Tag: #staytuned

Rule#7 Pitfalls – If you want to invest in Indian markets, start NOW

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Dear Investor,

One of the most difficult skills in investing is called Timing the Markets. My experiments with this have pushed me to the conclusion – most of the time, we should just avoid timing the markets. More important than this is Time in the Markets. Start right away and allow the markets to grow your wealth. We can earn average and even above average returns by just investing in good companies for longer periods.

Markets work in waves or cycles, that are quite unpredictable. And in fact the hype and enthusiasm to invest in the markets peaks around the time they are at new highs. A large number of new investors are then disappointed at their immediate returns and shy away from it.

Many well informed potentials also promise themselves, and their advisors, that they will start investing when the markets bottom out, when everything is cheap. This really never happens. At such times, fear is highest, and most people are worried about (notional) and real losses. Time flies, and that window of opportunity slips by.

Instead, it makes more sense to start now, yet keep some funds available (dry powder) for additional investments if the market falls. Or if a great new opportunity presents itself.

Most of the time, I find myself fully invested, and if a great opportunity presents itself, I sell the lower potential stock to buy the higher potential one. Thus improving my portfolio.

Outlook: Today India is the fastest growing large economy in the world. We are on the cusp of many years of good GDP growth and the economy is both producing and consuming more and better. Investments in infrastructure are bearing fruit. There are few shortages to be seen. At a Nifty PE of 21.6 times TTM, valuations are just above the long term median of 20.6 times. I am quite optimistic.

If you are an individual investor, we at JainMatrix Investments, as a SEBI registered Research Analyst firm can help with your wealth building. Sign up for our services, and to find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Rule #6 Pitfalls – To be a good investor, do things differently

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To paraphrase a popular saying, “If you do the same thing as everyone else, you should not expect different results”.

For an investor this means, you have to invest differently, in order to get superior results. At JainMatrix Investments, we take a counter-cyclical approach to get superior results.

  1. When Covid infection struck in March 2020, just like everyone else, we were clueless on the new infection, its impact on health, daily life and the economy. The 40% fall in markets emphasized the panic among shareholders.
    • However by following the news reports, we formed an opinion on the impact, and reported
    • March 2020 – https://jainmatrix.com/2020/03/
    • May 2020 – https://jainmatrix.com/2020/05/
    • By May-June, we had decided that the impact will not be so severe, and investors need to return. Investments made in the next few months did very smartly over the next 1 year
  2. When demonetization was undertaken in 2016, it surprised everyone, and investors too reacted negatively. This banking event however was understood by us as a short term cash shortage. Thus we felt the market fall will unwind once enough notes were printed.
  3. In the stock markets Knowledge is Power, and investing is easier with this Knowledge. Going counter cyclical has been the method we follow when we are convinced of the situation. It may be natural to panic in such situations as an investor, but if we can overcome this and instead treat it as an opportunity to BUY at low valuations, we will benefit.
  4. Both these above events were market – wide, and our stand was successful. However sometimes there can be company specific events too, and it may be profitable to invest in a troubled firm, if one is confident that this is a short term event, likely to reverse soon.
  5. However, it may be high risk for individual investors to take such investment decisions.

Here’s where JainMatrix Investments, as a SEBI registered Research Analyst firm can help. Sign up for our services to help in your wealth building journey. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Rule #5 Pitfalls – Do you have too many stocks in your equity Portfolio?

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Individual direct Equity Investors should not to have more than 30 shares in their Portfolio.

This is my thumb rule for Individual Direct Equity Investors. Why? More than 30 shares, and the investor will have difficulty in following the firms in terms of results, events, updates and news. This is in addition to price and profits. Investors also should not miss or forget the stocks they own.

I myself have about 36 shares in my personal portfolio. And I am a professional. For an individual investor, the fewer the shares, the easier it is to track the portfolio.

The investors Buy decision is easier. Investors tend to quickly collect more firms in their portfolio because of this. The Sell decision is hard for several reasons.

Is the share currently in profit or loss? Is this gain sufficient? Is the firm’s outlook good or bad? Is there a better idea that I can reinvest in?

Indecision may result in a bloated portfolio with too many stocks. The investments then get frozen as the capital is stuck in these shares and the sell decision is delayed.

Is this suggestion cast in stone? Not at all. It may suit some investors to have 50, even 100 stocks in their portfolio. If they are able to manage it. Others may limit this to just 5-10, and run a very concentrated portfolio.

JainMatrix Investments services provides 21 recommended shares in 3 baskets based on our in depth equity research. This is immediately useful both to new and experienced investors. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Rule #4 – To Win Big in Investing, you have to Deal with Losses

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Early in my investing career, a loans expert asked me, “what are you going to do, if the firm you have invested in suffers a large share price loss”?

No one invests to lose money.

But investing in equity markets is different from giving a loan or buying a product from Amazon. If you buy a product on Amazon and it is defective, you return it and should get a refund. When you give a loan, you try to ensure it is repaid to you in full. If repayment is interrupted, you try to understand why and encourage compliance.

In Direct equity investing, one has to expect some amount of losses. If you do a lump sum investment in 10 companies of an equal amount, the returns in a 5 years period will look something like this. 5 companies will be loss making for you. 3 will be barely giving average returns. But 2 should give you outsize returns, of 5-10X. All this together should give you Sensex average or Sensex plus returns.

The right thing to do when you see an equity investment fail, is to exit fast and reinvest in the stronger firms. Exit the losers and reinvest in the winners.

To the loans expert, my answer is, “book your losses, and lose the battle, to win the war”.

Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Rule #3 Investing timeframes

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Dear investors,

One of the biggest hurdles for Investors is patience.

Fundamentals based investing is about identifying mismatches between Share price of a company and value lying within the company. This value may be created by 1) Expected growth of the company or business revival, and 2) a share price correction or fall, due to an external event.

In both these scenarios, the mismatch may take some time to unfold, or be recognized and understood. An Equity Research on a company may identify the mismatch, but the firm may still be far from the value unlocking.

Rule #3 – Investing based on Fundamentals should be done with minimum timeframe of 2-3 years

All fundamentals based investing is prone to unexpected news, internal and external, and business cycles. Sometimes we can be lucky, and get quick returns from our investments. Most other times, its worth it to wait for value unlocking, even using a SIP method of investing, where we systematically buy the shares of a target company based on the Equity Research recommendations.

Another aspect I have come across is “triggers for investments”. Here the analyst identifies a target company, but waits patiently for the triggers to be in place for share price revival, rather than investing from earlier. This however is fraught with unknowns. Will we recognize the triggers in time? Will we be able to buy at this time?

Thus its better to give investments a 2-3 year timeframe to unlock value. Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Join us for a Q&A session on 10th June. Register for this on https://forms.gle/ZPsHbz8h6dfVE99u8

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Rule #2 – Long Term Equity Investments must not be funded by loans

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Dear investor,

Long Term Equity Investments must be made using your savings or available cash surpluses.

While equity can give very high returns occasionally, this is not predictable. The volatility in the asset class means that there can even be several years of underperformance followed by a reversal. Taking a loan for such investments can place payments pressure on the investor, and cash flow issues.

In my experience the pressure of a loan EMI payment itself can result in wrong equity investment choices.

Long Term Equity investments are best done with savings from salary or business.

This is quite unlike the asset class of Real Estate. Home loans are common, and loans can certainly be taken to fund such an asset purchase. Here the home value is frozen at purchase and the loan can help fund this out of the individual’s future earnings.

Long Term Equity investments are best chosen carefully, and as stated in Rule#1, made in a portfolio manner. Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

CONTACT US

Or explore on this website

OFFERINGS

Comment, leave a reply below, and like and share this post with your friends.

Join us for a Q&A session on 03rd June. Register for this on https://forms.gle/ZPsHbz8h6dfVE99u8

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.

Pitfalls – Rule #1 – Overinvesting in a single stock

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JainMatrix Investments shares Pitfalls – Rule #1 in the video below

Dear Investor,

In my Research Analyst advisory practice, I often found that investors can fall in love with a particular stock, and overinvest in it, rather than taking a basket or portfolio approach. This exposes investors to this risk.

In the equity markets, there is always a small probability that any one company can be negatively affected by an unexpected event. It could be a business cycle downturn. It could be a fire in a factory. It could be raising of interest rates by RBI. Or a random or unpredictable event. Some examples of sudden falls can include Yes Bank, IL&FS Ltd., Vakrangee Ltd, Future Retail, etc. These companies suffered a sudden fall in recent years, and surprised many investors, sometimes after many years of doing very well.

The hedge against this for an investor is, to invest in a basket or portfolio of stocks at a time.

Over a period of time this basket or portfolio may have widely different results in terms of individual performances. Some shares may appreciate very well, while others stay flat or worse. But at least the single stock investment risk is not there.

If chosen well, this investment in a group of stocks can be a great step in your wealth building process.

Here’s where JainMatrix Investments services can help you. To find out more reach out to us on

Contact Us

Or explore on this website

Offerings

Comment, leave a reply below, and like and share this post with your friends.

Join us for a Q&A session on 03rd June. Register for this on https://forms.gle/ZPsHbz8h6dfVE99u8

Regards, Punit Jain

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.