Infinadvisor

01/01/2018

Happy new year all group members

28/09/2017

What is Bottom Fishing

Bottom fishing is an investment strategy in which investors seek out securities whose prices have recently dropped and are considered undervalued.

Example

Investors that engage in bottom fishing, called “bottom fishers,” hunt for securities that they believe are undervalued in the market or that recently have experienced a significant price drop. If these securities are bought at what is effectively a discounted price, they will gain value and make a profit once the price recovers.

si ts a stock whose price fell from 100 per share to 60 per share over two days. The investor researches the issuing company and finds no fundamental change for the drop in price, so he determines it was due to market forces. He buys ten shares for 600. Over the following week, the price steadily returns to 100 per share. The investor then sells the ten shares at this price, realizing a profit of 40 per share, or 400 total.

Effects

It is clear that bottom fishing is an attractive short-term strategy for boosting portfolio value or for making a quick profit during periods of volatility in the market.

However, bottom fishing can be risky since even the most experienced investors find it impossible to account for all factors that affect market prices. Also, it is not always possible to determine if a price decline results from investor behavior or from some fundamental change in the issuing company.

21/06/2017

Five lessons to learn

Lesson #1
Keep a cap on your discretionary expenses.

Too many ‘extra runs’ given by Jasprit Bumrah helped Pakistani team to set a big target for India. Similarly avoid making unnecessary or ‘extra’ expenses which may set our financial goals too heavy to achieve.

Lesson #2
Avoid impulse buying.

Early wickets of opening Batsman Rohit Sharma and skipper Virat Kohli put Indian team on big trouble and ultimately they could not achieve the target set by Pakistanis. Many times we start for investing for a goal but very soon we have an urge to buy something attractive (like costly mobiles, luxury Cars, jewellery etc.) and we withdraw that amount to pay for our luxury. That makes our goals more difficult to achieve.

Lesson #3
Start early and invest regularly.

India’s target was 339 in 300 balls that are some 1.13 runs per ball. Does it seem to be very challenging task? If singles could be scored from the very first ball with occasional boundaries, the target would have been easily achievable. Just like that, start small investment with your first pay check and continue till the end of your financial goals. Your effort should be to be disciplined and consistent and leave the rest on power of compounding. You will notice how comfortably you are on your financial goals.

Lession #4
Have a protection for your life and health

Jadeja is being blamed for Hardik Pandya’s run out. He was so focused on his own running that he couldn’t see Pandya was coming on his way which leads to fall of the wicket of highest scorer from Indian team.
Likewise many a times we are so busy with our profession that we forgot to look at our family and take adequate protection for them. One sudden death of the earning member or a critical health issue of any family member could jeopardise your financial goals completely. Take a term and health insurance cover to guard your family from falling in any financial mess in case you are not around.

Lesson # 5
Build a partnership, with your advisor.

It needs two to tango! One of the big reasons why India failed to achieve the target is that no two batsmen could build a robust partnership. History shows, a winning team mostly represented by marvellous partnership from any two batsmen.
Build a long term mutual relationship with your advisor based on trust and compassion. He can guide you best in the ups and down of financial matter and at the end both of you can come out as a winning team in the lifetime tournament of wealth creation.

Wish U A Happy & Winning Investing...

19/06/2017

07/06/2017

EMI is wealth deteriorater, specially where using it for consumption.

Invest to build wealth for safe financial future.

16/11/2016

An investment in knowledge always pays the best interest.

15/11/2016

A man who both spends and saves money is the happiest man, because he has both enjoyments.

14/11/2016

In this world it is not what we take up, but what we give up, that makes us rich.

12/11/2016

A wise man should have money in his head and not in his hear.

11/11/2016

Emotions are your worst enemy in the stock market.