I am evaluating investment in a smallcase. I came to understand about it by reading the FAQs and Capital Mind blog. But still I have a few questions unanswered. So, can someone with prior experience with any paid smallcase help me with these?
After buying a smallcase, must I have to execute it? Can’t I just view the portfolio in that smallcase, and decide what to buy or not? I am asking this because, I may not like all the portfolio stocks in that smallcase and also dislike the fact that smallcases place market orders. I can understand that by doing this, if possible, my performance will be different from that smallcase, but I am okay with that.
While executing a smallcase, can it use existing funds in my trading account, if sufficient, or must I have to add funds from Bank?
If you pick and choose then how will track the performance of the small case ? The very purpose of the small case is the publisher has some kind of methodology to generate superior alpha. If you are signing up only to know what is there inside the case and pick and choose some and then create your own basket then it is different story .
You have have to have enough funds (margin ) in your trading account to execute the trade.
1)Yes, you can pay and choose not to invest in it. Also, you can buy (executed by smallcase) and sell whenever you like, but when you sell without continuing, the returns of the smallcase and yours will be different, obviously.
Also, there is a minimum amount that gets displayed when you are buying, it cannot be decreased. After the first investment amount, you can then do SIP and choose not to pay as much as you did with the first investment amount. (It is like this with Zerodha).
As, the whole idea of smallcase is ease of doing and time, it places market orders, and even then sometimes the complete order does not get fulfilled because of upper circuits etc. And you cannot sell a part of the smallcase, you have to sell it full, exit completely, just like you buy completely. (Zerodha again).
2)When you want to invest, it shows the list of brokers available. In Zerodha, you just need to have funds in your trading account, as with any other purchase. As smallcases are linked with stock brokers, the smallcase accesses funds from the broker account. Should be the same with other brokers too, I guess.
You should also be aware of how smallcase calculates returns. Depending on the portfolio churn, there can be a difference between your realized returns and the smallcase returns even if you execute it perfectly: https://twitter.com/uptickr/status/1395607935909130242
Note: Though that tweet is from May, it is still relevant even now
Thanks Chaitanya,
But stocks bought during Smallcase order execution are just like any other stocks, right? So, can’t I sell selected stocks? I can understand that partial sell option isn’t available via smallcase sell option.
Yes, although the smallcase in its entirety gets executed automatically, they get displayed as normal purchases once the order gets fulfilled, and they get displayed as regular stocks in the PF, even if only smallcase holdings is selected to be displayed (Zerodha again). So, we can sell them individually on our own, but I don’t know how will the returns be calculated for the sold stock/stocks and the remaining smallcase.
Another thing is that, if you already own a stock that is part of the smallcase, and if you sell the smallcase fully or one stock’s whose number of shares that you bought in smallcase, the shares which you had bought before the purchase of the smallcase will be sold, as FIFO is applied. And smallcase takes the sell price and its own purchase price at the time of buying and I think it calculates return on these prices, which is exclusive to the smallcase, and not to the FY P/L because of the FIFO.
Hi Everyone. A newbie investor here. Currently 23, investing since Oct 2020. I had a peculiar question on making fresh investments.
I will start earning soon. I will have investable surplus every month. But at that point, not every company in my portfolio would be at prices that I would be comfortable buying at. So how do you guys go about making investments from your salary every month? Do you have a system or do you wait for a certain amount of correction and let the surplus accumulate?
Asking this because what has happened with me is that I averaged up and then that stock started going down and I see my returns in that company vanish away. So if I have to do this consistently month after month, there has to be a proper method.
My suggestion would be, do not invest all at once, but at the same time do not wait for falls, and invest in companies which you understand, companies of your choice, slowly, so as to gain experience, because all this experience, which even comes at some loss is priceless.
This participation is not just to understand the vagaries and nuances of the market, but also to understand what kind of an investor you are, and what kind of investor you want to become.
Once you are experienced, you can either go all in defying valuations, or wait for a few years, but from what I see, even experienced folk haven’t stopped learning.
So if you want to be an active investor, real participation is the only way, but with the understanding that you are new, and is in the market with the intention of learning and is ready to pay the fee (loss) that you can afford.
This is a journey. What seems like a destination today, might seem just a lap a few years later, with many laps to go.
Can anyone please share what filtering criteria you choose initially to filter good stocks out of 5000+ stocks in screener.in.
I usually filter them by below criteria. Is it correct or I need to change it in order to filter good companies.
What should be our basic check to identify companies for initial analysis
Example :
Debt to Equity < 1 and sales growth (last few years) > 10% and PAT growth (last few years) > 15% and ROE > 15% and ROCE > 20% and free cash flow > 0 and interest coverage ratio > 3 and net profit margin > 5%
I have a basic question in pharma space. So far my understanding is APIs are the intermediates of the medicine like tablets, tonics, injections and ointments and formulations are the end real medicines which people will consume.
Is this right or people even consume APIs directly?
API is that component of the medicine which actually delivers the treatment. People don’t consume APIs directly because nobody sells them directly. Many other things are added to make the final medicine more user friendly i.e. to give it a better taste, shape, color, durable etc.
Syngene International has working capital of 933 cr with sales of 2179 cr and inventory turnover ratio of 13.9 with opm of 31%.
While Eris lifesciences has has working capital of 324 cr with sales of 1212 cr and inventory turnover ratio of 2.95 with opm of 36%
This whole data is.from screener Mar 2021.
My query is, in my view, Syngene international should have less working capital as its inventory turns are high but this is not the case here. Instead Syngene capital is needing more working capital than eris life sciences on comparative basis. Why is this not happening here?
I have just beginner knowledge and this arose with my interest in inventory turnover ratio with belief that high inventory turns should lead to better margins.and.sales.and less working cap requirements.at least in same category of industry.
I am trying to find balance sheet for Intellect design in the results that they declared for the last qtr Q3FY22. I just see PnL statement. Isn’t the balance sheet disclosed quarterly, am I missing something?
Another question I has was, At what point is CWP moved to intangible asset?
1- B/S is provided only Half Yearly and End of the Year
2- When asset is ready to start generating the anticipated benefits (Primarily Management’s Discretion)
The company was founded in 1955. It has long experience in trading of a wide range of products, components, and consumables related to the auto sector; agro-chemicals; as well as industrial and consumer electricals.
Anyone ever studied this company?
Sorry for posting this here but can’t find any place where I can post. It’s for informational purpose only. Please flag if found inappropriate.
From my understanding, they do sell their portfolio in DA to some parties, so that they can get the liquidity from it and they can do further loans. Instead if they let it in their book, they can earn the interest from it right.
One of my friend said they typically sells this portfolio to banks to take risk off their book, but wont buying party know that this is a risky portfolio. and he say they will sell portfolio which has rundown for some time, so that the collateral is much higher than compared at the time of disbursement. In this case, is it wise to sell the low risky run down portfolio to banks and keep other portfolio(comparitively less collateralized book) with them
If you are looking from a long term perspective, it is only profitable and justifiable to buy this stock as this stock in about 3-5 years is going to grow at a huge speed considering developments in EV sector which is only happening for the good. Furthermore, considering short term you may have a different opinion as market reacts differently to each situation concerning EV. Disclaimer: I myself have bought this stock at 500.4 levels in October 2021 and i am holding it as a long term opportunity.
