What are the Best Media Stocks to Invest?

Actual Question:

Which is best the media stock for long-term wealth creation?

Answer:

Dear Friend!

Even though I look with an open and positive mind, I am unable to identify a single investible listed media company. Either the company performance is prima facie not suitable or where the performance on the face looks all right, the valuations are unaffordable.

As a consequence, I do not find none of the listed media companies are worth investigating in depth. So I have not done an in-depth investigation of the listed, media companies discussed here.

Those companies that are not in loss have the PE Ratio far above the permitted below 15 (Zee Media, UFO Moviez and Balaji Teelefilms).

To conclude immediately no listed media company is attractive for investment. Zee Media, UFO Moviez and Balaji Teelefilms look like potentially worth investigating further and in case they have been performing well consistently well, then perhaps they could be considered for investment, when the markets correct.

Thank you,

With Best Regards

Anand

How many companies are listed on BSE and NSE?

Actual Question:

How many companies are listed on BSE and NSE? I thought they were 30 and 50 respectively, but I just discovered there are many more.

Answer:

Dear Friend!

As on date more than 5500 companies are listed on the BSE, as per the information available on the website of the BSE.

NSE being a relatively new exchange, about 2000 companies are said to be listed.

Perhaps you had arrived at the numbers of 30 and 50 respectively based on the composition of the two popular indices, S&P BSE Sensex (comprising 30 scrips enjoying the top 30 market capitalisation) and NIFTY which comprises of the top 50 companies.

Kindly note that for a stock market to function effectively it is required that a sufficiently large number of companies are listed on the exchange. The numbers of 30 and fifty will not suffice. Only a fairly large number of listed companies can meet the wide range investing tastes and styles of market players like domestic institutional investors (DIIs), foreign institutional investors (FIIs), high net worth individuals (HNIs), retail investors and so on.

For your kind information, though popular, Sensex and NIFTY are not the only two indices. Following is the list of various indices of the Bombay Stock Exchange:

Related Articles:

• Index Definition
• Which Stocks Constitute the BSE Sensex?
• Index Funds of Top 10 Mutual Funds

To conclude a large number of companies are listed on India’s two popular exchanges, BSE and NSE, offering a wide choice for various types and categories of investors.

Thank you,

With Best Regards

Anand

How to Buy Multiple Mutual Funds from a Single Online Platform?

Actual Question:

What is the best online platform to buy mutual funds? Is it possible to buy multiple mutual funds from a single platform? If yes, how to buy form an online platform?

Answer:

Dear Friend!

Best Online Platform:

It is not possible for me recommend the best online platform for buying mutual funds. In order to do that one should have the personal experience of having used many platforms, which is not practicable. 

In my opinion all major online platforms sponsored by reputed institutions should provide good services. Following platforms I have used and can say are good:

• Kotak Securities - an offshoot of Kotak Mahindra Bank: https://www.kotaksecurities.com/
• India Infoline: https://ttweb.indiainfoline.com/trade/Login.aspx 

Is it possible to buy multiple mutual funds from a single online platform?

The answer is a definite YES.

Please see the following screen picture from Kotak Securities:

How to Buy Mutual Funds Online:

Please note that all the steps described here are as to be followed with Kotak Securities trading account. Other platforms may have different procedures/ steps and screens.

Before you can buy mutual funds online, you should have completed the following prior formalities:

1. Opened an online trading account with a stock broker.
2. Opened an account that keeps the mutual funds in a dematerialised form in a special account which is popularly known as demat account.
3. Your Power of Attorney (POA) in favour of the broker has to be registered with the Registrar and Transfer Agent of all the mutual funds. This your broker will take care of with your consent but the process may take three to four working days. When you are buying for the first time and if you are not so registered, you may see a screen as follows:

Now you are ready for buying mutual funds online. lets start.

Step 1/ Screen 1: Login

Log in to your trading account using the login ID, password and the transactional one-time-password (OTP). Please note that the OTP requirement may not be involved in a few platforms or there may be any other method of verification.

Step 2/ Screen 2: Select "Trade Now"

On the top lefthand side corner choose the option "Trade Now" and you will enter the following step/ screen.

Step 3/ Screen 3: Select "Place Order"

When you click on the option "Place Order" the following menu screen displaying various options like 'Equity', 'Derivatives', 'Mutual Funds' and so on will open.

Step 4/ Screen 4: Select "Purchase"

Please click on the button "Purchase" listed under the main head, 'Mutual Fund'.

Now the following screen listing various mutual fund categories of various funds will open.

Step 4/ Screen 4: Select "Action"

Please note that a menu table with five mutual fund types or categories, with various schemes sponsored by multiple funds are listed under each category. You have a really wide variety of schemes to choose from.

Under each  fund scheme you have following two action choices are in front of you:

1. Buy: This is meant for an one time buying of mutual fund
2. SIP: Option to subscribe to a systematic investment plan (SIP) - once you choose this you are committing to a regular purchase, usually monthly.

What type of mutual fund to choose?

As I have repeated many times before for real long-term wealth creation you should only choose a well diversified, low-cost, equity, index fund.

Suggested Further Reading:

• Types of Mutual Funds
• How to Choose the Right Mutual Fund to Invest?
• How Frequent Changes to Mutual Fund Portfolio Affect Investor Interest?

In conclusion you can indeed invest in multiple mutual fund schemes from a single online platform and we hope you have learnt how to buy from this article.

Thank you,

With Best Regards,

Anand

What is Share and Equity Share?

Actual Question:

What is the difference between “Equity” and “share” in a share market?

Answer:

Dear Friend!

A very nice question. Thank you.

A share is a unit of the share capital of a company. Practically a company can have two types of share capital, namely:

• Equity Share Capital
• Preference Share Capital

 Preference share have a priority on payment of dividends and repayment of principal over equity share capital. Even though this looks like an attractive feature, the dividends are pre-specified and limited. Again at the time of liquidation they are entitled to get only the face value of the share and are not entitled to participate in the surplus available after discharging all obligations.

Equity shares on the other hand are more risky and therefore are attached with potentially greater rewards.

If a company has both equity and preference share capital, then there will be two kinds of shares - equity and preference.

So, a share is more a generic term or a mother term, equity and preference shares being its children.

In the world of stocks the word equity is used to represent equity shares.

What are generally traded on the stock exchanges are mostly equity shares only.

Thank you,

With Best Regards

Anand