wealthymatters

Stocks To Capture Rural Prosperity

October 7, 2013 Leave a comment

A short drive out of our cities will show you that prosperity and modernity are reaching our villages too.If you wish to benefit by this increase in prosperity in rural areas you could accumulate the stocks of the following companies:

1. Hero Motocorp : Hero is the strongest 2 wheeler brand in rural areas and has 5000 distribution points in rural India,the highest in the industry,It derives nearly half of its sales from rural areas.

2. Emami : In the consumer industry,Emami has one of the highest exposures to rural markets.Around 60% of its sales and 50% of its profits come from here.

3. Maruti :1/3rd of its sales comes from rural areas where it has a strong brand and network.

4. Mahindra & Mahindra : The farm equipment segment (tractors) represents 40% of the topline.

5. M&M Fin Services : One of the largest vehicle finance companies,M&M Financial Services focuses on the rural and semi-rural areas with a majority of its 675 branches being located in such areas.A rise in rural incomes leads to greater demand for tractors and passanger vehicles.

6. ITC : The company makes 35-49% of its sales from the rural market.It is witnessing the rural consumers moving up the value chain in cigarette category.

Filed under Paper Assets, Tool Kit Tagged with Emami, Hero Motocorp, ITC, M&M Fin Services, Mahindra & Mahindra, Maruti, postaday, rising rural incomes, rising rural prosperity, share investing, stock investing

National Debit And Credit Card Stats

October 6, 2013 2 Comments

Following are the stats w.r.t debit and credit cards.How do your habits compare with that of the national average?

Filed under Tidbits, Tool Kit Tagged with average annual spend per credit card, number of credit cards in India, number of debit cards in India, postaday, spend per debit card

Delhi’s Billionaire Zone

October 5, 2013 Leave a comment

Delhi’s billionaire’s zone is a region which includes Aurangzeb Road, Amrita Shergill Marg and Prithviraj Road.Should you be curious,here’s a map to go sight-seeing with, in the locality.

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Filed under Tool Kit Tagged with Amrita Shergill Marg, Aurangzeb Road, billionaire zone, postaday, Prithviraj Road

India’s Top Veggie Billionaires

October 5, 2013 Leave a comment

Filed under Tidbits Tagged with Anil Agarwal, Anil Ambani, BM Munjal, famous vegetarians, GM Rao, Kumar Mangalam Birla, Lakshmi Mittal, Mukesh Ambani, NR Narayana Murthy, postaday, Rahul Bajaj, Venugopal Dhoot

Stocks Are Not Always The Best Things Ever

October 4, 2013 2 Comments

A common myth in financial advisory circles is that in the long run,stocks outperform equity,so a person should have equity in their portfolio.

So what would your fate have been if you had no equity in your portfolio?Take a look at the graph below.It assumes you invested Rs 5000 in an FD or in the SENSEX in 1992.

Sensex vs FD returns

Now you know how much you might have had 20 yrs from then either way.The figures will change,if you consider different start and finish years.But being certain that your capital is safe,that you are assured of some positive returns at least and being able to predict how much you might have at the end have some value in themselves.and in these years at least you might not have done too badly if you kept off the stock markets.

But if you can pick stocks,there is nothing like it,Individual stocks could have multiplied to lacs of rupees.You will hear these stories from some of the front benchers in various AGMs. And interestingly,if you had invested in UTI MasterShare,India’s oldest diversified equity mutual fund,you might have seen about a two lacs. So a SIP in a middling diversified equity mutual fund is a good compromise.But mind an index fund wouldn’t have helped you so.As we don’t have too many mutual funds in India with such a long history,its hard to say if the category average of diversified equity funds might have come down if there were more data points.Also in case of equity you will never be able to predict in advance what your holdings worth will be at some time in future,

Stocks are good in their own way if you wish to build wealth.But don’t be pressured into investing in them if you haven’t financially secured all your life goals.