibly right for it to make money.
Sorry sir i am very new to this i didn’t know they charge you any rate of interest even after you have enough cash margin i dont think so that they doo correct me if iam worng and sir rollover cost will be recovered when the asset starts to run because timing is one thing that biggest of big investors cant also win.
Let us say if you want to invest 1 crore in any asset (gold, stocks, land etc.), there are basically few ways to do it - use your money, use borrowed money or the combination of both.
Using some “borrowed” money to invest is what is called as “Leverage” in investment terminology.
Leverage can be done in numerous ways - like taking personal loan, bank loan on asset, using F&O etc.
There is no way to “borrow” money to invest without paying some “interest” for the privilege of borrowing. Hence, leverage is good only if you can earn more returns from the invested asset than the cost of leverage.
Using F&O, there is no explicit interest stated like when you take bank loan. But there is still a cost of leverage - which usually comes down to 10-15% per annum.
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Sir can you please elaborate on your last paragraph where you said bank loan and leverage at the same time which is also of 10-15% of rate??
Sir please breif about Depreciation on stock if increasing.
Do companies that demerge have a draft red herring prospectus (DRHP)? If so, where does the public get to access it? If not what other official document is provided with the demerge and capital allocation and all other details?
I was searching Nuvama Wealth Management DRHP and was not able to source it on NSE/BSE or even SEBI website.
Zero schedule because of de-stocking?. pls explain
“Zero schedule” typically refers to a situation where production or manufacturing schedules are halted or minimized. This can happen due to “de-stocking,” which means reducing inventory levels, often to manage costs or respond to lower demand. In this scenario, companies stop or significantly reduce new production because they are using up existing inventory instead of making new products.
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