Blogs

A DCF values a business by discounting its future free cash flows to today’s money. It’s the most rigorous valuation method and the most abused. Get the growth rate off by 2%, the discount rate wrong, or terminal value misread, and the output can swing 40%. In India,...

Diversification is sold as risk management. Past a point, it mostly manages the manager’s career risk. Research shows 15 to 20 stocks eliminate most unsystematic risk; every addition after that barely cuts volatility while diluting high-conviction ideas. In India,...

Earnings are an accounting construct. Cash flow is what hits the bank account. A business can report growing profits while burning cash through aggressive revenue recognition, capitalised expenses, or stretched receivables. Free cash flow tells you whether the...

A turnaround investment is a bet on a business that has performed poorly but where underlying asset quality or management change creates recovery conditions the market hasn't priced in yet. In India, where listed businesses are often cyclical and under-covered,...

Foreign investors can access Indian equities through two routes: as a SEBI-registered Foreign Portfolio Investor, or through a GIFT City IFSC-registered AIF. Direct onshore PMS isn't available to foreign nationals the FPI framework governs most foreign access to...

NRIs can invest in a SEBI-registered PMS in India, but the rules, tax treatment, and repatriation mechanics differ from resident investors. Investment flows through an NRE or NRO account, requires RBI Portfolio Investment Scheme permission, and sits in a dedicated...

Boutique PMS and large AMC differ in how decisions are made and what they optimise for. A boutique manager runs 12 to 20 concentrated positions, knows every business personally, and has personal capital in the same strategy. A large AMC manages thousands of crores,...

Business owners typically have 80 to 90% of their net worth tied up in one asset the business. That's a single concentrated bet that generates income but offers no liquidity, no diversification, and no protection if the sector turns. PMS gives business owners a...

PMS and mutual funds respond to volatility differently because they're structurally different products. A PMS holds stocks directly in the investor's name the manager can concentrate into high-conviction positions during a correction or raise cash when risk-reward...

Trust quotient in investing is the degree of confidence an investor can place in a fund manager based on verifiable evidence not marketing. A high trust quotient means holding through 30% paper losses without panic. A low one means a 10% dip triggers a redemption...