General Info

A company reports ₹400 crore of profit. Impressive or not? It depends entirely on how many assets it needed to produce that profit. A company generating ₹400 crore from ₹2,000 crore of assets is running a very different business from one needing ₹40,000 crore to produce the same figure. What is Return on Assets? Return…

The most common way a good investment plan fails is not a market crash. It is a hospital bill, a job loss, or a car repair arriving at the wrong moment — forcing you to sell equity investments at whatever price the market happens to be offering that week. An emergency fund exists to make…

When the Nifty falls 5%, some stocks fall 2% and others fall 9%. Beta is the number that describes that relationship — how much a particular stock tends to move relative to the market as a whole. What is Beta? Beta measures a stock’s sensitivity to movements in the overall market. It compares how much…

A relative tells you their investment will double in six years. Is that impressive? Divide 72 by 6 and you get 12 — they are claiming roughly 12% a year. Now you can judge it. That single division is the Rule of 72, and it turns vague investment claims into numbers you can evaluate in…

Two funds both return 12% a year over a decade. One does it in a fairly steady line. The other alternates between +45% and −25%. The destination is identical; the experience is completely different. Volatility is the word for that difference — and it explains why investors in the second fund often earn far less…