 Economy – VISHAKHA & SUYASHA

o GST update
o Asset Monetization
o Bad Bank
 International - AJINKYA
o US Tapering Issue
o Covid Recovery Updates
o Cryto Trends
o Green Funds
o China Evergrande Issue
 Markets -
o Idea - RONIE
o PLI _for auto - RONNIE
o IRCTC- New company creation
 M&A IPO -
o Zee - ronie
o Byjus
o Eureka Forbes
 Personal Finance - ANAND
o Alpha Beta Method of Stock Picking
o Other methods (To be searched)

OTHER THOUGHTS:

Modules on

 Fundamentals
o Intro post -
 Technicals
 Price action
 Finfunda –

Cover page to be done

Vriddhi

 Bank
 Infra
 FMCG
 IT
 Media
 Pharma
 Energy
 Auto
 Metal

Finworld – Pre cases …drive link..quiz ques level

Fintalk – drafting message

- Learn App
- Vishaka

The 100 minus age rule:

With the pandemic increasing the number of retail investors in stock market, it is risky to put all your
money into it. As equity returns are market linked, any downfall in the market can reduce your
portfolio by a significant amount. Hence, it is important to do a proper asset allocation. Asset
allocation is the process of distributing money into different asset classes which is one of the difficult
decisions in managing personal finance.

Hence, there are some thumb rules to avoid this confusion. One such popular thumb rule is the “100
minus age” rule which states that your portfolio’s percentage of equity assets must be equal to the
difference between 100 and your age. For example, if your age is 29, the rule suggests you invest
71% of your assets in equities.

The basis of this thumb rule is that with increasing age, people tend to become risk averse as they
would want to have capital security.

 However, on the flip side, this rule generalizes the risk appetite of people just on the basis of age.
Other factors such as planned time to reach goals, return requirements, etc. Hence, it is important to
rebalance the allocation as per one’s changing goals.

Read More

Alpha beta

Few years back, people used to have more time to analyse and invest but no capital. But now the
situation has reversed. For those who are aligned to a buy and forget approach owing to fast paced
lifestyle, the financial risk ratios “Alpha” and “Beta” give an easy way to analyse the stocks and the
portfolio performance.

These financial risk ratios are both compared to a benchmark index such as the S&P 500 which
provides exposure to the market risk premium.

Beta measures how volatile a stock or portfolio is relative to a benchmark index, using historical
market data. Beta is based to 1, where a value of 1 means an asset or fund will move exactly in line
with the benchmark’s gains and losses. Anything more than 1 suggests the fund tends to be more
volatile than the benchmark and vice versa.

Alpha measures an asset’s return relative to a benchmark. Based at zero, a positive alpha value
indicates that an investment has yielded returns which have beaten the benchmark – in other words,
it can mean the asset’s volatility risk has paid off.

Read More