Yet, life moves on and we have to put our money to work for us. Every investor develops his or her own style of investing and this is what makes investing interesting and a continuous learning experience. If at all there was a simple and straight way to investing, we all would have followed that path to identify multi-baggers. However, one thing for sure that all investors would check for, irrespective of the investing style they adopt, is ‘return on equity’ ratio (ROE) or ‘return on net worth’ (RONW).
Both the ratios indicate returns generated over the owner’s capital employed or shareholder’s fund. Shareholder’s fund is defined as equity capital invested plus all reserve and surplus of the company. RONW measures profitability earned on the shareholder’s funds and is used as a benchmark for comparing one company with another and the company’s performance over the years. Change in RONW can be caused by a combination of any of the factors like change in the profit margins, capital turnover, financial cost ratio, financial structure ratio and lastly due to change in tax structure.
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The Art Of Selecting A Financial Product
Most people invest with little or no in-depth analysis or study. What are the factors that must trigger your investment? The article provides guidelines from an investment product perspective and can be used for buying any financial product, including your insurance. Keeping all these points in mind while selecting your financial product will help you to improve your chances of generating wealth
The Facts & The Fine Print
Most of us buy life insurance driven by the need of the hour, especially when it is time to get the benefit of tax exemption or in cases like the present one when the world has been gripped in the clutches of the pandemic. This is not an ideal scenario. You must understand the nitty-gritty of an insurance policy before investing in one. The article shows the way
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Markets on a Steady Ascent
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Rainwater Harvesting: Need Of The Hour
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Cotton Weaves Its Way To The Top
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Are Quant Funds Worth The While?
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Small-Cap Small In Size, Big In Gains
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Did Anyone Hear a Pop?
Investors are worried that stocks are in a bubble— and that it’s going to burst.
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Getting More from Less
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Are We Going Digital Forever?
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Death and Taxes
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