Saral Gyan team celebrates this festive season offering discounts upto 30% & valuable freebies. Click here for details.

SARAL GYAN DUSSEHRA - DIWALI OFFER 2019

MULTIBAGGER SMALL / MID CAPS & LONG TERM INVESTING REPORT >>>  FREE DOWNLOAD

TECHNO-FUNDA (POTENTIAL MULTIBAGGER) STOCK 2019 REPORT >>>  FREE DOWNLOAD

PAST PERFORMANCE >>> HIDDEN GEMS, VALUE PICKS & WEALTH-BUILDER >>>  VIEW / DOWNLOAD

SERVICES:        HIDDEN GEMS    |    VALUE PICKS    |    15% @ 90 DAYS    |    WEALTH-BUILDER

SUBSCRIPTION:        FREE SUBSCRIPTION      |      PAID SUBSCRIPTION     |      PAYMENT OPTIONS

Monday, October 14, 2019

Grab eBook - How to Grow your Savings? for Free!

A complete guide to help you ensure, you get the best returns on your investments from equities.

This e-book will provide you important & relevant information supported by facts & figures to help you grow your savings by investing in stocks to succeed:

Key Mantra’s:

1. Adopt discipline approach for Savings
2. Find out the ways to get passive income
3. Set your financial goals & start Investing
4. Do invest in equities for long term

Getting the most out of this book is simple, “How to Grow your Savings?” requires practical approach. Execute your learning experience in your day to day life by managing your finances effectively and achieve your long term goals.

Traditionally, Indians are Savers. The savings rate is as high as 30 percent. If not a direct savings in the bank, the money goes into a fixed deposit, gold or real estate. That trend might change soon if more people invest in stocks, which have outperformed every other asset class from 2001 to 2007 and later from 2013 to 2017.

Stocks have outperformed other asset classes by as much as 60 percent, yet only 3 percent of Indian population directly invests in stocks.

The main reasons for this is a lack of knowledge, awareness as well as unethical practices by a small minority of participants who encourage regular churning based on tips and rumours without giving proper financial planning to investors.

If someone invested in a Bank of India fixed deposit account in 2001, he or she would have an 8 percent return per year. If the same person invested in Bank of India stock he or she would have a total return of 4,800 percent as the stock rose from 12 rupees to all time high of 588 rupees in 2010.

Though Indians continue to be underinvested in the stock market there is more interest coming in from all corners. More than 200,000 new demat accounts are opened every month. Recent transparency measures should also bring more people in. The stock market will no longer be treated as a gamble but will be put on par with real estate and gold.

The irony is that even though stock markets as a long term asset class have given the highest returns, short term trading in futures and options has also caused the maximum losses. The maximum numbers of bankruptcies were caused due to the stock market crash in 2008-2009 amongst high risk speculative traders.

Power of Investing in Equity Market

Now, Just Imagine...

How much can you make in 36 years by just investing Rs.10,000 initially in any of financial instruments?

Take a wild guess?

Let us look at the real example.

If you have subscribed for 100 shares of "X" company with a face value of Rs. 100 in 1980.

• In 1981 company declared 1:1 bonus = you have 200 shares
• In 1985 company declared 1:1 bonus = you have 400 shares
• In 1986 company split the share to Rs. 10 = you have 4,000 shares
• In 1987 company declared 1:1 bonus = you have 8,000 shares
• In 1989 company declared 1:1 bonus = you have 16,000 shares
• In 1992 company declared 1:1 bonus = you have 32,000 shares
• In 1995 company declared 1:1 bonus = you have 64,000 shares
• In 1997 company declared 1:2 bonus = you have 1,92,000 shares
• In 1999 company split the share to Rs. 2 = you have 9,60,000 shares
• In 2004 company declared 1:2 bonus = you have 28,80,000 shares
• In 2005 company declared 1:1 bonus = you have 57,60,000 shares
• In 2010 company declared 3:2 bonus = you have 96,00,000 shares
• In 2017 company declared 1:1 bonus = you have 1,92,00,000 shares
• In 2019 company declared 3:1 bonus = you have 2,56,00,000 shares

Today, you have whopping 25.6 million shares of the company.

Any guess about the company?

(Hint: It’s an Indian IT Company)

Any guess about the present valuation of Rs. 10,000 invested in 1980?

The company which has made fortune of millions is "WIPRO" with present valuation of ~613 crores (excluding dividend payments) for Rs. 10,000 invested in 1980.

Unbelievable, isn’t it? But it’s a Fact! Investing in companies with good fundamentals and proven track record can give far superior returns compared to any other asset class (real estate, precious metals, bonds etc) in a long run.

Will Wipro provide similar returns in next 39 years? Probably not, it’s already an IT giant.

You need to explore companies in small and mid cap space with good track record and stay invested to create wealth in a long term. 

Let's take another example of little known company - Mayur Uniquoters. 

Mayur Uniquoters which we recommended 7 years back is still a 4-Bagger stock for our Hidden Gems members. We recommended Buy on Mayur Uniquoter under Hidden Gems service on 31 March 2012 at price of Rs. 56 (adjusted price after 2 bonus issues and stock split in last 7 years, actual recommended price was Rs. 448) and today even after witnessing fall in stock price by more than 60% from its peak of Jan 2018 (from Rs. 570 to current price of Rs. 215), Mayur Uniquoter is giving absolute returns of 283%. In fact, we missed to buy it early. You might be surprised to know that Mayur Uniquoter is a 71-Bagger stock for investors who invested in it 10 years back. Investment of Rs. 1 lakh in Mayur Uniquoters in Jan 2009 is valued at more than Rs. 71 lacs today (was valued at Rs. 1.90 crore in Jan 2018). Mind boggling, isn't it? Company has posted strong growth YoY and rewarded share holders in big way, Mayur Uniquoters was trading at Rs. 3 (bonus issues and split adjusted price) with market cap of merely 13 crores in Jan 2009, today market cap of the company is 970 crores.

Mayur Uniquoters is still a great value stock considering its consistent performance and leadership position in artificial leather industry and robust demand for its products by esteemed clients from auto and footwear industry.

It is a garden out there and one need to simply provide sufficient time to grow his quality seeds to get the fruits. One has to know what he is doing and has to be cognizant about it. With a little research and patience stock market investments can yield maximum returns.

So, how will you grow your savings? What are you investing in?

Read complete e-book "How to Grow your Savings?", its not only a must read for beginners but also for experienced investors. "How to Grow your Savings" will definitely help you to get an edge over others by understanding the basic of investments and importance of equities in a long run to generate income and create wealth. 

Below are the chapters covered in "How to grow your Savings?"

PART I: VALUE OF MONEY 
  • Inflation
  • Past & Future Value of Money
PART II: INCOME, EXPENDITURES & SAVINGS 
  • Income Expenditure Ratio 
  • Passive Income 
  • Tips & Tricks to Save Money 
  • Saving Strategies
PART III: SAVING & INVESTING 
  • Difference between Saving & Investing
  • Understanding Your Assets
  • Investing in Different Asset class
  • Pay Off Your Debt or Invest
  • Power of Compounding 
  • Benefits of Long Term Investing
  • 10 Key Investing Mantra’s
PART IV: FINANCIAL PLANNING 
  • Financial Planning 
  • Managing your Finances 
  • Making your own Investment Plan 
  • Your Investment Profile & Risk Tolerance
PART V: BUILDING AN EQUITY PORTFOLIO 
  • Investing in Equities
  • Investing in Bull & Bear Market
  • Invest in Individual Stock or Mutual Fund
  • Creating a Stock Portfolio
  • Investment Portfolio Mistakes to Avoid
  • Importance of Stock Diversification
  • Investing for Growth, Yield & Income
  • Facts & Benefits of Investing in Small Companies
PART VI: EQUITIES & RISKS 
  • Investing Risks Vs Rewards
  • Understanding Stock Market Risks
  • Different Type of Investing Risks
  • Managing Investment Risks
  • The Bulls, The Bears & The Farm
PART VII: EQUITIES & THE TIME FACTOR 
  • Stock Investing & The Age Factor
  • Don’t Count on Stocks for Short Term Goals
  • Characteristics of Successful Investors
  • Don’t try to Time Bottom of Stock Market
  • Investing in Stocks for Regular Income & Long Term Growth
  • Investing Checklist – 10 Most Important Element
Saral Gyan's 88 pages e-book is priced at Rs. 599 ($ 11.99). However, you can grab it for free, simply subscribe to Hidden Gems, Value Picks or Wealth-Builder annual subscription service under ongoing Dussehra Diwali offer 2019 and get our eBook without any additional cost.

Subscribe to our services and start investing systematically, severe correction in broader markets over last 20 months is giving you once in a decade opportunity to invest in high quality small and mid caps at historically low valuations.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan


Saral Gyan Dussehra Diwali offer
Saral Gyan team celebrates this festive season by offering attractive discount upto 30% and valuable freebies under Dussehra - Diwali offer 2019 (valid till 31st Oct 2019).

DUSSEHRA - DIWALI OFFER 2019
1. HIDDEN GEMS
PRICE - INR 10,000 9,000
OFFER DISCOUNT - 10%
TOTAL REPORTS - 12 (ONE / MONTH)
SUBSCRIBE!
2. VALUE PICKS
PRICE - INR 6,000 5,400
OFFER DISCOUNT - 10%
TOTAL REPORTS - 12 (ONE / MONTH)
SUBSCRIBE!
3. 15% @ 90 DAYS
PRICE - INR 4,000
NO DISCOUNT
TOTAL REPORTS - 12 (ONE / MONTH)
SUBSCRIBE!
4. WEALTH-BUILDER
PRICE - INR 20,000 18,000
OFFER DISCOUNT - 10%
PORTFOLIO UPDATES - 12 TO 18 / YEAR 
SUBSCRIBE!
SUPER SAVER COMBO PACKS
COMBO - 1
HG + VP + WB + 15%
PRICE - INR 40,000 28,000
OFFER DISCOUNT - 30%
REPORTS - 48 (FOUR / MONTH)
SUBSCRIBE!
COMBO - 2
HG + VP + 15%
PRICE - INR 20,000 15,000
OFFER DISCOUNT - 25%
REPORTS - 36 (THREE / MONTH)
SUBSCRIBE!
COMBO - 3
HIDDEN GEMS + VALUE PICKS
PRICE - INR 16,000 13,000
OFFER DISCOUNT - 20%
REPORTS - 24 (TWO / MONTH) 
SUBSCRIBE!
COMBO - 4
HIDDEN GEMS + 15% @ 90 DAYS
PRICE - INR 14,000 11,500
OFFER DISCOUNT - 18%
REPORTS - 24 (TWO / MONTH)
SUBSCRIBE!
COMBO - 5
VALUE PICKS + 15% @ 90 DAYS
PRICE - INR 10,000 8,500
OFFER DISCOUNT - 15%
REPORTS - 24 (TWO / MONTH)
SUBSCRIBE!
SARAL GYAN VALUABLE FREEBIES
1. DIWALI MUHURAT PORTFOLIO
"Deepawali Muhurat Buy - One Lakh Rupee Portfolio" of 10 stocks will be a model portfolio with proper mix of large, mid and small cap stocks which you can hold for a period of 1 yearThis portfolio will consist of our previous Hidden Gems and Value Picks recommendations
Note: Eligible subscribers will receive Saral Gyan One Lakh Rupee Portfolio - 2019 before Deepawali Muhurat (expected release date - 27th Oct 2019) 
2. SARAL GYAN eBOOK
 
Many investors are absolutely fascinated about investing in stock market. But, in our opinion mere fascination is not enough. Investing wisely and with the right insights helps one to grow his savings. The purpose of this e-book is to provide all the necessary information so that one can acquire new skills and expand his/her knowledge, in order to accomplish profitable investments in the stock market.

3. EQUITY PORTFOLIO HEATLH CHECK-UP
We review existing portfolio of our members under Wealth-Builder and guide them which stocks to hold or add, which to reduce or sell with right allocation. Under Wealth-Builder service, you need to mail us your existing stock portfolio in an excel file and our equity analysts will examine your stocks based on fundamental analysis. A customised portfolio analysis report will be prepared and emailed to you with all the findings and a personalised action plan.
4. SPECIAL REPORT - 5-BAGGERS IN 5 YRS
Considering current situation in broader markets as a buying opportunity, we released our special report 5 Stocks - Potential 5 Baggers in 5 Years on 30th July 2019. The objective is to achieve average annualized returns of 38% each year to achieve 5-Bagger returns in period of next 5 years.  These 5 Stocks are small cap companies with a market capital of less than 500 crores. Our research team have included best of Hidden Gems / Value Picks stocks released in past having potential to multiply your investment by 5 times within 5 years.

Above mentioned discounts and freebies are applicable on Saral Gyan annual subscription services under Dussehra Diwali offer till 31st Oct 2019 and cannot be availed later.

Paid Subscription Payment Options:

1. Debit/Credit Card/Net Banking (For Indian & Abroad Subscribers): Subscribers can pay online, click on SUBSCRIBE! link for online transaction.
2. Cheque Deposit: Deposit Cheque in any branch or ATM of ICICI / HDFC / Axis Bank. Please mention on the cheque - Saral Gyan Capital Services - A/c no. ....
3. Online Net Banking: Add any of the bank (ICICI / HDFC / Axis Bank) ac no. and name as a payee for online transaction. Click Here for bank details & IFSC code.

Note: In case of payment through cheque / cash deposit, write to us at sales@saralgyan.in with cheque / online transaction details (Cheque/online transaction no., your name, address, place, date and amount details).

Thursday, October 10, 2019

Ideal Time to Invest in 5 Small Caps with 5-Bagger Potential

Dear Member,

We strongly believe that carnage in stock prices of small and mid caps in 2019 is overdone and is giving once in a decade opportunity to long term investors to invest in equities at mouth watering valuations to get rewarded handsomely. While many retail investors panicked with continuous fall in stock prices over last 12 months, we are excited considering the fact that stock market after a long time have witnessed such a panic selloff due to slowdown in economy and fear of recession, giving once in a decade opportunity to invest in good quality small and mid size companies at dirt cheap valuations. 

We are glad to inform you that our equity analysts have finalized the best investment opportunities from small cap segment which can deliver excellent returns during next 5 years. Our team has released Special Report - 5 Stocks - Potential 5-Baggers in 5 Years on 30th July 2019 and we have shared the report with our Hidden Gems, Value Picks and Wealth-Builder members. The objective of this report is to achieve average annualized returns of 38% each year to achieve 5x returns in period of next 5 years by investing in 5 small caps.

As illustrated in table below, if these 5 companies generate returns on your investment @ 38% annually, your investment will be 5 fold in period of 5 years. Even if we take conservative scenario considering that only one out of five achieve CAGR of 38% and remaining four delivers CAGR of 20%, your investment will be trebled (3 times) in period of 5 years which is also good compared to returns from any other asset classes like Fixed Deposits, Real Estate, Metals – Gold / Silver or even major indices - Sensex and Nifty.

Investment of 5 lakhs in 5 Years at CAGR of 38%
However, our team while selecting these stocks is confident enough to achieve 5 times returns in period of 5 years by monitoring performance of these companies and taking corrective measures in case any of them does not perform up to our expectations. 

Few important parameters which have been looked by our equity analysts while finalizing the stock selection are as under: 
  • Market leader in the business / any one segment in which the company is operating in.
  • Scalable business with significant moat (sustainable competitive advantage)
  • Prudent Management with promoters increasing their shares holding in the company 
  • Low / manageable debt on books with healthy cash flows.
  • CAGR of above 15% with increase in operating and net profit margins in last 5 years.
  • Consistent dividend payment with dividend yield above 1% in last 5 years
  • Growing EPS, low PE ratio with increasing ROE and ROCE over last 5 years.
  • Low share holdings of Institutions (FIIs & DIIs) to get first mover advantage.
Each parameter is equally important and plays a vital role to ensure that you get healthy returns on your investment with limited downside risk in long term. One of the important key to successful investing is to pick the right business at decent valuations. Once you buy shares, you own a part of company’s business.

While determining which stocks to consider as a long term investment opportunity for generating 5-Bagger returns, we looked into below 5 value drivers:

i) Does the company offer a product or service that has broad acceptability in a large, growing market?
ii) Does the company have healthy margins, and are they sustainable over a longer period of time?
iii) Can company generate significant amounts of cash without resorting to expensive debt?
iv) Can company return the cash generated to its shareholders by declaring generous dividends?
v) Is the company’s management honest and competent, with hunger to grow business at a faster pace?

We at Saral Gyan recommend good businesses to buy with long term view and any change in our stock views will be based on strong structural trend and not on any short term movement.

Major indices - Sensex and Nifty have corrected by almost 8% from their all-time highs in recent times. However, BSE Small & Mid Cap Index is down by 38% and 27% respectively from their peak levels made in Jan 2018. During last 18 months, most of the small and mid cap companies stock prices have witnessed severe fall giving an opportunity to long term investors to buy good quality companies at significantly lower valuations. Market may correct by another few percentage points in near term. However, if you are a long term investor, you must avoid timing the market and consider ongoing downfall to start accumulating high quality companies with strong fundamentals to get rewarded in big way in long term.

Special Report - 5 Stocks - Potential 5-Baggers in 5 Years
Considering current situation in broader markets as a buying opportunity, we released our next issue of special report 5 Stocks - Potential 5 Baggers in 5 Years.  Our report is released on 30th July 2019 with an objective to achieve average annualized returns of 38% each year to achieve 5-Bagger returns in period of next 5 years. Please note that stocks selection under this report is done on the basis of fundamental analysis considering above mentioned parameters. These 5 Stocks are small cap companies with a market capital of less than 500 crores. Our research team have included our Hidden Gems / Value Picks stocks released in past having potential to multiply your investment by 5 times within 5 years.

We would like to inform our readers that our 1st Special Report titled 5 Hidden Gems stocks - Potential 5-Baggers within 5 Years was released by our research team on 26th July’13, it was similar time like that of today when there was lot of pessimism around the market and we find it as one of the best time to invest in some of the fundamentally strong small cap companies. Later in April 2014, we released update on our 5 Hidden Gems - Potential 5-Baggers within 5 Years report in which we included company’s performance, updates and development in these companies along with our views and recommendation with buy / sell / hold decisions and also the fair price range to accumulate these stocks.

Update on this report was published in April'14 which we shared with all our Hidden Gems and Wealth-Builder members. We are glad to share that all 5 Hidden Gems stocks selected by us gave astonishing returns in the range of 210% to 520% within 2 years and investment made by our members in these stocks have already multiplied by 4.5 times. 
As our objective was almost achieved, we decided to make our report public. This will help our readers to understand the potential of investing in good companies in bad times with a long term view.

Click here to Read/Download our Special Report - 5 Hidden Gems stocks - Potential 5-Baggers within 5 Years update released on 20th April 2014. 

If we find any major change in fundamentals in any of these 5 stocks which can impact their performance going forward, we will inform you to take corrective measures. For Ex: We informed our members to exit Ador Fontech (one of the 5 Hidden Gems stocks covered in Special Report) and replaced it with Atul Auto which was offering better investment opportunity at that point of time as mentioned in the report. This proved to a great move for our members as Atul Auto has given much better returns compared to Ador Fontech during next 12 months.

Note: If you wish to receive our Special Report 5 Stocks : Potential 5-Baggers in 5 Years (released on 30th July 2019), simply subscribe to Hidden GemsWealth-BuilderValue Picks or any of our combo packs and we will send you the report without any extra charges! We have shared this report with all our existing subscribers of Hidden GemsWealth-Builder and Value Picks without any extra cost. Simply subscribe to our services and grab our Special Report - Potential 5-Baggers in 5 Years for Free!

We are pleased to inform that we are celebrating this festive season by offering maximum benefit to our members. On this auspicious day, you can avail discounts up to 30% and valuable freebies on our subscription services under Saral Gyan Dussehra Diwali Offer 2019. Subscribe to our services and get rewarded by making smart investment decision in equities.

Attractive discounts & valuable freebies which make this festive season special for our readers are as under:

1. Discount up to 30% on combo pack subscription (valid up to 31st Oct'19 only)
2. Rs. 1 Lakh Diwali Muhurat Portfolio of 10 Stocks (to be released on 27th Oct'19)
3. Special Report - Potential 5-Baggers in 5 Years (Released on 30th July'19)
4. Special Report - 6 Hidden Gems Stocks to Buy / Accumulate (to be released in Nov'19)
5. Special Report - 6 Value Picks Stocks to Buy / Accumulate (to be released in Nov'19)
6. Existing Portfolio Health Check Up under Wealth-Builder Subscription
7. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st Oct'19.


Saral Gyan Dussehra - Diwali Offer 2019
SARAL GYAN
SUBSCRIPTION SERVICE
DUSSEHRA - DIWALI OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
15% @ 90 DaysRs. 4,000 (No Discount)
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Click here to know more about Saral Gyan Dussehra - Diwali Offer 2019.  

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case you are not comfortable in subscribing online, click here to know about our other payment options and bank details.

Do contact us in case of any queries, we will be delighted to assist you.

Also Read: Multibagger Stocks which gave upto 64X Returns in 9 Years

Wish you happy & safe Investing.

Regards,
Team - Saral Gyan.

Tuesday, October 8, 2019

Celebrating Dussehra with Great Discount & Freebies!

Dear Reader,

Saral Gyan team wishes you Happy Dussehra!

Dussehra or Vijayadashmi is celebrated on the tenth day of the Hindu autumn lunar month of Ashvin, or Ashwayuja which falls in September or October of the Western calendar, from the Shukla Paksha Pratipada, or the day after the new moon which falls in Bhadrapada, to the Dashami, or the tenth day of Ashvin. The first nine days are celebrated as Maha Navratri (Sanskrit: Navratri, 'nine nights') or Sharada Navratri (the most important Navratri) and culminates on the tenth day as Dasara.

The day marks the victory of Goddess Durga over such demons as Mahishasur. It is a day when devotees worship Goddess Shakti. Shakti represents strength, ability and courage. This day also celebrates the victory of Lord Rama over the demon king Ravana.


Dussehra is considered as most auspicious day for doing anything new in order to gain more power, more wealth and more wisdom.

We are pleased to inform that we are celebrating this festive season by offering maximum benefit to our members. On this auspicious day, you can avail discounts up to 30% and valuable freebies on our subscription services under Saral Gyan Dussehra Diwali Offer 2019. Subscribe to our services and get rewarded by making smart investment decision in equities.


Attractive discounts & valuable freebies which make this festive season special for our readers are as under:


1. Discount up to 30% on combo pack subscription (valid up to 31st Oct'19 only)
2. Rs. 1 Lakh Diwali Muhurat Portfolio of 10 Stocks (to be released on 27th Oct'19)
3. Special Report - Potential 5-Baggers in 5 Years (Released on 30th July'19)
4. Special Report - 6 Hidden Gems Stocks to Buy / Accumulate (to be released in Nov'19)
5. Special Report - 6 Value Picks Stocks to Buy / Accumulate (to be released in Nov'19)
6. Existing Portfolio Health Check Up under Wealth-Builder Subscription
7. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st Oct'19.


Saral Gyan Dussehra - Diwali Offer 2019
SARAL GYAN
SUBSCRIPTION SERVICE
DUSSEHRA - DIWALI OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
15% @ 90 DaysRs. 4,000 (No Discount)
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case you are not comfortable in subscribing online, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan Dussehra - Diwali Offer 2019.  

Wish you once again a very happy Vijayadashmi.

Regards,
Team - Saral Gyan.

Monday, October 7, 2019

Will History Repeat Itself in 2019 for BSE Small Cap Index?

Dear Reader,

There is lot of hopelessness with least participation by investors in small and mid caps in 2019.  The reason is the carnage in stock prices of many well-known companies. Retail investors have taken the back foot and lost their faith and conviction towards investing in small and mid caps due to existing pain in their portfolios.

However, we are quite excited about opportunities emerging in small and mid cap space. You may argue that most of small and mid caps have wiped out your hard earned gains over last couple of years. In fact those who invested in small caps over last 2 years are sitting on significantly higher losses and may be thinking to stay away from them.


But we beg to differ. We firmly believe that these are the opportune times to invest in broader markets instead of large caps. During bear phase in broader markets, negative sentiments around small and mid caps have brought down excellent businesses down to historically low valuations, there are companies which have not seen any change in business fundamentals, continue to grow during these tough times but are now available at decade low valuations. The fall in stock prices of many small and mid caps by more than 50% from their peaks has not happened for the first time. This has happened in past and companies with good business fundamentals have always bounced back strongly.  When overall market sentiments are negative like we are witnessing now due to various reasons along with slowdown in economy, quality businesses also face the heat. As bad stocks go down, good stocks go down with them too. But good companies make a stronger come back with earning revival once economy cycle starts its upturn.


The BSE small cap index is down by 37% from its peak made in January 2018. The liquidity crisis in NBFCs, the DHFL and IL&FS defaults, collapse in stock price of Yes Bank, lenders dumping stocks of debt laden companies, layoffs in automobile sector with production cuts, and GDP growth slipping to 6 years low of 5% in June quarter have dampened investors sentiments towards broader market. Fear and misinformation has shattered investor’s confidence and hence quality businesses are back to cheap valuations.


Moreover, the bold decisions and corrective measures taken by the Government recently must augur well to get economic growth back on track sooner than later.  Last month, FM Nirmala Sitharaman announced a historic reform by reducing tax for Corporate India. Government slashes tax on domestic businesses to one of the lowest rates in Asia, providing a more than USD 20 billion boost to revive economic growth from a six-year low. Effective from April 1, 2019, tax on all domestic companies will be lowered to 22% from a base rate of 30% currently. The effective new rate will be 25.17% including all additional levies.

Earlier, the Govt had reduced effective tax rates on companies with turnover up to 400 crores to 29.12%, now those companies will also be taxed at 25.17%. The new tax structure for new companies formed from 1 Oct 2019 will attract a base tax rate of 15% and effective rate of 17.01%.


India now has amongst the most competitive tax rates in the region. At an effective rate of just over 25 percent inclusive of all levies, businesses in India need not find ways to reduce or evade their tax burden. With more money in hand, Indian firms can choose to further invest in business growth doing capex or can reduce their product prices to boost sales or reward employees giving higher pay cheques. All these moves will eventually have positive economic impact. New manufacturing companies enjoying a tax-friendly entry is definitely a big positive for "Make in India" initiative, an effort to boost productivity-oriented jobs for lower-skilled Indians.


Slashing corporate tax rate will invite big global manufacturing companies to India as well as encourage Indian companies to expand their operations. Indian Government has not only gave a super dose of steroid to revive weak economic growth but also rolled out red carpet for global companies to invest in India, make in India and grow & prosper with India.


Will History Repeat Itself in 2019 for Small Cap Index?

Looking at past performance, BSE Small Cap Index has never delivered negative returns for 2 consecutive years in past. Small cap index was down by 23.4% in 2018, and as on date it is down by another 14%. BSE Small Cap Index which was at 14,767 on 1st Jan 2019 closed at 12,713 today.

Now if history has to repeat itself, BSE Small Cap Index has to close well above 14,767 by end of this year. It means minimum upside of 16.2% from current levels. Looking at dirt cheap valuations of small caps at current juncture and change in sentiments with Government announcing major reform i.e. cut in corporate tax, we believe it is very much possible. And in case if history fails to repeat itself in these 3 months, it will not disappoint long term investors who are accumulating fundamentally strong small and mid size companies at current levels.

More importantly, we are not just looking for recovery, we firmly believe that lot of wealth will be created from small and mid size companies which are doing all the right things without any change in business fundamentals but witnessed crash in stock prices just due pessimism in markets. Over next 2 to 4 years, the same set of companies not only recover their lost ground but also turned out to be multibaggers for long term investors.


In past, BSE Small Cap Index went up by 69% in 2014 and during the same year numerous small and mid cap stocks turned multi-bagger delivering mind boggling returns. These returns were enjoyed mostly by those who held on to their stocks during painful years like 2011 and 2013. BSE Small Cap Index rallied by 58% in 2017 when we witnessed lot of retail participation in broader markets and most of small and mid caps were expensively valued, later broader market went into bear grip with significant sell off in many small and mid caps due to expensive valuations and series of negatives developments followed by slowdown in economy.


If you analyse BSE Small Cap Index YoY returns, you will realise that small cap index not only recovered but also delivered astonishing returns in short span of time once tide turns favourable. In last 16 years, small cap index delivered significantly higher returns in single year every four years. In past, we experienced fierce rally in small caps in years like 2007, 2009, 2014 and 2017. 

Do not stop investing in small caps looking at these turbulent times, its time to do the opposite, this phase has happened before and small and mid caps have always bounced back. Good sentiments as well as bad sentiments do not last forever.

Considering current situation as one of the most opportune time to invest in small and mid caps, we released next issue of our Special Report - Potential 5-Bagger Stocks in 5 Years on 30th July 2019 and shared with our Hidden Gems, Value Picks and Wealth-Builder members. We will also release our special reports - 6 Hidden Gems & 6 Value Picks to Buy / Accumulate in Nov 2019. If you wish to receive these special reports, you can opt for our annual services under ongoing Saral Gyan Dussehra Diwali Offer 2019.
During this festive season, we decided to pass on the maximum benefits to our readers by offering great savings and valuable freebies with our Dussehra - Diwali Offer 2019! Attractive discounts & valuable freebies which make this festive season special for our readers are as under:

1. Discount up to 30% on combo pack subscription (valid up to 31st Oct'19 only)
2. Rs. 1 Lakh Diwali Muhurat Portfolio of 10 Stocks (to be released on 27th Oct'19)
3. Special Report - Potential 5-Baggers in 5 Years (Released on 30th July'19)
4. Special Report - 6 Hidden Gems Stocks to Buy / Accumulate (to be released in Nov'19)
5. Special Report - 6 Value Picks Stocks to Buy / Accumulate (to be released in Nov'19)
6. Existing Portfolio Health Check Up under Wealth-Builder Subscription
7. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st Oct'19.


Saral Gyan Dussehra - Diwali Offer 2019
SARAL GYAN
SUBSCRIPTION SERVICE
DUSSEHRA - DIWALI OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
15% @ 90 DaysRs. 4,000 (No Discount)
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case you are not comfortable in subscribing online, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan Dussehra - Diwali Offer 2019.  

Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price. Remember, "If you want your Money to Grow, Equities is the only Way to Go" in long term. If you think to invest in stocks for period of 6 months or 12 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

Below are the details of our services:

1. Hidden Gems (Unexplored Multibagger Small Cap Stocks): Based on fundamental analysis, our equity analysts release one Hidden Gem research report every month with buy recommendation and share it with all Hidden Gems members. Stock finalized as Hidden Gem belongs to small / micro caps space with market cap of less than 500 Crores, expected returns from Hidden Gems is above 100% in period of 12 - 24 months. Once target is achieved, we inform our members whether they should continue to hold the stock or need to do partial / full profit booking. If fundamentals are intact and valuations are reasonable, we suggest to continue to hold the stock for long term for multibagger returns. Annual subscription charge of Hidden Gems is INR 10,000 9,000 under which you will receive total 12 Hidden Gems research reports (one on monthly basis). Click here to read more about Hidden Gems.

2. Value Picks (Mid Caps with Plenty of Upside Potential): Our equity analysts team consider Warren Buffet approach to short list stocks from mid cap segment as Value Picks. Market cap of Value Pick will range from 1000 crores to 10,000 crores. Holding period of Value Picks is 12 - 24 months and one can expect returns of 40-50%. Annual subscription charge of Value Picks is INR 6,000 5,400 under which you will receive total 12 Value Picks research reports (one on monthly basis). Click here to read more about Value Picks.

3. 15% @ 90 Days (Buy to Sell Stocks for Short Term Gain): Based on technical analysis, our team recommends one stock every month to our members. It’s a short term call under which you can expect returns of 15% within period of 90 Days. Annual subscription charge of 15% @ 90 Days is INR 4,000 under which you will receive 12 stock recommendations. We suggest lower allocation in 15% @ 90 Days stocks and higher allocation in Hidden Gems and Value Picks which are our portfolio stocks based on fundamental analysis.​ 15% @ 90 Days stocks recommendations are based on buy to sell and gain strategy, hence we suggest our members to book complete profits once target is achieved and exit in case target is not achieved or stock has broken its 2nd support level as per report. Click here to read more about 15% @ 90 Days.

4. Wealth-Builder (An Offline Portfolio Management Service): Wealth-Builder is our model portfolio of Rs. 10 lakhs and currently we are holding 16 stocks in our portfolio. We suggest higher allocation in our Wealth-Builder stocks which includes best of our Hidden Gems and Value Picks released during last couple of years. Our team suggest all our Wealth-Builder members to invest in the stocks which are part of our Wealth-Builder portfolio. Every month our team updates our Wealth-Builder members which stocks they need to buy / sell / hold with % allocation of these stocks in their portfolio, the suggested changes need to be replicated in the same proportion. Annual subscription charge of Wealth-Builder is INR 20,000 18,000 under which you will receive total 12-18 portfolio updates. We also review existing equity portfolio of our members and advise them which stocks to hold and which to exit based of fundamental analysis. Moreover, we do look at sector wise / stock wise allocation in the portfolio and advise in case of any corrective measure needs to be taken by increasing or decreasing the stock specific allocation. Our Wealth-Builder service is suitable for those investors who have an existing portfolio of at least 2 to 3 lakhs or planning to invest similar amount or more in equity market. Click here to read more about Wealth-Builder.

You can avail discount upto 30% of our combo packs under Dussehra - Diwali offer 2019, click here for details.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan