Investor Choices

Basics of Top-Down Approach (EIC Analysis) Basics of EIC Analysis which will be helpful for a common man to understand. How to design a portfolio. An optimum portfolio is that which grows faster than the economy when the economy expands and falls less as compared to the economy when the economy contracts. 1) Economics Analysis: Basically economic work in the cycle. Which has two phase expansion and contraction we can simply identify the phase by observing our surroundings. Let's say, if we hear GDP is growing, more employment opportunities are being created, Infrastructure improving, MNCs are investing etc.  these are the examples of expansion economy and contraction is vice versa. 2) Industry Analysis: After analysing the economy we need to pick those industries which perform as per the economy cycle. Industries are classified as per their nature how they  perform as per the phase of economic cycle. 3) Company analysis: It is much easier to identify a...

 Want to invest in the Stock Market but am confused about which INDUSTRY  should I invest in??? This is for you ! Industries basically work as per the Economy's (Expansion/Contraction) There are 4 types of industries. 1. Growth Industry :   New Start-up Stage in Industry Life Cycle Solid Earning Figures Risky Stock High Return.   2. Cyclical Industry: Growth is dependent on Expansion and Contraction Of economy. Include those that produce durable goods or heavy equipment. People spend more when they have good income. E.g.. Airline   3. Defensive Industry: Food Processing Industry. Provides necessities for consumers withstand recession and depression. E.g.. FMCG   4. Cyclic Growth Industry: Both characteristics of Cyclical and Growth Industries. Change in technology and intro of new models help them resume growth. E.g.. Automobile .   Everyone wants to beat the benchmark. It can be Nifty 50, Nifty Mid Cap or any other INDEX.   So attached video...

  Porter 5 Forces Analysis Cement Industry (India)   India is the second largest producer of cement after china. Total production of cement is approx 350 mn tonnes since the past couple of years. Cement industry is a kind of ' cyclical industry ' which is dependent on expansion and contraction of the economy. Let's take a look how it depends. For example if the economy is growing only then there will be construction activities like Housing construction, Commercial Constructions or Industrial Constructions. Government initiatives are also helpful for the boost in this sector. If we pay attention, the government has taken initiatives by allowing expenditure outlay of approx  25,000 cr out of which 13,000 cr is allocated for the project of 98 smart cities.  Which is somehow creating opportunity in the sector. This sector is majorly controlled and supervised by the government which interferes with its price. It is a kind of concentrated sector as we can see on...

How to analyse the Industry?   What is "Porter 5 Forces Model" and how can it be used?   Before any kind of investment in the share market it becomes necessary for us to analyse the Industry. For industry analyses we have a model called “Porter 5 Forces Model". This model basically works on 5 key parameters which should be considered before any kind of investment. Remember investment always does not mean Equity, it can be Debt or you want to start your own business also. So these are those 5 key parameters.   1) Threats of New Entrants  2) Bargaining Power of Buyers  3) Bargaining Power of Suppliers  5) Threats of Substitute  5) Rivalry among Existing Customers    1 Heavy Capital Requirement? 2 Economy Of Scale (Can Business produce High volume with Lower Cost)? 3 Business Differentiation (Which makes t...