Investment Summary: Fill & Download for Free

RNAVAL and SUZLON shares:Why would anyone think of buying these stocks at this time?Year 2018 has seen NIFTY making new highs on multiple occasions. Lot of TV talk time has gone celebrating these high moments.But there was never any cheer for these stocks.Let us have a look at the prices.RNAVAL :From Rs. 72.65 in January, it made a low of Rs. 11.40 in July. Now it trades at Rs. 15.00.It may go either way depending upon the market trend.But a stock which loses value when overall trend is positive is not investment grade stock. It lost 85% value at one stage in little more than 6 months.As for making a gain of 15–25%, it is feasible.From July to September, it has already made 30% gain.It is a highly volatile stock and sometime goes up or down by 10% in a single trading session.It is a stock for speculation not for investment.SUZLON:What do we see here?Same story.Fall of about 60% in a year when the markets are moving up.We do not consider such stocks worth investing.Summary :Both the companies have huge debts and there business model has not enthused the markets for more than a year now. These stocks are neglected and will stay neglected. Yes, there can be little up moves from time to time which should be used to exit if one is already trapped in these stocks.There are opportunities elsewhere. Why waste time and money here?Thanks for reading.

The investment summary is also known as the "one pager" and lists the team, outlines the story of the business so far, the relevant details of the current investment opportunity and any previous investment rounds, an overview of the competitors and market you're operating in, and an overview of how you intend to apply the investment capital to grow the business. Here's a one-pager (in this case, two sides of one sheet) as an example.Here's a great article from Inc. magazine that explains each component and what you should keep in mind when drafting an investor summary.One Page That Matters

“Real Estate is as good as bad”What do I mean by that?Real Estate is a good way to diversify your portfolio but not to heavily rely on just one instrument. It is always suggested that one should keep following allocation to your portfolio :Gold (5%)Real-Estate (20%)Debt Instrument (30%)Equity (45%)Suppose there’s a couple Arjun & Anjali . They are married and are working in the same MNC luckily and after discussing they took a decision to start saving for their son (4 years) but are confused as to where.Arjun is earning Rs 1,00,000 & Anjali is earning 60,000 after taxes. And their monthly expenses are 60,000 which leaves then with Rs 1,00,000 in investible surplus every month.They have two options, either dump all his savings which they have saved in the last 10 years by giving a down-payment to his new house or he can start a SIP on monthly basis till his son is ready for college. To create a real life experiment, they decided to do both :He invested 15 Lakhs as a down-payment to a 60 Lakhs 2 BHK apartment which is ready for possession. The remaining 45 Lakhs was taken on loan at 7% floating interest rate from HDFC Bank for the next 15 years on his name. EMI is Rs 40,447 for the next 15 years.His wife did some research and invested Rs 40,000 in equity, multi-cap and small cap funds for the next 15 years with proper diversification.~Fast Forward 5 years(2025)Real Estate Investment Summary :First thing to notice, he is paying more than 2.5x of the rent as the EMI and in 2023 he was not able to get any tenants due to which he was not able to generate any rent but he has to pay monthly maintenance charges (Rs 36,000) and property tax (Rs 8,000).Secondly, all the rent which he received were simply lying around in the bank or were used to buy one thing or another.Rent Received (2021,22,24,25) : + Rs 8,70,000Property Taxes (21,22,23,24,25) : - Rs 41,000Maintenance out of pocket (2023) : - Rs 36,000Total Income : + Rs 7,93,000Flat Equity Value : + Rs 67,00,000Mutual Fund Investment Summary :This is very simple and easy to track investment where you just need to login to you Demat-account and check the Value as on date, same investment of Rs 40,000 is converted into 26,70,000 rupees. She did not search for tenants or fill property taxes but still managed to earn more than Real Estate.Total Income : + Rs 26,70,000~Fast Forward another 10 years(2035)Real Estate Investment :He received an average rent of 22,000 per month from 2026–2035 where his apartment was vacant for two years but he paid the monthly maintenance bill of the society.Rent Received (2026–35) : + Rs 26,40,000Property Taxes (2026–35) : - Rs 41,000Maintenance out of pocket (2028,33) : - Rs 1,20,000Total Income : + Rs 24,79,000Flat Equity Value : + Rs 1,00,00,000Mutual Fund Investment Summary :The same amount of Rs 40,000 is converted to 1.61 Crores which can easily fund her child’s education need along with his marriage and contribute almost 1 Crore to their retirement corpus.The most important thing or element in this was time which helped them in compounding their wealthTotal Income : + Rs 1,50,00,000 (after-taxes)Now , Rajeev is 18 years old. You remember their son right? He has applied to BITS Pilani for CSE branch and got selcted in management quota but the asking price is Rs 6 Lakh/ year for next 4 years excluding his monthly expenses.Arjun posted an advertisement right away on 98acres.com with Rs 1,00,00,000 (1 Cr) as the asking price but there were next to no buyers for the asking price for a 15 year old building and he was put on wait.Anjali simply logged in her demat-account and redeemed units worth 9 lakhs which will cover Rajeev’s expenses along with college fees for an year & later next year she will do the same by redeeming more units. She will get the benefit of compounding every year.What did we understand from this story?Real Estate is a good product when you are buying for self use only.Real Estate is a good instrument too diversify your investing instrument but not to rely on it. If investing then put money in REIT’s such as Mindspace or Embassy which are listed on Stock Exchange and can be sold in case of need.Real Estate involves active management which is very hard for people who are working in a 9–5 job.In the US, house flipping is a famous business where they buy a distressed house in a well-to-do society & refurnish it. They put 4–5 months of effort and later sell it to earn profit which can be as big as $100k.What went wrong in the above case?Arjun should have started a SIP with the monthly rental income in a low-cost indexed fund which would have simply quadrupled the returns.Arjun lost the opportunity cost on initial 15 Lakhs which he invested as a down-payment in his house.Arjun and Anjali should have had a joint loan which will help them both to claim tax-benefit.Arjun can collect the rent-money in his account every year and the pre-pay the home loan which will help him to close the loan quickly and hence pay low interest amount.Bottomline : Rajeev is happy as now he has a house as well as some seed money if he wants to drop out :PThis post took me an hour to write and your one up-vote will definitely make it count.Drop a comment as it will keep me motivated to write further with real case examples. Do feel free to contact me in comments or my email in profile . 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