1.1 – Overview
Fundamental Analysis (FA) is a holistic approach to study a business. When an investor wishes to invest in a business for the long term (say 3 – 5 years), it becomes essential to understand the business from various perspectives. It is critical for an investor to separate the daily short term noise in the stock prices and concentrate on the underlying business performance. Over the long term, a fundamentally strong company’s stock prices tend to appreciate, thereby creating wealth for its investors.
We have many such examples in the Indian market. To name a few, one can think of companies such as Infosys Limited, TCS Limited, Page Industries, Eicher Motors, Bosch India, Nestle India, TTK Prestige etc. Each of these companies has delivered an average over 20% compounded annual growth return (CAGR) year on year for over 10 years. At a 20% CAGR, the investor would double his money in roughly about 3.5 years to give you a perspective. Higher the CAGR faster is the wealth creation process. Some companies such as Bosch India Limited have delivered close to 30% CAGR. Therefore, you can imagine the magnitude and the speed at which wealth is created if one would invest in fundamentally strong companies.
Here are long term charts of Bosch India, Eicher Motors, and TCS Limited that can set you thinking about long term wealth creation. Do remember these are just 3 examples amongst the many that you may find in Indian markets.
At this point, you may think that I am biased as I am selectively posting charts that look impressive. You may wonder how the long term charts of companies such as Suzlon Energy, Reliance Power, and Sterling Biotech may look? Well here are the long term charts of these companies:
These are just 3 examples of the wealth destructors amongst the many you may find in the Indian Markets.
The trick has always been to separate the investment-grade companies which create wealth from the companies that destroy wealth. All investment-grade companies have a few common attributes that set them apart. Likewise, all wealth destructors have a few common traits which are clearly visible to an astute investor.
Fundamental Analysis is the technique that gives you the conviction to invest for a long term by helping you identify these attributes of wealth-creating companies.
1.2 – Can I be a fundamental analyst?
Of course, you can be. It is a common misconception that only chartered accountants and professionals from commerce background can be good fundamental analysts. This is not true at all. A fundamental analyst adds 2 and 2 to ensure it sums up to 4. To become a fundamental analyst, you will need a few basic skills:
- Understanding the basic financial statements
- Understand businesses concerning the industry in which it operates
- Basic arithmetic operations such as addition, subtraction, division, and multiplication
This module’s objective on Fundamental Analysis is to ensure that you gain the first two skill sets.
1.3 – I’m happy with Technical Analysis, so why bother about Fundamental Analysis?
Technical Analysis (TA) helps you garner quick short term returns. It helps you time the market for a better entry and exit. However, TA is not an effective approach to create wealth. Wealth is created only by making intelligent long term investments. However, both TA & FA must coexist in your market strategy. To give you a perspective, let me reproduce the chart of Eicher Motors:
Let us say a market participant identifies Eicher motors as a fundamentally strong stock to invest and therefore invests his money in the stock in 2006. You can see the stock made a relatively negligible move between 2006 and 2010. The real move in Eicher Motors started only from 2010. This also means FA based investment in Eicher Motors did not give the investor any meaningful return between 2006 and 2010. The market participant would have been better off taking short term trades during this time. Technical Analysis helps the investor in taking short term trading bets. Hence both TA & FA should coexist as a part of your market strategy. In fact, this leads us to an important capital allocation strategy called “The Core Satellite Strategy”.
Let us say, a market participant has a corpus of Rs.500,000/-. This corpus can be split into two unequal portions; for example, the split can be 60 – 40. The 60% of capital, Rs 300,000/- can be invested for a long term is fundamentally strong. This 60% of the investment makes up the core of the portfolio. One can expect the core portfolio to grow at least 12% to 15% CAGR year on year basis.
The balance 40% of the amount, which is Rs.200,000/- can be utilized for active short term trading using Technical Analysis technique on equity, futures, and options. The Satellite portfolio can be expected to yield at least 10% to 12% absolute return every year.
1.4 – Tools of FA
The tools required for fundamental analysis are fundamental, most of which are available for free. Specifically, you would need the following:
- The company’s annual report – All the information you need for FA is available in the annual report. You can download the annual report from the company’s website for free
- Industry-related data – You will need industry data to see how the company under consideration is performing concerning the industry. Basic data is available for free and is usually published in the industry’s association website
- Access to the news – Daily News helps you stay updated on the latest developments in the industry and the company you are interested in. A good business newspaper or services such as Google Alert can help you stay abreast of the latest news
- MS Excel – Although not free, MS Excel can be extremely helpful in fundamental calculations
With just these four tools, one can develop a fundamental analysis that can rival institutional research. You can believe me when I say that you don’t need any other tool to do good fundamental research. In fact, even at the institutional level, the objective is to keep the research simple and logical.
Key takeaways from this chapter
- Fundamental Analysis is used to make long term investments.
- Investment in a company with good fundamentals creates wealth.
- Using Fundamental Analysis, one can separate an investment-grade company from a junk company.
- All investment-grade companies exhibit a few common traits. Likewise, all junk companies exhibit common traits.
- Fundamental analysis helps the analysts identify these traits.
- Both Technical analysis and fundamental analysis should coexist as a part of your market strategy.
- To become a fundamental analyst, one does not require any special skill. Common sense, basic mathematics, and a bit of business sense are all that is required.
- A core-satellite approach to capital allocation is a prudent market strategy.
- The tools required for FA are generally fundamental; most of these tools are available for free.
Versity is good, however most of the charts given are not legible. The coordinate labels appear very small to read, probably on full HD display. Also the charts are marked by circle and arrow but not by word. For example while explaining the candlesticks the word doji, spinning top etc should be written.
Thanks for the feedback, I would agree with you. Most of the images are real time screenshots from live markets, hence the drop in image quality.
My humble request to you kindly provide Fundamental & Technical Analysis in Hindi language.
We will try and do that, Vinod. But cannot give a timeline to it.
sir i am n reading fundamental , I need CGAR calculation for i have checked your notes i did not get any answer Please advise me
Check section 6.7 here – https://zerodha.com/varsity/chapter/the-stock-markets/
Hello Kishor I need historical fundamental data of Indian equities. Any references would be useful. Note that I already have end of the day data. I am specifically looking for fundamental data.
Thanks and appreciate your response.
[…] Introduction to Fundamental Analysis – Zerodha Varsity. […]
Please provide downloadable for taking print and read keep it as a reference guide.
Maybe sometime in the future Ram, thanks.
Fundamental analysis is very useful to create our self openion on company strategy .there is given very nice illustration on fa.
Thanks, glad you liked it 🙂
Can I Get the soft copy of the modules
Thanks, but this may not be possible for now !
Good overview covering the positive and negative aspect and comparing with TA which depicts the picture more clearly.
One query – What is the role of MS Excel as a tool in FA ?
Excel is a very important tool! Helps a lot while building financial modelling.
i would like to ask a question that how much years of past data is considered while doing proper analysis of a company
Look for at least past 5-7 years of annual data. They say when a company completes every 7 years of business, it would have undergone 1 economic cycle. Hence when you look at 7 years of data, you will be factoring (and analyzing) 1 full economic cycle.
BUT KARTHIK THESE CYCLES CAN VARY, HOW WOULD I KNOW THAT AT WHAT TIME PERIOD THE ECONOMIC CYCLE OF THE COMPANY STARTED. WE ARE JUST ASSUMING THAT THIS CYCLE COULD HAVE STARTED EXACTLY 7 YEARS BACK.
No, that would be flawed. Clearly, it would vary company to company.
Varsity is really good and this educative series has really helped in understanding the technical aspects of the market
Glad to know this, please stay tuned for more 🙂
I have a question.
Will it be feasible for me to enter stock market by this much technical knowledge ?
I want to do short term trading and I am entirely new to it.
Thanks in advance.
Yes, please be through with everything we have discussed on Varsity and I’m confident you will be on the right track.
The Satellite portfolio can be expected to yield at least 10% to 12% absolute return on a yearly basis.
If the stock market is giving me just 10%, then why should I even care to do so much of hard work in analyzing stocks when I can get 9%(just a percent less) just by simply keeping it in the bank’s FD!!!
Couple of things here Adam –
1) Long term Capital Gains tax is nil. Hence if you manage 12% on your portfolio over the last 365 days then do remember this is tax free
2) FD returns are taxable – so 9% after tax is about 7%. So contrast 7% versus 12%!
3) 12 % is a bit conservative…well managed Equity portfolios can generate over 15%
4) At 15% year on year your money will start working really well in your favor. To appriciate this point I would suggest you read the next chapter ‘Mindset of an Investor’, especially section 2.2.
Where can we find the industry data?? and i can not find 10 years of annual reports for many companies in their respective websites could only get hands on 3-5 years of data so what to do 10 years of data??
Usually the industry data is made available by the industry association/lobby. For example you can get all automobile data you could check SIAM – http://www.siamindia.com/ . I guess for historical AR you could check with the company directly, you will be surprised to know that most of the companies oblige and point you to the source.
I do i contact companies for historic annual reports
Yes you can.
Sorry earlier was a typing mistake,How do i contact companies for historic annual reports??
Contact the investors cell within the company.
In where I got 5 to 7 year data for FA for a company ?
Check this, quite nicely done – http://www.ratestar.in/
i bought a share in 5000 quantity, cupid ltd 2 years back at 30 rupees.i sold the at 500 .now share are trading at 353 rupees .its valuation are not seems correct..should i reenter ?
I would not know that as I don’t follow the company 🙂
Where can we find the banking industry data?
Is there any official website available to know about banking industry data?
RBI has tons of data, suggest you explore the site.
Hi Karthik,
Could you explain more on getting the news about the companies. Please mention some good tools or websites those are helpful.
Thanks,
Deepak
I’ev shared the URLS for your previous comment.
Hi Karthik,
I read from Intelligent Investor that bonds and stocks should occupy 50:50 amount in portfolio. When stocks become expensive then bonds get valuable and vice versa. Because of your excellent articles I am now confident in stocks. But I know nothing about the bonds. So, could you please introduce a lesson about bonds?
Thanks,
Deepak
We will try and put up information on bonds sometime soon. However, the bond market in India is not really vibrant for retail participants.
Hi
Impressed! Very interesting way of learning.
Is it possible on can target dividends in a short term trade? E.G. Today for company x’s dividend declared and buy on the same date then one can expect dividend? Please elobrate on complete process, declaration date, record date etc
Yes, some people do this. It is called ‘Dividend Stripping’, check this article – http://www.thehindubusinessline.com/opinion/all-you-wanted-to-know-about-dividend-stripping/article8179784.ece
Hi Karthik
This could be trading strategy related question. I have read in a book that the author invests in shares of a company and exits after a year leaving the profit and withdrawing the principal amount invested. Which leaves the profit money to grow and principal is safe (of course the principal shall be invested elsewhere in order to get benefitted).
What could be the disadvantages or advantages in this kind of approach?
Well, not a bad idea…but then long term investment is all about wealth creation, if you pull off the principle then you are essentially reducing the investment, not sure why one would want to do that.
Yeah, need to ask Robert Kiyosaki – why he does that – and still has a huge net-worth! 🙂
lol 🙂
Hi Karthik,
I have a basic question. As per most of the good investors it is advised that long term mindset should be set to become a successful investor in stock market. Companies performance does not contribute to the price of the shares as share price is totally dependent on investors emotion and market news. So how can we ensure that the current share price will not come down to its initial invested value after 5-6 years?
In the long run, it is the performance of the company that takes the stock price to its true value. As an investor one need to spend more time analyzing the business of a company rather than the price of a stock, this will naturally ensure your investments are safeguarded.
can u name some site where i can track the performance of company industry.
Check screener.in and ratestar.in
Hi Karthik, I am one among those who came into stock market without knowing what is Stock Market. I read few basic books (Intelligent Investor, Common Stock & uncommon profits, One up, Fooled by Randomness etc) to get a perspective. Very recently I can across varsity (Luckily!). It is very useful and I like the way you explain. All these basic books are completely against Technical Analysis. Could you please tell me if it is possible to get returns greater than FD rates by following technical Analysis CONSISTENTLY ? I did go through the fundamental analysis modules. Is it worth to dig deeper into Trading(Understanding Black & Scholes and trading strategies etc) ? Please clarify. Thank you .
I’m happy to know you liked Varsity 🙂
Yes, there are traders who make more than FD rates consistently while trading. We have even interviewed few of them to understand their mindset – http://zerodha.com/z-connect/category/zerodha-60-day-challenge/winners
This is hard work, but can be worth if you do it the right way.
Karthik, Thank you very much for replying. Looking at the winners, isn’t it the survivor bias (I am getting reminded of the Monkeys on the Typewriter analogy )? I am convinced that money can be made on long term(Thanks to you & Varsity team!). I am just skeptic about technical analysis and short term trading. If I learn more, does it help? is it wroth learning the TA or luck plays a major part?
There is no denying about the survivor bias here. But the practical problem is that its very hard to interview people who have lost money, they tend to shy away :). Read through the interview and treat it as just one set of inputs. Trading via TA requires a great amount of discipline, which let me assure you is not easy.
Here is what I’d suggest – spend time learning (the right way) and give it shot with smaller amounts of money. Scale only when you feel there is substance.
Hi Karthik
As you have written ” You will need industry data to see how the company under consideration is performing ”
Please provide some source where i can find Industry Related Data.
Thank You
Every industry has its own association which provides this data.
For example sugar has this – http://www.indiansugar.com/ and automobiles has this – http://www.siamindia.com/ and IT has this – http://www.nasscom.in/.
Sir,
can u please give link of sites for all industries from where we can get the relevant data ? I know that i am asking a lot – but please treat this as a request. You can start with details of a few industries and keep on updating the same periodically.
Thanking you in anticipation
Regards-A Bhapkar
Have you checked out screener.smallcase.com?
Hi Sir,
It would be of great help if you can send me the excel sheet which have explained in the the tutorial. I’m struggling to create one from looking at your tutorial
Thanks!
-Anand
Which excel are you referring to?
Is there any excel created for doing this kind of fundamental analysis. Just like you have created for knowing the current value of the stock. I know formulas are already there in this tutorial but it would helpful if we get an excel sheet for the same.
I soon plan to put up a module on Financial Modelling…this will include everything in one excel sheet.
Karthik Sir – I’m still eagerly waiting for an excel sheet. I would be helpful to start doing research. Could you please let me know by when you are planning to put up module on Financial Modelling and excel sheet?
Anand – I’m afraid a module on Financial Modelling is still a bit far away! Maybe towards the mid of this year.
I will be waiting for it then.. 🙂
Thanks for you patience, Anand.
Sir – Any updates on the Financial modelling and excel sheet which was planned earlier?
Trying to finish the current ongoing model on Risk management, fin modelling next.
Thanks for the updates Sir!
Cheers!
dear sir,
I am eagerly waiting for your financial modeling, kindly when could we expect your financial modeling so that it will help to our understanding the analysis of company
That will be after the ongoing module on Trading System.
Sirji, any updates on the Financial modelling and excel sheet which was planned earlier??!!
Not yet, Daljeet, I would love to put up the module, but unable to find the time.
Hi Karthik,
Can we rely on the fundamental data provided in Moneycontrol for any stock ?
I would not 🙂
I like to look at the numbers from the Annual Report directly.
Sir,
Where will get companies valid annual reports directly for analyzing datas,
Thanks
On the companies website, under the ‘Investors’ section.
Sir
Only technical analysis is sufficient for short term investment
Depends on how you define short term. If its for few minutes or hours or maybe few weeks, then TA is good. Something like 3 months or more then its good to be aware of the fundamentals as well.
its a fantastic source to make a fundamental analysis
thanks at all.
Good luck and happy learning!
FA is indeed a very time tested investment philosophy. However I am keen to know how to take the first step ? For e.g. how to get a list of say 5-10 companies for further research and analysis. Do you suggest using some screeners or using Lynch’s approach ?
You can certainly start with screeners. Smallcase has just launched a screening tool which will help you identify stocks. Apart from this you generally need to develop a good investment mindset which will help you identify stock ideas. Yes, Lynch’s approach is a great way to start.
I am not aware of Lynch’s approach. Can you put some light on it.
You got to read this book – https://www.flipkart.com/one-up-wall-street/p/itme3d77qmktnj6k
Dear karthik,
can you post a separate chapter on how to read and analyse, earnings report or any report published by a brokerage research. That would be great if you do so..
Will add that to my list, thank you 🙂
Sir i am in confusion
what is the differnce for Net profit For period from financials and Reported NET PROFIT .
It is the same.
Previously pdf. version was also available for download and offline reading. PDF version is very convenient for self study and marking. But now I could not find a link to download content as pdf version. Please help.
We will bring them back.
I need to know where to get the quarterly reports as soon as they are published?
For example, few days back, Sun Pharma published q1 results. I checked their website immediately after reading thw news, but P&L statement was not there yet. Still I can see all the news about it. So from where do these news people get the information so fast?
Basically I am interested in getting to know the financial news of a scrip as soon as possible.
It will be made available on the site really quickly. If not for the official source, I’d suggest you check a 3rd party tool like MC, but I personally don’t rely much on 3rd party source.
Regarding NIFTY dividend yield-
1. are dividends paid every day in nifty 51 stocks …? I think its once in few months so how come they have given nifty divident yield value for each dy?
2. what is the relevance of nifty dividend yield? like by increasing P/E we can assume that market is overpriced…in the same way what conclusions can be taken from dividend yield
1) Companies pay dividends (if at all paid) once or twice a year
2) The dividend yield is adjusted every day. Remember the yield changes as Nifty spot changes value
3) You can plot the historical dividend range and peg that against the Nifty’s spot price….and then arrive at some conclusion on oversold and overbought Nifty regions.
Good Evening Karthik,
I have couple of queries.
1. I assume the DCF cannot be used to value the intrinsic value of bank stocks, in that case what are the other methods i can use to so?
2. Where can I get the EPS or ROE of a scrip for say 5 – 10 years?
3. I want to hear from you about Godrej Consumer Scrip, product wise I see the company has less exposure to consumers when compared to HUL in that case do you think Godrej consumer is overly priced at the moment?
1) Relative valuation model can be used
2) Check out – https://screener.smallcase.com/welcome
3) Not sure, Siva. I’ve not been tracking that company.
Thanks, usually the annual report of the company ends in March 31 but many companies hasn’t released their annual report yet what is the reason but I see they release the quarterly report in time.
It could just be internal delays.
Good Day Karthik,
I was analyzing one of the script which is under good management and consistently growing at a good pace.
But when I calculated using DCF model it gave the Intrinsic value between (2,325.7) – (2,842.5)
What does it indicate?
P.S: I have cross checked
In this case how to identify it real intrinsic value.
Please advise
Siva
I guess the growth rates could be high? DCF is sensitive to all these variables. You need to be cautious.
hi,
how can i do fundamental analysis on mcx and also does the same technical analysis work for mcx.
Best Regards
Shashishekar T S
FA on commodities will be quite tricky as it varies for each commodity. Yes, same TA can be applicable on commodities.
where can i learn FA on commodities in zerodha…or do you suggest any book
I’m not sure about FA on commodities. I guess the information is scattered and not really contained in a single place.
can you suggest any book to read for FA and TA for commodities…
Nothing that I know of.
hi,
i have account in zerodha. i want to trade in mcx . i want to learn about commodities. i went through all your education. now i have doubts. where and how can i learn about trading commodities. can you suggest some books (both for technical analysis and FA). can you suggest . where can i get news related to commodities. is possible that you put up strategies for commodities trading like you did for options or can you suggest books for commodity trading strategies.
Best Regards
Shashishekar T S
I’m assuming you have read through this – https://zerodha.com/varsity/module/commodities-currency-and-interest-rate-futures/
The same set of TA rules applies to commodities as well, nothing special. FA on commodities is not easy, as it changes for each commodity.
Hello Kartik
Can you explain me TA in some more depth. Or the provess of conducting TA.
Have you gone through the module on TA? I think it’s a great place to get started.
By regular investing through SIPs, I have created wealth more than 50 lacs at the age of 39 Years. Around 4 months back, I liquidated 25 lacs and invested in PMS of Birla Sun Life for better returns. Considering different types of fees of MFs and PMs charge thus eroding your wealth, I am planning to enter in equity market independently in around 1 year time. Till then I will study stock market to be a confident stock investor. Yours is a good source of knowledge which will definitely help me to become independent investor. Thank you so much!
Query: Once I become knowledgeable in stock trading, would it be a good option to shift all corpus invested in MFs and PMS in direct equity or should I still have the exposure in MFs? Please suggest.
After all these years in markets, I still do invest in MFs. This is besides having my own little EQ portfolio. So if you ask me, having exposures to MFs is good….I consider that as a hedge against my own investing… but I do secretly wish, both MFs and my own investing eventually pays off 🙂
Thanks Karthik Sir for the prompt response.
My next question: How much % of total corpus should be exposed to MFs and how much % to equity (assuming a good knowledge of investing in stocks) ?
If you are fairly comfortable investing in Stocks, then invest at least 30-40% in direct equity and the rest in MFs. Over time, you can think of increasing this to at least 60% in direct stocks.
Hi,
Recently my dad transferred his portfolio of equity shares in my demat account some of which aren’t trading on stock exchange or may have been de-listed like Elder pharmaceuticals, Melstar Info, Zenith infotech, Arms Paper ltd
How do I sell them ?
Few people suggested to contact the co. directly, but how do I go about it?
You will have to touch base with the company’s registrars for this Jinal. If they are delisted and closed down, then I’m afraid there is nothing much that can be done.
Hi,
Previously there were link of ibook of each module but now there is only pdf available , can you please provide the link of ibooks of all the modules.
We had few issues with ibooks, Nirmal. Hence withdrew links.
Hiii sir,
can you tell me how can i download all the module in pdf format.
I like to inform you that i dont have any accout with zerodha.
Zerodha Varsity is free for all and not really restricted to Zerodha’s clients – although we will highly appreciate if you can join us 🙂
Scroll to the bottom of the page to download the PDF – https://zerodha.com/varsity/module/fundamental-analysis/
MS Excel is propreitary software hence is not free. Libre Office is free, open source and available on any operating system. It has a spreadsheet program “Libre Office Calc” which has the same features as MS excel.
Download link is as follows: https://www.libreoffice.org/download/download/
It’s good to include your point in main content.
Hi Karthik. What is the benefit of bonus share to shareholders when the price of stocks adjust accordingly after giving bonus? Please elucidate. Amit DUBEY
The bonus is a stock reward and you will end up with more number of shares (dividend is cash reward). The dividend yield goes up when companies give out bonus. Apart from that, no other benefits.
its nice module, great induced me
Its all yours to read 🙂
Hello sir
How are you? India imports a large chunk of its crude oil imports from OPEC nations. Then why does the fluctuation in Brent crude oil affect india’s CAD?
Thank you
Varsity student
Guess we import Brent like variety from OPEC nations.
I’m so grateful for these modules and I have been following them for quite some time. The fondness actually led me to open a Trading Account at Zerodha if I may say so. But I really miss the earlier quality of the modules. I notice some changes and I really feel the need for a “contents/index” page which is not included anymore. The full page cover looked better too in my opinion. Just saying.
Thanks.
Vivaswant, thanks for the kind words. I guess you are talking about the UI bit, which was changed few months ago. Will pass this feedback. But I hope you continue to like the quality of the content 🙂
Dear sir,
U have told u ll upload financial modelling so when could we expect that excel sheet
Dear sir,
U have told u ll upload financial modelling so when could we expect that excel sheet and also kindly mention for which site it will suitable to upload ur excel sheet
That will take sometime Kiran, I’m currently working trading systems.
Ok tq
Hi Karthik,
Thanks for lucid tutorials .Really enjoy them as a refresher.
I have a question. What database do professional analysts use to screen stocks. In US , i remember using Compustat or Factset for research. What is the indian alternative. Please advise.
There are quite a few options – check out –
1) smallcase.screener.com (paid)
2) screener.in
3) ratestar.in
Thank you.
Cheers.
Hi, this is more of an opinion than a query exactly
>One can expect the core portfolio to grow at a rate of at least 12% to 15% CAGR year on year basis.
If MFs(even including expense ratio) and good smallcase baskets can deliver this, is learning to value companies worth it for individual investors instead of leaving it to institutions and fund managers that specialise in it?
And if retail investors can do better than this, is regulation(possibly in terms of allowed risk and how that risk is modelled) the only thing stopping institutional investors from using these same strategies, or is it the quantity of AUM that exceeds the capacity of some strategies?
I’d suggest you read this book – https://www.amazon.in/One-Up-Wall-Street-Already/dp/0743200403 🙂
Anyway, yes, if you are happy with 12-15% returns (which I think is fantastic), then a structured (or ready made) portfolio is a great approach. The only thing stopping institutions investors is a mix of both regulatory and internal investment policies. This is explained very well in the book that I’m talking about.
Cool, thank you!
Cheers!
sir,please tell me when to buy and square off the fundamentally strong stocks based on technical indicators.Thanks in advance.
Very hard to summarise this as there are multiple parameters. This will come to you naturally as you devote more time to markets. But yes, if you are starting off now, look at moving averages as an option.
Sir,
Suppose if we have a short position open and divident is declared for the same position should the divident amount will be an expense for us as we are short on position… Please clarifay my doubt
Thanks
No, you are not entitled to dividends if you have short futures (or intraday) position.
Thanks sir
Cheers!
Happy New Year…….one query, if we invest passively in nifty etf, we get decent return so why cant invester do sip in nifty riskfree basis. eg in USA max funds parked in Index ETF (Vanguard, SPY, Ishare)
You can, in fact, this is as good as investing in a Mutual Fund. But do note, it is not risk-free.
ಜೆರೋಧಾ/ಕಾರ್ತಿಕ್ ರಂಗಪ್ಪ ಅವರೆ,
ಜೆರೋಧಾ ವಾರ್ಸಿಟಿ ಚೆನ್ನಾಗಿದೆ. ಆದರೆ ಕನ್ನಡದಲ್ಲಿ ಯಾಕಿಲ್ಲ?
ನಮಸ್ಕಾರ – ಸರಿಯಾದ ಟ್ರಾನ್ಸ್ಲಟೋರೆ ಸಿಕ್ಕಿಲ್ಲ ಸಾರ್.
How can we track the small good companies whose little data is available.
And also how can we come to know about the core managment, as we dont know about them much. Whatever we find is not appropriate.
If it is listed then to a large extent, you will get the data required. Look for it on the company’s website, under the investor’s section. However, if it is unlisted, I’m afraid data is not so easy to get.
Sir, thanx for ur efforts towrads educating peoples
I try to find latest quaterly result of companies
but not able to find all details even it not present in
company or exchange website. So can u plz suggest me
any source where i can find quaterly ressults for doing my research.
Check out screener.in
Hi All
Above fundamental and basic details are good which every trader should know and follow.
But my question is common thought every one thing of it.
Is there any website where we can get top performing companies list every day. it helps to fresher to view and invest….
This depends on what information you are looking at, Raghu. There are quite a few sites. Check screener.in or ratestar.in or https://screener.smallcase.com/welcome .
Hello, Superb information for beginners. Fundamental knowledge. Thank you very much.
My question how to know the company is going to change and going to be multibagger. Like Eicher motor in your example, if someone would had checked in 2010 about the past 5-7 yrs performance of the company, its not fitting into fundamentally sound company. What one would had looked in 2010, to decide that that compnay is going to give enormous return in future?
Tejas, you cannot know this in advance nor can you time it. The only thing you can do is deep dive into fundamentals and know the company well. If the market is undervaluing the company, then you can hope to see a multibagger. Remember, a good company with good fundamentals cannot remain undervalued for long, eventually, it will be discovered.
Hi Karthik!
Thank you so much for the content. It is really very good. I want to know about how passive investors can use NIFTY strategy indices, NIFTY SME EMERGE (How to identify which strategy is useful in which context)?
This is a very tricky segment, Akshay. You will have to analyze the companies here like a VC investor, the risk element is quite high. Also, there are lot sizes here, which means there is a minimum number of shares you will have to buy.
Thanks Karthik! How can we use NIFTY strategy indices( NIFTY alpha 50, NIFTY low volatility 30 etc.) for passive investments? Is it a good strategy to pick 10-15 stocks from these indices & restructure our portfolio as per changes in the indices? How to decide which strategy index to choose for a particular market scenario?
Akshay, if your objective is to build a passive portfolio which mimics an index, then maybe you should check out the ETFs. There are quite a few decent ones listed on the exchange. Of course, the liquidity is low, but then should be ok for a passive strategy.
Thank you very much Karthik!
Cheers!
hello sir,
i am 1st year student , a curious beginner learner about stock market.
i want to learn ….in what way i can use FA to value and analyse growth of Small Cap companies and medi cap ??
Also ….there are lot of small cap companies …..using the skill of FA …how to Filter the right one ???
Happy to note that you’ve taken interest in stock markets this early on in life, good luck 🙂
I’d suggest you use stock screening filters such as https://www.screener.in/ and https://screener.smallcase.com/welcome to filter stocks.
Hello sir
About companys Executive chairman’s ,CFO ,directors salary
For example
1.Haldyn glass( market cap 200 cr)
Executive chairman salary 1.25 Cr ( annual)
Director salary 1.22 Cr( annual)
And its peers borosil glass ( m cap 2331cr)
E.chairman salary annually 3 Cr
Directiors salary annually 3.5 Cr
All data taken from their Annual reports
Now my question is
Haldyn glass salary to high in compare to borosil glass even a small company ???
Or borosil salary to low even big company compare to haldyn ??
Plz elaborate it .clear my confusion
I;d consider the former i.e “Haldyn glass salary to high in compare to borosil glass even a small company “, not a great corporate governance sign according to me.
Hi
Thank you sir
Hi sir
Could u suggest me some ration related to chairman ,directors salary ?
Like net profit to salary ratio etc ?
Check the annual report, Amit. It will have all the details you’d need.
Welcome!
Hi sir
I got detail from annual report but according g to you which salary is good in proportional to market cap ,net profit etc ?
Because in kesar petroprodycts limited
Net profit 20 Cr
Chairman salary 310000 annualy
So I am confuse about salary which is ideal ?
So I request you to post your view in detail.
Ideally, the salary of the top guy should not be more than 4-5% of PAT.
If Eicher Motors was fundamentally so strong, why didn’t its priced moved significantly between 2006-2010. And what was the cause of sudden “Burj Khalifa” like chart movement after 2010?
Well, the stock was not ‘discovered’, during that point. I like the Burj Khalifa comparison 🙂
Haha…Thank You..:)
plz publish a new pdf format
Are you unable to download this?
Hai sir.
How to get details of promotor and directors
Wikipedia if you have suugest any application or website.
In ex: if promoter or director charged in any illegal activities their punished by law.
How to get these details sir.
Best is to look at the annual report, you will get the entire details 😉
Sir from where you have taken charts? Can you please help me on that?
All charts are from Chartink.
Hai sir.
I am in zerodha client.i have to trade only zerodha mobile app .
Sir i want to see gold price chart .
How to get the details .and how to activate zerodha small case screener.pls help me sir.thankyou
For gold chart, load the gold’s future contract on in the MarketWatch and then click on the gold contract. When you do so, you will see the chart option. For screener, I’d suggest you check this -https://help.tickertape.in/hc/en-us
Sir initially thanks for your guidance.
I got gold chart in market watch page.
That name is gold share.but I couldn’t get the smallcase screener in mobile.
What will I do sir? Thank you.
Joseph, I’d suggest you check with the smallcase team for this.
does stock price chart in kite gets adjusted after dividend is declared or paid like it happens on issue of bonus shares .
Yes, it does.
it’s a simple form personified ever, can’t get an analysis as simple as this, thanks ZERODHA, woke up very late to ZERODHA,really regreting ,please let me know where to look for CAGR as I am in a initial stage of learning, please do convey,atul
Its never too late to learn, Atul 🙂
CAGR can be calculated easily, check section 6.7 in this chapter –
https://zerodha.com/varsity/chapter/the-stock-markets/
HOW TO LOOK FOR ‘CAGR’ of the company OR WE HAVE TO CALCULATE IT PLEASE EXPLAIN
Check screener.in, they give out CAGR on various fundamental parameters.
Sir,as you mention chapter 6.7 is not visible in my module,does it because of not a member,sir or do I have to login first
Not really, Atul. All sections are freely available for all to read. Please do refresh your browser once.
Thanks for the very good content on stock markets. In the TCS chart shown above, the price is shown around 2500, but when I seached the same chart in google shows a different price at that time, can you please check?
Ajith, please check this – https://tradingqna.com/t/why-is-there-a-difference-in-the-ltp-on-the-marketwatch-and-on-different-timeframe-charts/15801
1. As you mention above annual report is best for fundamental analysis of company. Is there any additional thing, which we can go for??
2. Money control data is reliable for technical analysis and also mention some websites which is helpful for TA and FA.
1) AR is the best resource, no substitute for that.
2) For both I’d suggest you use Kite. Kie has great charting for TA and also has the Thomson Reuter’s FA report called Stock Report+
the app and the information is very helpful in nature and it is quiet good enough then i must say that the information of the company about trading and the knowledge it is imparting is very good for the company to retain its customer and also it is very helpful for the customer who are the beginners in trading.
Glad to hear that, Partha! Happy reading, keep going 🙂
Hi Karthik,
What is the website to find Industry related data for Capital goods sectors like Heavy Engg and Road construction?
Thanks,
B Dutta
The annual reports (management discussion and analysis section) is a great place to source this data.
Hi sir
From where can I get data of all stocks market cap.and quarterly gdp data ( figure)?
Check out these guys – https://www.tijorifinance.com/
Thank you for reply sir
I didn’t found that data
Amit, check screener.in or ratestar.in , you will get the info.
Hello sir,
I have one query.
Can we invest in those stocks that are in ASM : Stage 1 ?
I have one stock; at that time it wasn’t in the list but now on BSE site it shows ASM : Stage 1.
Please clarify.
Thankyou.
You have to invest in stocks which are fundamentally strong…and you need to invest for a long term period. I’d suggest you look for the criteria for ASM, if it cast any doubt on the business prospects (Which is what matters for the long term) then it may not be worth it, else it could be. Check this – https://www.google.com/url?q=https://www.nseindia.com/invest/content/FAQs_Additional_Surveillance_Measure_ASM.pdf&sa=D&source=hangouts&ust=1552372486445000&usg=AFQjCNHFc19VQ3LtMJEj6qqmKrJQMW4InQ
thankyou sir
Can you please provide this document in Hindi.
Please explain how we can find this type of effect early with fundamental analysis (Eicher motors stock made a relatively negligible move between 2006 and 2010. The real move in Eicher Motors started only from 2010) .
We are considering the regional language version, hopefully soon 🙂
I think the only thing that helps is to read the balance sheet and P&L properly and get sharp at it 🙂
Hi,
I could read in on of the comments that Long term trading returns are not taxable. Could you please let me know at least for how much time I will have to invest so that it can be tax-free.
Thanks in Advance..!!
Vinod, investing in Equities is no longer tax-free. LTCG (long term capital gains) was not a taxable event until it was taken out 2 years ago. It is now 20% for gains above Rs.100,000/-.
Good Start .
iam asking you .what is the use of ms excel in technical analysis can u provide some information about that?
You don’t really need to work on an excel if you have a good trading/charting platform like Tradingview or Chartiq.
Sir,
may i know is which one is less risky among intraday, call and put options, delivery.
All have their own features,
intraday is minimum loss if qty is less but for safe if i put a stoploss it hits and then it reaches my target most of the time
call and put if it goes reverse all my investments goes off but advantage within shortperiod big amount
delivery is safe but when it goes low and never rise in its price that becomes again a loss
so am talking here only about losses i want to know which among these is less risky
Intraday options are the riskiest in my opinion 🙂
sir,
so it means delivery is the best according to your opinion
Yes, especially if you are starting new.
Sir,
Will you post any PDF regarding Value investing & intrinsic value? How to Calculate intrinsic value?
They are kind of covered in this module, Dinesh.
Hello sir,
You are doing great job !!
Just want to know to study economy or industry, we need to read alot of news. So, how can we gather all the news realted to stock markets and do analysis of the same. I am using zerodha pulse but still there is always some news that are left.
So, Can you please tell me how you get updated from all the financial news.
Thanks
Palak, the best way is to pick a good business paper and read through it consistently for a few weeks and you will be completely updated on economic activity of the country.
i daily study economic times. Can you please tell me ur best pick among newspaper. 🙂
I prefer ET and HBL 🙂
Thankyou sir 🙂
Good luck, Palak.
thank u sir for the material.
just want to ask you that the material u have provided in this fundamental analysis course is that enough to analyse a company and to make a decision , or we need to study further something else?
It is more than sufficient to get started, Gaurav.
Sir suppose we started studying a company.
Then after doing fundamental analysis we found the company suitable and we buy the shares of that company.
After that how we can track that company and that sector on a periodically basis other than annual and quaterly reports
You will have to stay glued in on the news and track the company closely, Gaurav. No other way 🙂
Sir that is what i am asking how to track the company apart from annual reports
I usually set the company’s name in Google alert. Any developments will appear on the google alert.
Thanks ……
Can u just explain in brief how to read a finance newspaper in an efficient way to get maximum useful news out of it
Gaurav, here is a simple trick – try and make a list of journalists who write meaningful articles and follow them on Twitter. Whenever they write something new, they usually tweet about it. It does not matter which publication. So you kind of curate your own news feed this way.
Sir how can we get the hard copy of annual report of any company?
You will have to contact the company directly, Gaurav.
Hi Karthik,
I am looking for “pdf” format downloadable files for modules in Varsity. Where i can download it? I cannot see any “download as pdf” button.
Please Reply.
Scroll to the end of the page and you’ll find the PDF download option. https://zerodha.com/varsity/module/fundamental-analysis/
We don’t have the PDF for module 11 and 12.
Thanks Karthik for quick reply. When the pdf versions for chapter 11 & 12 are going to release?
Module 11 will be available when its complete. Not possible for 12.
Sir, do Indian markets follow the GICS, if yes then where can we get the data for classification and if no which classifications standards are used
Ah, I’m not sure about this. Maybe you should explore this – https://www.niftyindices.com/
Thank you,
I was looking for information on these all over internet. I appreciate for your patience and time to make this.
Happy reading, Praveen.
Sir, Please suggest me a good news paper for FA.
HBL.
Thanks a lot Sir, for providing the valuable information.
While accessing the varsity through phone we do have 3 levels of Information(for Beginner, Intermediate and professional ), where do we get those options while accessing through laptop.
That’s the app, Kumar. We don’t have such distinction on the web version.
“Deferred Tax Liability’. The deferred tax liability is basically a provision for future tax payments. The company foresees a situation where it may have to pay additional taxes in the future; hence they set aside some funds for this purpose. Why do you think the company would put itself in a situation where it has to pay more taxes for the current year at some point in the future?
Well this happens because of the difference in the way depreciation is treated as per Company’s act and Income tax. We will not get into this aspect as we will digress from our objective of becoming users of financial statements. But do remember, deferred tax liability arises due to the treatment of depreciation.” Is deffered tax liability already incurred taxes but not yet paid? Or is it different? Pls. enlighten me. Thank you.
Think of it as a suspense item, it may or may not be required to pay. The company would be working on clarity and if they are required to pay, then they would have buffered for it anyway.
Dear Sir,
Where should we get CAGR data of all Nifty stocks.
Thanks in advance.
Vidyadhan Gedam
CAGR of what?
कृप्या हिंदी भाषा मे उपलब्ध कराएं
Thanks to Team Zerodha
हम इस पर काम रहे हैं, कह भी जल्द ही उपलब्ध कराया जायेगा।
Thanks for the courses. TA course was an awesome one.
Team Zerodha. Keep Innovating.
Cheers.
Happy learning!
Hi Karthik,
Your explanation and notes are simply superb! Precise and to the point, very well explained. I’m very thankful to you for this.
Taking fundamental analysis further, Karthik can you please solve this query for me. There are 2 US Rates mentioned below.
Where can I find the Indian Rates for the same? Also Is there any website I can refer to find these current rates every time.Your
Help is greatly appreciated. Thanks!!! 🙂
1.20 AA Corporate bond Rate %
2.Discount Rate 10y fed note %
Yes, it is avaible here – https://www.rbi.org.in/ , look at current rates on the right-hand side.
Thanks a ton Karthik !!!
Welcome!
Sir,
I am new to stock market.I am in learning phase so at present i have invested a very little amount in direct equity. I want your view on mutual fund investments regarding Lump-sum and SIP. Sir i have studied performance of various mutual funds and made a plan to invest 30% of my corpus in Large Cap, 20% in Index Fund ,20 % is large&Mid cap and 30% in small Cap. Sir i am of opinion that i should invest in these MFs in lump-sum to maximize the return. I have developed plan with respect to benchmark indices MFs are following to invest at different levels. Sir kindly give your view on it. Will lump-sum be beneficial over SIP or should i re-access my strategy?
I have heard about this website from a friend and i am in the process of learning FA. Till that time i am investing in MFs only through Zerodha Coin.
Large-cap and index fund is like of overlap, I’d suggest you stick to index funds. If you have 100 to invest, start with 50 lump sum and then keep sipping. MF is a great way to invest, so please get started on it 🙂
Good luck.
Hi Zerodha team,
If we check stock trade price retrospectively and cross validated with NSE data, there is huge difference between the prices appearing in yours graph and actual price on any historical day (2-3 year old date).
For example: I bought Motherson Summi stock at 313.40 on 13th June 2018 but if now I check the price, yours graph says that on that day this share was traded in 206-209 price range. Even I checked the value on NSE site and found that 313.95 was open price and 309.40 was close price. How come its possible?
Either I am missing something or there is some technical error.
Such a gross difference is not possible. I’d suggest you call our support for this and get this clarified. Thanks.
Hi Karthik, I have a thought . We can achieve 0.25% returns per day on our investment(intraday) using technical analysis . after adding up this small percentage together we can achieve 75% before charges and i think ~60% return after removing charges. For the same .25% return we can accumulate ~27500% for 10 years and ~7500000% for 20 years. Can this idea of doing intraday trade and earning/ Accumulating wealth sustainable for long term?
No, not possible.
Hi. If I have shorted a scrip but it has hit UC, what would be the implications with the fund balance. I had 32K as my fund balance while I experienced this scenario on Thursday. I’m yet to see any margin reflected back in my account. Request info in this as to what is this scenario and its recursions?
The position will hit an auction and you’ll have to buy it at a much higher price. I’d suggest you please speak to the support desk for this.
Hi Karthik, Unable to find annual report of OIL INDIA LIMITED neither in its website nor in NSE website. What can i do?
Can you do a generic google search? You will find the link from BSE.
Hello sir I am a 7 year old kid and I wanna know that if i want a great profit should i go to be a long term invester or a short term one………..
And if a short term invester could u pls explain why😊☺
Woah! Are you sure you are 7 years old? I’m amazed!
You need to be a long term investor 🙂
Thankyou in advance😊😊😊
Happy reading 🙂
Hi Karthik
Considering working professionals might not have time daily for short term trades, is it a safe bet if we go only for long term wealth creation investments? What is your opinion on the same?
There is no term called, safety in markets, but yeah long term is better than short term.
Why mobile version content is different from PC content
No, not really. It’s the same content broken down to small bite size content.
First upon nanu zerodha ge dhanyawad galannu helali ichhisuttene ,estondu completed aada marketing Annu istondu sarala bhasheyalli barediddarala,so I want TA&FA are to be let’s more details like maping, statistics etc.
Thanks for the kind words 🙂
Happy reading!
Hi,
I am not interested in trading and dont want to split corpus into 60, 40 respectively. I just want to invest long term 100% like 10 years +… do i still need to have technical analysis abilities?
Nope, you dont need to learn TA for that.
valuable lessons
Your Explanation and crisp and clear. A huge Thanks for your work 🙂
Happy learning, Manju!
is it necessary to have good knowledge of Technical analysis for getting fundamental analysis knowledge?
Not really, both are different.
Zerodha varsity is the best platform for digital financial literacy. Special tha ks to Mr. Karthik for keeping the concept in lay man language.
Thanks for the kind words, Jay! Happy learning 🙂
Hi Sir, coming back here after a brief time, just wanted to ask whether Zerodha or True Beacon hires candidates in research area for entry level role ? Where can I forward my resume for the same ?
TB probably does, not Zerodha.
Ok Sir. Thanks.
Thank you. This is motivating.
Happy learning, Sandesh!
Sir why don’t you believe in technical analysis as much as fundamental , The returns in options are far superior than that of value investing. If Investing is superior, is it even possible to make a career trading in the markets?
I like both the techniques, just that I have a soft corner for FA 🙂
If I would want to know the CAGR of the stock then how do I find it. Please advise
Lots of websites publish this information Gaurav. Please do look around.
Good Introduction of the Subject with purpose of study for FA
Happy learning, Tulasi.
An alternative to excel is Libre office spreadsheet. Almost equal to excel for the intended work of FA
Yes, but I’ve not really used it, so cannot comment on it.
Respect for company grows after every line of reading !
Thanks and happy reading, Kishan 🙂
I am beginner in the stock market and I am interested in investment, will these documents help me?
Yes, it certainly will help.
Thank you Karthik for putting in all the work. Have some questions,
1. Is there any value investor club present in India which publish value-stocks / good-businesses? These resources help you to start research on stocks that are meaningful as others are eliminated. I understand that we will have to carry fundamental research anyway.
2. As there are a lot of great value investors in US, and resources that are present there(like Berkshire newsletters) Does it make sense to start value investing in US? I understand accounting policies and all would be different and would require learning.
1) Not sure Mohit, but I think there could be sub-groups within the Value picker forums, maybe you should check that. Also, check the Moneylife network for this
2) From what I understand, finding value in very difficult. But I could be wrong, I’ve got 0 experience in the US markets.
Thank you, Karthik. How can one stay updated with all the new good financial blogs and/or magazines like Value picker, value research etc?
Try RSS feeds if they have one. You can follow us on Twitter to be updated about our activity.
Very much useful for beginers.
Also everyone should have this knowledge before trading .
Appreciate your effort
Thanks guys.
Greg from Navi Mumbai
Happy learning, Greg 🙂
If we are a long term investor can we skip Technical Analysis and start with Fundamental Analysis
Yes, you certainly can. But TA is also good to know, may help you at some point.
Hi Karthik,
for getting the latest news about the companies. Please mention some good tools or websites those are helpful.
You can download Zerodha Pulse on both Android and iOS.
Dear team Zerodha,
Thanks for making available this reading material pertaining to fundamental analysis. The explanation is in a lucid manner and simple enough for even people from non-finance background to grasp the underlying financial concepts really well.
Happy learning, Sanjay!
Hello Sir
I have query that if I complete any of the goven modules in Varsity, how will I be able to take the quiz for achieving a certificate?
Parul, you will have to take the quiz and certification on Varsity app.
Hello sir ,
How can we compare corporate bonds and know about their risk involved and find the right one as per our risk appetite and desired returns
I’d suggest you look at the Mutual funds module, have discussed this.
Thanks for you guidance sir 🙂
Happy learning!
Concepts nicely explained for a layman to understand. Thanks for sharing your knowledge and expertise
Happy learning!
Hello Sir ,
First of all thanks a lot for this beautiful and organized course .
I am a collage student and I have a bit busy schedule , so I decided to skip the technical analysis part and focus more on fundamental analysis , but the course first covers technical analysis . Can I follow zerodha varsity for fundamental analysis directly ?
Thank You
Yes, Atharva. Both are independent topics are not really related. Good luck.
After Announcemet of corporate actions like split, issuing bonus shares; is there any specific duration in which it would be completed. (or)
What is the duration between announcement date and record date ? is there any policy it would be done in specific duration or it depends on Company?
There is, Pavan. Its just that I don’t have that info handy for you 🙂
helpful thanks
Happy reading!
very very useful videos thank you
Glad you liked it. Happy learning!
Please provide Hindi pdf.
In versity app. There shall be a provision for highlighting a specific line, numerical or etc. For better summarizing our reading & taking notes. Is it possible?
Anyhow, this is a very good tutorial.
Thanks a lot .
Thanks Mohan. Making a note of this. But there is a bookmark feature which you can use.
A huge bow to Karthik Rangappa and to the whole Varsity team for providing such a decorum, as an adolescent I’ve owned some of the destructor business you mentioned above without having zero FA-TA knowledge so this write-up is a enormous roadmap as for me. Thankyou
Thanks for the kind words, I hope you continue to enjoy learning on Varsity 🙂
Hi Sir , Like where can we find the smallest to biggest news related to the market in Depth which is easily understandable.. Please Sir , tell us some sources !
Check this Vishwas – https://pulse.zerodha.com/
Thanks Karthik for arranging the information in a simple and understandable way. Really helped me in understanding the concepts
Great read for newbies to stock investing
Glad you liked the content, Rakesh. Happy learning 🙂
Sir , As a intraday trader I required to know about fundamental analysis??????
Not required, but it harm if you do 🙂
how?
Can you tell which CAGR you are referring here? Income / EBITA ? Where I can generate such charts?
Check Tijori Finance, Leena – https://www.tijorifinance.com/timeline/all
Thank you for creating and wonderfully compiling all the information in an easy to understand language!
Beautifully Explained, And if Chat GPT is opened in a new tab, this is really interesting to learn !
I have read module 1 i.e basics now can i start with fundamental analysis directly without reading technical analysis?
Simple and very clear explanation
Thanks for the effort
Happy learning, Basim 🙂
Thanks sir for this erudition of fundamental analysis .
My question arise from the 4th point of tools of F.A
How ms excel can be used as fundamental calculation in F.A
Can you please answer with an example?
You will get an idea in this module 🙂
https://zerodha.com/varsity/module/financial-modelling/
There is difference between “trader” and an “investor”.
How can a investor make a living if the said has parked their money for a longer period of time. How he/she may manage their daily expensis (Considering stock market is the only source of income)
I have changed my stream from core mechanical engineering to finance and would like to know how an investor can make a living out of stock market.
Thanks in advance!
It depends on what kind of investor you are. I know many large investors live off company dividends, but their investments in such companies is quite a bit. Otherwise, it is not possible for ppl to make a living from investments.
Where will i find the indusrty releated data in Internet?
i love you sir
We love you too 🙂
In chapter 1.4 – Tools of FA, librecalc included in libreoffice may also be mentioned, which is an open source & free tool which can be used instead of MS Excel.
Yup, at that point I was using only MS excel, so recommended just that. But you certainly can use opensource software.
If the Varsity is in Kannada it would be good.
I’d love it too, but its too difficult to make this in regional languages.
Sir,
Will you add a Reference and Resource Section and further reading section
dear kartik sir, your exlainations are wonderful. so easy to understand. its really becoming interesting to read and learn from varsity. Thanks so much to you and your team.
Happy learning, Doctor 🙂
Dear Sir, Thank you so much for sharing all this detailed information with us which will be useful for all the earners like me for the years to come. Sir I just have one humble request, if you can guide us on how we can study and research the companies using the modern tools that we have now, such as ticker-tape, screener.com, etc so that we can short list the stocks for long term investing, or find about the good growth companies. If you have already shared this knowledge then please let me know where do i access that from. your sincere student, jitu.
What we have discussed here are essential principals and core fundamental concepts. Portals like ticket tape, screener, or Tijori helps you extract the information. Not sure if we can delve into explaining how to use such portals. But let me check if there is any material on that.