Varsity

Modifies
Notes
* Fuck Stock Market for a second .

let's see
why One Should Invest first .

Our Indian Parents talk about

saving but
only savings is useless .

In Short People invest to : -

① Beat Inflation ② create wealth

③ TO meet Financial Goals
Now as understood
we
why to invest the
next question is where to Invest ?
For choose
→
Investing One has to one

asset class that suits individual 's disk and

return temperament .

> An asset class is

basically a
category of
Investment /
different Places where one can
Invest

ⁿ°
.

stocks
Mutual Real Estate
Fun
% ↑
• REIT
Bonds
Diff Asset Class or →
Bills
commodities ← Planes to invest →
like Gold

(
↓ ↓
Ivel
metals ek crypto
Nft 's ↓ ETF 's
Oz
> Fixed Deposits
SGB
Alternative Investments like

Painting / antique items /cold cars etc .

 These different
asset classes have
different
risk / Return
Profiles One should choose asset .

classes ace to Risk appetite like it doesn't make

.
.

sense
for a
Guy in his 40 's to experiment with
crypto 's when ⑨her members are dependant on him

en :
very high Risk high Risk
-

crypto →
high Return
£9M'T →
nigh Return
low Risk

④_ → cow Return

Generally
for low Risk Medium Risk High Rish

FD Equity All Others

fixed income
Equity MF 's
Debt MF
RealEstate

Next Question that comes is

why is Equity
Or Stock Markets Better than Other Asset Classes
?
→ For
understanding
Different Assets : -
this lets see Returns
of

f-D -
h -
5%

fixed Income Instruments ( Bond 1 Bills etc )

-
8-11-1 .

Equity Potential much More )

C stock 1mF ) 15 20% (
generally
- -

Real Estate 10 12%

- -

Commodities 8- 9 %
crypto C uncertain ]
-

So we can clearly see

amongst all these
Equity is
the Best option Return n Risk wise .
A well studied
all
knowledgeable investor can
get good returns

from Equity .
 Now as we Have Established that Equities
are Better let's see how can we invest
in Equities .

① Stock Market ② Mutual Funds

① Stock Market Jt is a marketplace where

-

company
its shares ad in return it takes
offers
public People who invest in Markets
.
money from
directly
generally invest we trade on their own after doing
their own
analysis .

② Mutual fund -
Mf is
basically a Basket of stocks
that is fund Manager ad the
chosen by a

Manager manages the fund people generally invest .

in MF's who don't want to do

Own due to lack of time / lack of
Omthetd
analysis
knowledge .

Blokes Buy / sell

→ NSDY
-
order CDSL
Nˢᵗ /
BSE C Banks
facilitates transactions ]

se-BT-isE.gs
?C
who invest in Market
Participants)
Stock Markets

① Retail Investors Resident Indians like

you/ me
-

② NRI 's ③ HNI 's

③ DII ( Domestic Institutional Investor] -

Indian AMC 's

ehasicaby Indian MF 's .

④ FII 's -

Amc
's
, Hedge funds etc outside India
 Journey from Buying a stock then
selling
: -

first order
Terminal
we Place a
Big of a stock in
Trading
Of Our Broker

Then if the Rates our Buy Price Ciel Sell Price

of
Matches the transaction is done

After 1-+2 [Trading -12 days ] money gets deducted

from Booker wallet that we added from Bank
all shared in our Dermot Account
we
get our .

Then the goes to the sellers Broker wallet

money
.

NSDL / CDs c
The shares are stored in so
if
Blokes does some Ghana they ahe
safe in NSDC / Cpsc .

when
say
I Invest in markets
we we

Primarily Invest in
types of
2 markets .

① Primary Markets
Basically ②
Secondary markets
→

IPO Markets → Normal

Markets
Trading .

Now let's learn

Everything About IP 's
IPO → Public
when
Initial
Private
offering an IPO is

company Reddi Cally

a

listed ad takes
gets
money from Public .

But why does a

company gets listed ?

t.TO
 why Does a
company get 's listed ?
do
→ A company needs
funds to CA Pex or
to meet
fund requirements for company like Buying
land , equipments etc .
It can
get funds from 2
sources
① Debt / loan
② sell shares Cpchivatelg / Rakhi catty ]
First
when the
a startup
got funded by de 's /Pe 's / Bootstaped
company has matured quiet well its listed .

Reasons for listing : -

① For funds
② To Provide Exit
for the Investors.

IPO
Jargon s :
-

① DRHPC Red Prospectus ) It's a document made

Helsing
-

www.h details about the

by company givesetc
company 's
financials ,
vision
,
.

② Listing Day
③ under subscription

⑨ Over subscription
⑤ Price Band
⑥ Cutoff Price

⑦ Grey Market Premium ⑧ listing Gains

d- is Amt at which shares traded in
> an are
grey
2- is legal but regulated
market before listing not .
.

Price Band -
110 - 120

GMP -

140
that stock
This means the investor have confidence
is a ◦ ◦ d So often People Ivy Ipo after seeing GMP .
 Now let's see secondary Market : -

Price
In Tv when we hear stock
of some stock

fell 1 Rose some Percent they talk about stocks

traded in
secondary
Market .

Ex : The
denying / selling of stocks is done
Market
in
secondary
.

There are somewhere about 5000 -

5500 Stocks
listed ad its
difficult to teak Overall Performance
Of Markets this is where Market Indices comes
in .

Nifty 50 CNSE ) Sensei CBSE)

so stocks MCAP 30 Stocks MCAP

These the Indices adhere also

some
are
major 2 are

Industry specific Indices like Auto Nifty ,

Nifty metal etc .

In
ace
& Sensei
Nifty their MCAP
there are companies
weighted
of
to
likeReliance has 11 42%
. .

Nifty 50 .
So
if you invest into
Nifty
50 11 -42%

money goes to Reliance .

Previously we have seen market Participants

but what are there
Mentality : -

1
Gambler

1
Investor Trader
longterm shoot Terry

FA TA
 How to calculate Returns ?
The
→
only freaking thing that matters in the end is
Profit
but three are 3-4
ways to measure Returns
Let's see the
types .

① Absolute Returns ③ CAGR

② Annualized Returns ⑨ ✗ IRR