Deepak Jain

How to analyze Banking and NBFC stocks? Banking and non-banking financial institute stocks analysis needs an understanding of some special parameters which are specific to this industry.  Let's have a look - (1) Net interest margin This ratio is only applicable to banks and Non-Banking Finance Companies. It is a measure of the difference between the interest income generated by banks and NBFC’s and the amount of interest paid out to their lenders relative to the amount of their assets. Net interest Margin= (Interest Income Earned-Interest Income Paid)/Total Assets It is a measure of how successful a firm is at investing its funds in comparison to the expenses on its investments. A negative value signifies that the firm did not make an optimal decision, because interest expenses were greater than the amount of returns generated by investments. If the demand for savings increases relative to the demand for loans, then the net interest margin wil...

Things to understand before investing in Mutual Funds How does Mutual Fund work? What are the types of Mutual Fund? There are multiple types of mutual funds but for simplicity, there are 3 types of funds - Equity MF - Higher risk - Higher returns Large Cap -   less risk and less returns Mid Cap -  medium risk and better returns than large-cap funds Small-Cap -  high risk and high returns Sector Fund Diversified Equity Fund Dividend Yield Schemes ELSS -  3yr locking, Tax saving in Section 80C Thematic Fund - Like Rural development, eCommerce, Housing, etc Debt MF - Moderate or less risk - Less returns  Gilt Funds  - invests in government securities  Junk Bond Schemes - investment in risky bonds but high return. Fixed Maturity Plans   Liquid Funds -  like Bank FD but you can withdraw money anytime. Hybrid MF - Invest in Equity and Bonds both Monthly income plan (MIP)  - 60-90% ...