What does negative reinvestment rate signify?
Hello, In the case of liquidbees debt fund what happens after we hold for example around 100 units for 2 -3weeks and sell 100 units after this time ,my doubt is whether the fractional unit which remains in our account gets interest on it or not.
Hi, Does anyone know of any paid/subscription-based databases where one can access historical financial and operational data of companies? Iām aware of sites like Value Research and Moneycontrol that provide some annual and quarterly financial info, but Iām looking for more detailed data going back 10-15 years. Thanks!
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Ace Equity and Capitaline
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Hi Vishal,
The perfect answer is expected from someone having deep knowledge about arbitrage funds operations. I can try as per my understanding:
Negative carry means rate of return < cost of capital. Chiefly, an arbitrage fund is expected to deliver returns at least around long term average ~ 6.5-7%. Here, negative carry might mean that funds are facing challenges in generating return to this order. Generally, when arbitrage funds doesnot find arbitrage opportunity, they invest the sum in debt to deliver at or above par returns. In a falling interest rate scenario, they might be facing difficulty to meet investor expectation due to dearth of opportunities (derivatives and debt) under their investment mandate. Very recently, SEBI has also imposed restrictions on index derivatives, which has turn the tide towards stock derivatives, resulting in falling of few scripts in F&O ban (open interest hitting 95%).
Short selling is banned for mutual funds, presumably they need to hold securities before selling, however a SME can throw more light on it.
Parking funds in arbitrage fund is a function of timing of fund requirements and individual tax profile. In general, one should invest in arbitrage funds with horizon of more than an year.
Unfortunately, I donāt provide advisory services, would be great if you could consult your financial planner or advisor to suggest a fund depending upon your investment objective.
Hope, my response is helpful.
Regards,
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Very helpful, thanks so much for your detailed response!
Thanks a lot, Basu, have looked at Ace Equity, will also check out Capitaline!
I posed some more of my though process to this discussion on the Avanti Feeds thread.
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A company can trade at any price, it is dependent on the market mood. In early 90s, there were lots of companies which traded at premium or discount to face value.
hiā¦just a bit of huidance from youā¦is the book mentioned āpeaceful investingā worth it? for a person from a non finance background.
How do you see through all of this? Which books can I pick up to understand the accounting side? Do you need to be a CA, 'cause Iām not. I just did CFA L1 with an undergrad in management (with fin as a specialization).
Well you donāt need an accounting degree for this. Instead of reading books, I will recommend actually doing these computations for well-known companies. Data is freely available from screener and annual reports. You can look at a few examples from this website.
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I see many companies have a line expense called maintenance of plant and machinery in their other expenses section.These are all real expenses recognized by the company for physical maintenance of their PPE.These amounts are often quite substantial in relation to yearly depreciation .However ,people say that depreciation is a proxy for maintenance and allows you to account for maintenance capexā.If the maintenance of the plant is already done,then depreciation is just a āfictionalā expense created for tax benefits and the company in reality pockets earnings+ depreciation every year rather than earnings alone.
Can anyone clarify this?
Maintenance capex is over and above what is debited to P&L Account as repairs and maintenance. Letās say in case of a truck operator, repairs and maintenance will include expenses incurred in servicing such as labour charges, consumables like oils & lubricants etc.
Maintenance capex is what is incurred just to maintain the existing capacity of the business, such as replacement of an old truck which has come to the end of its useful life by new one. Maintenance capex is debited to Gross Fixed Assets and you will get a rough idea of it by looking at the āAdditionsā column of the Fixed Asset schedule. Depreciation is considered a proxy for this.
Hope this clarifies.
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Hi, I just wanted to ask that whenever I calculate the fair value of a share, in my opinion, by using the consolidated statement of the company. But recently, I saw that Bajaj Finance is a subsidiary owned by Bajaj Finserv. So how do I calculate the fair value as both are listed, and Bajaj Finservās primary income comes from Bajaj Finance?
Fair Value of a Stock:
There are many ways to calculate fair value and as of now I am not capable of calculating myself. Is there any online resource which give me an idea of fair value of a stock. I know one : morningstar.
Any ideas
I try to understand the company and try to use my analysis and then use morningstar or yahoo finance to match my analysis and see what everyone is estimating. Given that, I checked morningstar, and it showed the fair value of Bajaj Finserv around 6100. I want to know how they came to this conclusion.
How do you find what everyone else is estimating ? I donāt know any forum or website for that other than morningstar and you mentioned yahoo.