Blog

Best Stocks to buy in India for long term Investment

Stock Market

-

March 24, 2018

best stocks

Looking for Best Stocks to buy in India for long-term Investment? Well, today we will discuss a method to identify Best Stocks to buy for long term Investment. In the end, I will also share few best stocks for long-term investment.

As you are reading this post, I assume that you are interested in stock market and want to grow your money. In order to do so, you might have read a number of stock market books, personal finance blogs, investment magazines. There may be a possibility that you have subscribed to Stock TIPS and recommendation of different brokers.

Whatever the case, one thing is sure that if you don’t do your homework correctly you are likely to lose money in the stock market. You have to be firm in the selection of stock. If you don’t know how to select stock here is a method to identify Best Stock for Long-term Investment.

How to Identify Best Stock for long term Investment?

Fundamentals of the company

First, you need to drill down to the fundamentals of the company. It is also known as Fundamental Analysis of the stock. The exercise of fundamental analysis will help you to filter out a fundamentally strong company. It is very important point for the selection. If the company is not fundamentally strong, there is no need to discuss further on its products/services, competitors, future prospects etc.

For fundamental analysis, you need to look into financial of the company. Find out 8 financial ratio and 2 key indicators. I use screener.in website to find this detail. The details about 8 financial ratio and 2 key indicators are given below.

Also Read – How to Find Multibagger Stock for Investment? Flowchart

Net Profit – Net Profit of the company should be increasing for last 5 years
Revenue – Revenue or net sales of the company should be growing YOY
Earning Per Share (EPS) – EPS should be high or growing for last 5 years
Price to Earnings Ratio (P/E) – Low compared to companies in the same industry
Price to Book Ratio (P/B) – Low compared companies in the same industry
Debt to Equity Ratio – Should be very low preferably less than 1
Return on Equity (ROE) – Should be greater than 20%
Price to Sales Ratio (P/S) – Should be small less than 1 is preferred
Current Ratio – Should be greater than 1
Dividend Yield – Increasing for the last 5 years

If you are not aware of financial ratios you can go through – How to analyze Fundamental of the Company?

Once the company is able to fulfill mentioned criteria you can go ahead and check next step.

Products and Services Offered by the company

Quality of product and services are utmost important for the selection of the stock. Always invest in the companies that you understand. There is no point in investing in such company where product detail is not known or business model is not known.

Ignore the stock market, ignore the economy, and buy a business you understand – Warren Buffett.

Future Business Potential

The next point is checking the future business potential of the company. Always look for a company with long life at least 10 to 15 years. Find out if people will be using product and services of the company after 10-15 years from now. Logic is simple if product or service is having future demand company will get future business and make a profit.

E.g If you are looking at the stock of IT Company you should look at present demand and potential growth in demand for the IT products or services offered by that company in future.

Focus on the Future Productivity of the assets – Warren Buffett.

MOAT of the company

A MOAT is a term coined by Warren Buffett. Moat means the competitive advantage of the company over rivals. You should check if a company is holding monopoly business or in the business where entry barrier is very high. E.g Telecom or Refinery where entry barrier is high due to cost and regulations.

Another important point to check is if a company is holding high brand value with technological or cost advantage.

E.g ITC is in the business of Cigarette with 80% of market share and enjoys nearly monopoly situation.

Innovation and Unique Selling Points

Innovative products or Unique Selling product is another important factor in the selection of best stock. Let’s try to understand this point by example. You must have heard a success story of FMCG brand Patanjali. A unique selling point of Patanjali is natural Ayurveda based product available at low cost.

Another example is Maruti Suzuki. Maruti enjoys the benefit of the largest service network. You will find service network of Maruti almost everywhere. That’s why people prefer buying Maruti cars in India. And hence, Maruti Suzuki is able to increase its sales consistently and give good returns to its shareholders.

Also Read – Bluechip Stock – Should You Invest in Bluechip Stocks?

Debt Free Status

Next factor for consideration is debt free status. A low debt company means extra competitive edge, increase in profit margin and high creditworthiness.

Debt Free companies are companies with zero debt. Zero debt indicates that company’s financial health is very good. They are capable to withstand any type of economic conditions. The best example of a debt-free company in India is Hero Motocorp. Hero Motocorp generates enough revenue to finance all internal operations and investment requirements. Hero Motocorp has given very good returns to investors.

Management of the company

The management of the company should be honest, dynamic and capable of handling any adverse situation. Management should be visionary and should be capable to allocate earning into new moneymaking venture so that it provides a high return on invested capital.

Popularity of the Stock

It is not important that stock, where you invest, should be popular stock. Let’s understand this from Bollywood. Given a choice in Bollywood people prefer Shahrukh Khan, Salman Khan and Ajay Devgan for hit movies. It does not mean less popular star like Irfan Khan, Varun Dhawan is not capable of delivering hit movies.

One should try to find out lesser known high-quality stock for the investment.

Past performance history

Last but not least, you should also look at past performance history of the stock. Checkout at least past three years performance of the stock before making an investment. Past performance is not directly related to future return, however, it helps you to form a quick opinion about the stock.

In short, ask following questions to identify best stocks for the investment.

What are Fundamentals of stock? A stock is fundamentally strong or not ?
Which products and services company is offering? Business Model of the company is sustainable?
What are the future prospects of the company?
Do company enjoys a competitive advantage over other?
What is debt level of the company?
How has stock performed in past?

Must Read – Top Debt Free Companies in India for Investment

Best Stocks to buy in India for long-term Investment

I hope you must have got a fair idea that How difficult it is to identify the best stock for the investment? Here are Best Stocks to buy in India for the long term.

Maruti Suzuki

Analyzing fundamentals of Maruti Suzuki –

Net Profit – Net Profit of Maruti Suzuki is increasing YOY.
Revenue – Revenue is touching new height every year.
Earning Per Share (EPS) – EPS of Stock is very high and increasing every year.
Price to Earnings Ratio (P/E) – PE ratio is high compared to M&M and other peer companies.
Price to Book Ratio (P/B) – Price to Book ratio of Maruti is low.
Debt to Equity Ratio – Maruti is nearly debt-free company with a ratio of 0.01.
Return on Equity (ROE) – ROE is 17.44%.
Price to Sales Ratio (P/S) – Price to Sales ratio of Maruti is low.
Dividend Yield – Dividend pay-out of Maruti is increasing every year.

fundamentals maruti stock

From above data, we can say that fundamental of Maruti Suzuki Stock is very good. A business model of the company is sustainable. Future prospect of the company is very good. A company is debt free and giving a very good performance. New products in the pipeline and unique selling point of largest service network makes Maruti good choice for Investment.

Shree Cements

Shree Cements is next best stock for investment for long term. Analysing fundamentals of Shree Cements –

Net Profit – Net Profit of Shree Cement is increasing YOY.
Revenue – Revenue of Shree Cements is growing.
Earning Per Share (EPS) – EPS of Shree Cement is high.
Price to Book Ratio (P/B) – Price to Book ratio is low.
Debt to Equity Ratio – Shree Cement is nearly debt-free company with a ratio of 0.17.
Return on Equity (ROE) – ROE is 18.01%
Price to Sales Ratio (P/S) – Price to Sales ratio is low.
Dividend Yield – Dividend yield of the stock is high.

Shree Cement is a fundamentally strong company with sustainable business model. Shree cement enjoys the benefit of low production cost. It is debt free company with good future potential.

Hero MotoCorp

Another Best stocks for long-term investment in Hero MotoCorp. Analysing fundamentals of Hero MotoCorp.

Net Profit – Every year Hero MotoCorp is giving better result in terms of Net Profit.
Revenue – Revenue of Hero MotoCorp is maintained.
Earning Per Share (EPS) – EPS of Hero MotoCorp is growing every year.
Price to Earning Ratio (P/E) – PE ratio of Hero MotoCorp is low compared to peers.
Price to Book Ratio (P/B) – Price to Book ratio is low.
Debt to Equity Ratio – Hero MotoCorp is completely debt free.
Return on Equity (ROE) – ROE is 34.66%.
Price to Sales Ratio (P/S) – Price to Sales ratio is low.
Dividend Yield – Dividend pay-out of stock is good.

Hero MotoCorp enjoys a very good market share in two and three-wheeler market segment. Hero MotoCorp enjoys Technological Advantage over other companies. Hero MotoCorp is one of the Best stock for Investment.

Conclusion –

If you are DIY (Do Your Self) investor you should invest in the stock based on fundamentals and research. Remember points given here before selecting any new stock for investment.

Also, let me know if method given here for the selection of Best stocks for investment is useful or not? Happy Investing!

Best Health Insurance Plans in India 2025

Health Insurance

Shitanshu Kapadia

-

March 22, 2018

3

Health insurance is an essential part of our life. It is very difficult to bear the exorbitant costs of medical treatments without a health insurance policy. Health insurance is the only option that saves you from financial losses. It also helps you in saving tax.

A good part is health insurance policies are available at a very low premium. But the bad part is there are hundreds of companies selling health insurance policies and all policies look alike.

So what can be done for the selection of the best health insurance policy? Well, in this post, I will share information about what attributes you should look for, in a perfect health insurance plan. I will also share Best Health Insurance Plans for 2025.

Health Insurance Plans India

What is Health insurance?

Health insurance is a medical policy that covers you and your family at the time of medical exigency by paying a treatment cost. An insured has to pay fix premium amount yearly or monthly as agreed while buying a health insurance policy. The premium paid for buying a health policy can be claimed as a tax exemption under section 80 D.

Types of Health Insurance

Individual Plan – An Individual plan provides coverage to a single person against basic medical care costs. These plans offer a fixed sum insured, which can be used for hospitalization, surgeries, and other medical treatments. This type of plan is suitable for an unmarried individual.

Family Floater Policy – The family floater policy provides health coverage to all family members. The premium amount of the family floater policy is low compared to an individual health plan. These plans are ideal for families as they provide comprehensive coverage for all members without the need for multiple policies.

Senior Citizen Health Insurace Plan – Senior citizen health insurance plans are specifically designed for individuals above the age of 60. These plans offer higher coverage for age-related health issues and may include features like cashless hospitalization, higher sum insured, and coverage for pre-existing conditions. They ensure that elderly individuals receive adequate medical care without financial strain.

Top Up & Super Top Up Plan – Top Up plan means an additional plan to increase your existing coverage amount. If you have already purchased a health plan or you are covered under mediclaim by an employer you can purchase a Top UP Plan. This plan is useful when you exhaust your sum insured limit. Buying a Top Up Plan is like buying extra safety. Super Top Up Plan is similar to Top Up plan. The only difference is in Top Up you have a limit of a single claim in a year in Super Top Up, no such limit is applicable.

Critical Illness Cover – Critical illness cover is a policy that covers only specified critical illnesses. This plan can be purchased as an extra on the top of health policy. This type of insurance helps cover the high costs associated with treating severe illnesses and can be used for medical expenses, lifestyle changes, or any other financial needs during recovery.

Group Health Insurance – Group health insurance plans are offered by employers to their employees as part of their benefits package. These plans provide coverage for a group of individuals under a single policy and are generally more affordable than individual plans. They ensure that employees have access to essential healthcare services, promoting a healthier workforce.

Also Read – Buying Health Insurance Policy in India – Information Guide

Important Points for the Selection of the Best Health Insurance Plan

Protection against a wide range of medical problems

The first point for the selection of the best health insurance is plan should provide coverage for all types of diseases and illnesses. You should not cut costs by limiting the number of diseases or illnesses. Select a plan with a wider range of coverage against medical problems.

Pre and Post Hospitalization Cover

Pre and post-hospitalization cover includes medical expenses incurred before and after hospitalization, typically within a specified period. This feature ensures comprehensive coverage for all related medical expenses, not just those incurred during hospitalization.

Life Long Coverage

A second important point to consider while selecting the best health insurance is Lifelong coverage. There is no point in purchasing a policy that does not provide coverage at an old age. The ideal policy is one that provides a lifetime renewal facility.

Minimum Exclusion

Another important point for the selection of best health insurance is minimum exclusion. If the exclusion list of policy is long you should avoid buying. A policy should cover pre-existing illnesses.

No Claim Bonus

No claim bonus (NCB) is a benefit offered by insurance providers for each claim-free year. It usually results in an increase in the sum insured without a corresponding rise in premium. NCB rewards policyholders for staying healthy and not making claims.

Cashless Claims

A Cashless Claims facility is extremely important when selecting a health policy. When you or your family member is suffering, your worry is to arrange the best treatment and not arrange money. A cashless claim facility is one which settles all the expenses with the hospital directly.

Also Read – How to Claim Benefit for Multiple Health Insurance

Maximum Hospital Coverage

The hospital network is the next point of consideration. A health policy should cover maximum hospitals. They should have tie-ups with almost every hospital so that cashless facilities can be availed easily.

Less Paper Work & Good Customer Care

The next point to consider is policy should demand less paperwork while applying for the claim. In addition to that company should have good customer care and email support.

Economical in terms of premium

You should also consider the insurance premium amount while selecting the best health insurance plan. It is recommended to compare various policies online before making any purchase decision.

Lifetime Renewability

Lifetime renewability ensures that you can renew your health insurance policy without any upper age limit. This feature is crucial for ensuring continuous coverage, especially in old age when medical needs are higher.

Claim Settlement Time

You should also consider the time taken by a health insurance policy for the settlement of mediclaim. In addition to that, you should also consider the claim settlement ratio.

Recommended – Health Insurance Plans for NRI in India

Best Health Insurance Plan

HDFC ERGO Optima Secure

Key Features

2x Coverage from Day 1 with a 400% increase in cover after 2 renewals.
No Room Rent Limit
₹2.5 lakh No Claim Bonus
Restoration of cover once a year
400+ cashless hospitals
98.5% of claims were paid in 3 months

ICICI Elevate

Key Features

Claim Unlimited Amount once in a policy lifetime with rider
Single Private AC Room
₹1.5 lakh No Claim Bonus
Unlimited Restoration of cover
286+ cashless hospitals
100% of claims paid within 3 months

Reliance Health Gain

Key Features

Additional 30% discount on premium
Option to fully customize plan
₹1.66 lakh No Claim Bonus
Restoration of cover once a year
323 cashless hospitals
98.7% of claims were paid within 3 months

Niva Aspire Gold

Key Features

Get maternity coverage for both mother & newborn baby
No Room Rent Limit
₹5 lakh No Claim Bonus
Unlimited Restoration of Cover, Forever
268 cashless hospitals
100% of claims paid within 3 months

Care Supreme Direct

Key Features

Guaranteed 7x increase in cover amount over 5 years with Cumulative Bonus Super Rider
No Room Rent Limit
₹10.5 lakh Renewal Bonus
Unlimited Restoration of cover
231 cashless hospitals
100% of claims paid within 3 months

Conclusion –

In conclusion, it can be said by commenting that finding the best health insurance plan is not child’s play. You need to consider multiple factors while selecting a health insurance.

It may be possible that the plan purchased by you is not listed in the Best Health Insurance Policy list given above. It does not mean that your selection is wrong. Insurance needs differ for every individual. One insurance plan is sufficient for someone, other may need top-up or super top-up plan. The plan suitable for a single individual may not be good for others.

It is recommended to consider all points described above for the selection of a health insurance policy.

Make sure to select the best health insurance policy based on your requirement and enjoy tension free life.

How to set ePayEezz Mandate Online at MF Utility?

Mutual Funds

Shitanshu Kapadia

-

March 20, 2018

0

How to set ePayEezz Mandate Online at MF Utility?

PayEezz Mandate facility for mutual fund SIP is completely online now. At MF Utility you can start your SIPs with a click of a button without any paperwork. You just need Aadhaar card linked to your mobile number and bank account. Here is a process to set PayEezz Mandate Online at MF Utility.

If you are investing in mutual funds via MF Utility, you might have faced difficulties in registering the PayEezz debit mandate for your SIPs. Lot of paperwork, issue of form filling, signature mismatch, and unavoidable delay are few negative of the offline process. This process is entirely converted to online process. You can set your ePayEezz mandate using Aadhaar Authentication within few minutes.

What is PayEezz?

PayEezz is one time an ECS mandate required by MF Utility platform for SIP. It is to authorize MFU for debiting bank account up to mention amount in the mandate form. In short, PayEezz is one type of payment mode. The other payment modes are net banking, NEFT and RTGS.

PayEezz is an old method. A newly launched method is ePayeezz.

ePayEezz mandate for starting your SIPs online

The basic requirements of ePayEezz mandate are given below.

Only resident individual with Common account number (CAN) registered with MF Utility can use this facility. NRI cannot use this facility.
Your Aadhaar number should be linked to your mobile and your bank account should be linked with Aadhaar for using this facility.
The maximum transaction limit for ePayeezz is 1 Lakh.

Also Read – MFUtility Mutual Fund Investment Platform

How do I setup ePayEezz mandate for SIPs?

Follow the steps given below to setup ePayEezz mandate for SIPs on MF Utility Platform.

Go to mfuonline.com and log in using username and password.
Select ePayEezz Registration under Account tab. Refer to the image given below.

You can see all your registered bank accounts on the screen. You need to click on the Edit icon to start ePayEezz registration. If your bank account details are not visible you need to register it by filling physical form.
You will be able to see pre-filled form. You need to enter maximum amount and start date, end date for this mandate form. Accept terms and condition and submit the form.
You will be taken to the BillDesk page where you need to enter your Aadhaar Number. It is required for e-singing.
Once you proceed to sign using Aadhaar, OTP will be generated on your Aadhaar registered mobile phone. Enter OTP and click on the submit button.
You will get confirmation on the screen. It is confirmation for successful registration of ePayEezz.

Bank has to still confirm this registration. Bank takes approximate two days for the confirmation.

In order to trace your request, you need click on ePayEezz Tracker under Status Tab. You will be taken to another page where it will show status.

20 Ways to Earn Money Online from Home without Investment

Money & Wealth

Shitanshu Kapadia

-

March 18, 2018

0

It took me awhile to earn money online. I tried multiple ways to make money online. I was running from pillar to post in order to find best legitimate ways to earn money online.

It was a struggle.

Are you in the same boat like me? Do you want to earn money online? Did you ever tried to make money online but did not got success? Don’t worry. I have something interesting for you. In this post, I will share 20 Ways to Earn Money Online from Home without Investment.

As an experiential authority, I can say that you can also earn thousands of dollar online by just doing some legitimate activities online. You just need an Internet connection, Laptop and few legitimate websites that can offer you avenues of earning money online.

microjobs

20 Ways to Earn Money Online

Affiliate Marketing

If you are hardworking and serious about making big money online, affiliate marketing is for you. In affiliate marketing, you are helping customers to select a right product. Follow the steps given below to earn money online from Affiliate Marketing.

Sign up as a partner on the merchant sites like Flipkart, Amazon, eBay, Clickbank, CJ etc.
Get affiliate link for various products.
Start promoting products via affiliate links on your website or via E-mail marketing.
You will be paid 4% to 20% commission if someone purchases product by using link shared by you.

You can earn Rs.10000 to 1 Lakh by Affiliate Marketing.

Google Adsense

Google Adsense is second proven way to earn money online. It is one of my favorite ways to earn money online. However, it is not easy to make money from this way. You need to invest a lot of time with a dedication to generate money from this idea.Follow the steps given below to earn money online from Google Adsense.

Make a website or blog with high-quality content.
Generate organic traffic on your website.
Once your website gets popular apply for Google Adsense account.
If you get an approval from Adsense, you can generate an advertisement code.
You need to place this code on your website to generate money.

You can generate $100 to $10000 from Google Adsense.

Earn from PTC Sites

If you are running out of time and you want to generate small income say $100 per month you can start with PTC sites. PTC site means Pay to click site. These sites will pay you money for clicking and viewing an advertisement.

The pay-out for clicking advertisement is very low hence this idea is on the third position. There are many legitimate websites where you can register and start earning money without any investment. My favorite PTC site is Ysense.

Earn from GPT Sites

GPT Sites is another interesting way to earn money online. I have generated a lot of money using GPT websites. GPT means Get Paid To. These type of sites provides various tasks such as survey completion, playing games, clicking ads, completing promotion offers etc.

My favourite GPT sites are Swagbucks, InboxDollars and CashCrate.

Captcha Solver Websites

If you have extra time you can earn more money by solving Captcha on Captcha Solver websites. You just need to solve a captcha and you will be paid money for solving each captcha. You need to be fast in solving a Captcha to generate good income.

I have used CaptchaTypers and MegaTypers websites for earning money by solving captcha.

Survey Sites

If you love to give an opinion about various products survey sites are for you. Survey Sites offers you a small survey which you can complete in 5 minutes to 30 minutes. Along with fixed questions you need to write your feedback and opinion in a survey. You will be paid $1 to $5 from a single survey.

I have used Swagbucks to earn money from the survey.

Freelancer

Freelancer is a popular way to make money after PTC, GPT and affiliate marketing. As a freelancer, you need to complete, a fixed work assigned to you online. You can earn $500 to $1000 by becoming a freelancer. Freelancer task includes web designing, programming, video making, graphic design, data entry etc.

I have used Fiverr and Upworks and earned lot of money as a freelancer.

Content Writer

The Content writer is next idea of earning money online. If you are good at writing you can start online writing business and earn a lot of money. This idea can help you to earn $500 per month. Elance, Freelancer, and Copyblogger are websites that can offer you online writing jobs. You can even tie up with bloggers who are looking for web content writing services.

Blogging

Blogging is a popular way to earn money online. Blogging requires a lot of patience, knowledge and time. In blogging, you need to create a blog, publish articles on relevant topics and increase organic traffic. You will be paid for the advertisement placed on your blog. You can earn more than $1000 per month via this idea.

Youtube Channel

Youtube also offers an opportunity to earn money online. The process is very simple.

Select a topic and create a Youtube channel.
Generate videos by using good quality camera or software. I use Videoscribe for making videos.
Upload Videos on a channel.
Apply for youtube channel partner program to make money from videos.

Web Design

Web Design is a most popular way to make money online. You need to have the technical knowledge and programming skill to become a web designer. If you don’t have an idea then you can take the training & then start this because this field has got a great potential. You can promote your business offline or even online by creating your own website.

SEO

SEO stands for search engine optimization. It is a technical term used for improving search ranking for a website. It is a booming field. If you have the knowledge you can become SEO expert.

As an SEO expert, you can earn $1000 to $2500 per month based on your expertise. You need to bid project online or contact companies looking for SEO services for their website.

Online E-commerce Site

Online E-Commerce site is another way to earn money online. However, it requires lot of investment to start your own e-commerce portal. I would recommend starting e-commerce store on a smaller scale with specific items or within a city. Once you are successful you can expand the scope by making an investment.

Domain Trader

Domain Trading is the next way of earning money online. However, it demands some investment for buying domains. There are many sites, such as Gandi, that enable straightforward domain name registration. However, you have to be an expert before starting a domain trading business. You will need to develop skills to identify domain names with future demand. You have to purchase a domain name at a low price and sell it at a higher price. You can use Godaddy Auction tool for this.

Domain Hosting

Domain and hosting service is an online business idea for people with great technical knowledge. This business can be done in two way. You can either setup your own server or start domain and hosting services or you take service from existing service provider as a business partner. It is proven way to earn money online. However, it will take time to generate money from this idea.

Stock Market Trading

Stock Market Trading is a most promising way to make money online. However, you need to develop a skill for starting stock trading. You can refer to my earlier post which gives information about starting a career as a stock market trader.

Earn Money from Smartphone

You can earn money from your smartphone. There are various apps available online that can help you to make money on the move. You need to complete few tasks and survey to make money from these apps. I have used InboxDollars to earn money online.

Sell Photos Online

Good photos of nature, place, people, home, things are always in demand. These photos are largely used for making advertisements. If you are good at taking photographs you can sell them online and earn money. Follow the steps given below to sell photos online.

Register on the websites like Photobucket, iStockPhoto or Shutterstock.
Upload your unique photographs with a price tag.
When someone purchases your photo, you will get paid.

Online Tutorial

If you are good at teaching you can start an online tutorial business. In this business, you need to create content for the specific course online and create a subscription model for usage. It could be module wise cost or even usage wise.

Sell Old Stuff Online

The last way to earn money online is by selling old stuff. You might have a lot of unused stuff at your home. You can sell this online and earn good money.

You just need to identify old unused items and upload high-quality photographs on websites like OLX or Quikr. However, this way is not sustainable. As it is difficult to find out old items every month.

I hope above 20 Ways to Earn Money Online will help you in generating online Income.