FAQs

Investing in shares, also known as equities, can provide the potential for the long-term growth of wealth and generate income in the form of dividends. Owning shares in a company gives you partial ownership of the company. It can also diversify a portfolio, which can help manage risk. Other commonly used investment options are:

Bank/Company Fixed Deposits:

• Returns are low; after deducting inflation and taxes, the actual returns are often abysmal and may even be negative.

Gold:

• Returns are only enough to cover inflation.

Mutual Funds:

• Approximately 70% of mutual funds are unable to outperform their benchmark indices.
• The expense ratio for actively managed mutual funds is typically high, around 2%.

Real Estate:

• Requires a significant investment.
• Lacks liquidity.
• Long-term returns are much lower compared to stock returns.

Commodities:

• Highly speculative.
• Requires a thorough understanding of both national and international markets.

IPOs are not as secure as they may seem to investors. Companies are not obligated to make as many disclosures before going public, and it is common for some policies, such as dividend payouts, to change after the IPO.

"It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)." - Warren Buffett.

Whenever we buy some article, we always compare the 'Price' we pay and the 'Value' we get, consciously or subconsciously.

When an investor buys a stock, he hardly compares the current price with its worth (Value). The worth of the stock is known by various names like Fair Value / Real Value / True Value, / Intrinsic Value. Without knowing the Fair Value, it is tough for an investor to have strong confidence and develop a conviction.

Mathematically, 'Fair Value' is the total of all future receivables from the company suitably discounted at current prices. Even a tiny error in predicting the lifespan of the company or its growth rate, or the discount rate used can make a significant error in arriving at Fair Value.

Often investors use a standalone PE ratio, compare the stock PE with Industry PE or look for a high dividend yield, which is not the correct way. Apart from past performance, one needs to consider the prospects, quality of management, promoter stake, etc. Thus finding worth is a combination of quantitative and qualitative tools.

We at Smart VERC use different techniques for Growth and Value stocks. PEG (Price Earnings to Growth ratio) works very well for Growth stocks and has proved a very effective valuation technique. While for Value stocks, there is no single parameter, and every stock needs to be dealt with differently. At the core of what we are looking for in this fast-changing world is, 'If I acquire a stake in your company, when will my money get doubled?' 

Overall, the valuation part is not as difficult as it is made to be. It comes through experience and a better connection with the subconscious mind. To compare with, it is like driving a car which for outsiders looks very simple, but if you ask a driver to explain, he may find it very difficult even to tell you at what rpm he changes the gear from second to third!

Investing in stocks for the long term offers several advantages that can lead to wealth creation. Some of these include:

• Time to ride out market fluctuations: Over the short term, stock prices can be very volatile and might not reflect the true value of a company. By investing for the long term, an investor can ride out these fluctuations and give the stock time to appreciate.

• Compound Interest: When investing long-term, the investor can benefit from compound interest. Any returns made on their investment will be reinvested, leading to additional returns over time.

• Diversification: Investing for the long term allows an investor to diversify their portfolio and invest in a mix of stocks from different industries and countries. This helps to spread the risk and reduce the impact of any downturns in a particular sector.

• Ability to average costs: Long-term investing also allows investors to average their costs by buying more shares when prices are low and fewer when prices are high.

In conclusion, investing long-term offers several advantages that can lead to wealth creation from stocks. By investing in a diversified portfolio and giving their investments time to grow, an investor can maximize their chances of success.

The keys to success in the stock market include accurately determining the 'Fair Value' of stock, the fortitude to handle market fluctuations, patience, and effective management of a well-diversified portfolio of approximately 15 stocks.

Many individuals have aspirations of becoming wealthy through stock market investments, but in order to achieve this goal, discipline is key. Relying on tips from brokerages or stocks recommended by free advisors can lead to quick failure. If someone promises astronomically high returns, it is important to exercise caution and be wary of unethical business practices.

• Honest investment advisors will never make unrealistic claims.
• When searching for an investment advisor, consider their qualifications, track record, understanding of business, and experience.
• Ask your advisor about their actions during past market crashes and how they advised clients.
• Building long-term wealth with the guidance of a competent advisor is achievable, but be prepared to pay advisory fees of 2% to 3% if they are able to deliver returns of 20% or more.

"Smart Billionaire Picks" (SBP), which comes complimentary with "Smart Gains," began on May 30th, 2001, and has seen an average annual return of 25.38% (CAGR).
The success is attributed to the following:-

• Expertise in determining the true value of stocks,
• The ability to identify potential multi-baggers early on,
• Control of greed and fear, and
• Efficient management of diversified and well-balanced stocks across sectors, weightage, business groups, and market capitalization.

To learn more about SBP, Click here,

At Smart VERC, we adopt a Bottom-Up approach, which starts with analyzing a company's fundamentals, then moves on to evaluate the industry and, lastly, the economy. From time to time, we offer our insights on macro and micro economic parameters. In the long run, the company fundamentals will primarily determine a stock's price, and the market has limited influence.

It has been demonstrated globally that outperforming a well-diversified portfolio of large companies consistently year after year is nearly impossible. The BSE Sensitive Index, a broad-based index comprised of 30 highly diversified and mostly industry-leading stocks, serves as a benchmark. We are proud to announce that Smart Billionaire Picks (SBP), a component (complimentary) of our advisory product 'Smart Gains,' has outperformed the BSE Sensitive Index 76.74% of the time since its start on May 30, 2001. The SBP has generated 25.91% compound returns, compared to 14.13% from the BSE Sensitive Index over the same period.

Any stock in Smart Billionaire Picks (SBP) basket is considered a good buy at its current price. Those interested in following can replicate the complete basket by allocating their investments according to the weights assigned. Since its inception on May 30, 2001, the returns of these stocks have outperformed the BSE Sensex by a substantial margin, with compound returns almost double that of the benchmark index.

It is important to note that this collection of stocks is for demonstration purposes only and should not be taken as a recommendation to buy or sell any particular stock. It can be an educational tool for those looking to learn about diversification in terms of weightings, sectors, and groups, as well as how to make decisions about adding, holding, or exiting stocks in response to market changes. The actions are based solely on stock valuations and disregarding past price performance. The basket is always fully invested, with cash holdings typically being an insignificant amount included in the "Total." For more information on SBP,   Click here,

• Value Stock: A stock is considered a value stock when its intrinsic value, calculated after taking into account all relevant factors, is significantly lower than its current market price. This intrinsic value may be concealed in assets, strong management, patents, technology, or a combination of these factors. Investing in value stocks requires patience as the waiting time can be extended.
• Growth Stock: A growth stock is a stock of a company that is projected to grow at a faster rate than the industry average. As a result, these stocks tend to have higher price-to-earnings ratios compared to the average.

Visit the page Products at a glance.

The advised stocks have a relatively good margin of safety in terms of the difference between their advised price and intrinsic value. However, there are still risks involved, such as sudden market fluctuations that can result in short-term losses, macroeconomic or regulatory changes, or corporate governance issues.

Also, our track record is a testimony to our success; Click here,

Investors may choose to purchase additional shares of a company if the following conditions are met:

• The underlying fundamentals of the company remain strong.
• The current market price is at least 15% lower than the previous buying price.
• The size of the new investment should not exceed 20% of the existing holding, allowing for further purchases in the future.
• The stock does not exceed the weightage assigned at the time of advice.
• The sector weightage of the stock in the portfolio is below 20%.

Regarding the stocks recommended by us, investors can exit the position if:

• The stock price reaches the specified target price or triggers the stop loss level.
• We make an exit recommendation.

For stocks not recommended by us, investors can consider selling the stock if:

• The stock price exceeds its intrinsic value.
• The investor would not buy the stock if they were not already holding it.
• The stock's price has shown a prolonged downward trend relative to the market indices.
• The company's prospects have changed unfavorably due to currency movements, government policies, or changes in commodity prices.
• The stock's weightage in the portfolio exceeds the planned allocation.

Our stock selection process involves evaluating key developments that could alter a company's prospects, such as significant business agreements, budget outcomes, changes in raw material prices, technology partnerships, investments from strategic investors, CEO changes, shifts in industry trends, and other significant events. We then carefully examine the company's fundamentals, including its price-to-earnings ratio, book value, liquidity, return on equity, profit margin trend, and debt-to-equity ratio. The stock is added to our watch list if the fundamentals meet our criteria. Once the stock's price falls below its fair value by at least 20%, we consider it for inclusion in our services based on the individual's risk-return profile and investment time horizon.

• Our aim is to achieve annual returns of at least 30%. Therefore, a slight variation of up to 3% in the price of a stock wouldn't significantly affect the total returns. So, for example, if you purchase a stock with a 5% weightage that is 3% above our advised price, the impact on your overall portfolio will only be 0.15%.
• Our goal is to serve you for the long term, and many of the stocks we advise have become highly profitable. So even if you buy a stock at a price 3% higher than our recommendation and it becomes a huge success, the impact on your portfolio will likely be minimal.

• Duly qualified (BE, ERA, MBA Finance, Ph.D.)
• Long experience of more than 33 years
• Mastered the art of finding the 'Worth' of a stock
• Courage to resist Pull-down during market lows and Push-on during market highs.
• Equally concerned about Risk as to the Returns
• Registered with SEBI
• The client retention rate of 87% is a testimony to our advice and services
• Highly rewarding track record. More at Click here,
• All the products are performing way better than the underlying benchmark stock indices.

To maintain the security of your subscription, it is essential to keep your account information confidential. This subscription is designed for individual use, and accessing it from multiple devices is not permitted. Following this policy can ensure your subscription's continued use and avoid interruption.

Occasionally, confirmation emails may be delayed due to technical difficulties. Please be assured that your payment is secure, as we use a secure payment gateway. If you have not received a confirmation, please Whatsapp +91-9755920780 or email support@smartverc.com, or call +91-9131361959 for assistance.

After subscribing, the invoice can be found in the dashboard after logging in.

There is no refund in case you want to cancel your subscription unless explicitly stated.

Individual investors have the flexibility to determine their investment amount in stocks based on their financial plan, risk tolerance, and available funds.
Portfolio returns, which determine the overall stock returns, are based on the allocation of investments across various stocks. Therefore, to reduce risk, it is recommended to follow the suggested weights in the investment product.
Borrowing money for stock investment is strongly discouraged.

A long-term investment is typically considered to be over a period of 4 to 5 years, which encompasses one complete business cycle.
To reap the benefits of compounding, investments should be made over multiple cycles.
However, many investors opt for shorter investment periods and may fall victim to market downturns even if the underlying company has strong fundamentals.

For inquiries, kindly contact support@smartverc.com or send a WhatsApp message at 9755920780

Publication Date: Every Wednesday by 11 AM. Buy and Sell advice notifications are sent via WhatsApp, Email, and Mobile App. Contents:

• Pick of the Week: One stock is advised with a complete research report. Investors are advised to select the stock based on individual risk profile, expected returns, holding period, etc. The comprehensive report can be found in PDF format on the website dashboard, with regular reviews available. This feature is helpful for medium-term investors with a holding period of 3 to 24 months. The past 24 months of advice are also accessible. On the publication date, brief notifications will be sent via WhatsApp, Email, and Mobile App.
• Smart Billionaire Picks (SBP) (Complimentary): Selected picks from "Pick of the Week" are included in this basket of stocks. Ideal for long-term investors, SBP offers a way to learn about and manage stocks in terms of risk appetite, weightage, diversification, etc. The basket has a growing CAGR of 26% since its start on May 30, 2001, with a starting investment of Rs 1 Lac. Changes are made only on Wednesdays before 11 AM. WhatsApp messages will only be delivered if our number (9755920780) is saved in your contacts. If you do not receive notifications, please reach out to us.

Publication Schedule:

• No fixed date is given, with approximately 12 to 15 stocks advised in a year as opportunities arise.

Research Report:

• The complete research report is published in PDF format and is accessible in the dashboard section of the website.
• Investors can choose stocks based on risk, expected returns, holding period, etc.
• Past reports from the last four years are available in the dashboard area.

Notification of Advice:

• A notification is sent via the mobile app, email, and WhatsApp on the publication date.
• WhatsApp messages will only be received if you have saved our number (9755920780) in your contacts list.
• If you do not receive notifications, please get in touch with us.
• Sell notifications are also sent for reasons such as hitting the target, stop loss, expiry of the holding period, or any other reason.

Reviews:

Research Report Publication:

• A complete stock report is published in PDF format every 5th of the month before noon.
• The report is published on the previous working day if it falls on a holiday.

Delivery of Advice:

• The stock advice is delivered via email, WhatsApp, and mobile app.
• WhatsApp messages will only be delivered if our number (9755920780) is saved in your contact list.

Smart SIP Stocks:

• A list of stocks has been prepared with due consideration to diversification in terms of sectors, weightage, business groups, market capitalization, etc.
• The Smart SIP Stocks assume an investment of Rs 10,000/- per month, but investors can invest as per their capacity while maintaining the weightage.
• If any stock story begins to fade, it will be replaced with a more promising bet.
• Money and stocks remain with the investor; we only provide advice.

Starting the Service:

• This service was started in Sep. 2016.
• Investors who started recently can either invest a fixed amount every month starting from the coming 5th of the month or replicate the stocks in the Smart SIP Stocks in line with the weights assigned if they have a lump sum amount to invest.

Research reports can be accessed in the dashboard section on the website. The latest issue cannot be saved, downloaded, or printed, but all previous issues can be saved and printed.

Notifications for the subscribed product will only be received on the mobile app when you are logged in.

Yes.
In all advisory products the subscribers have an access to the past advice and the period varies from product to product with a minimum period of 24 months for 'Smart Gains'.

Do not invest in a stock if it has reached the target price or stop loss, if the holding period has ended, or if it was exited for other reasons. Likewise, avoid stocks that are close to their target or stop loss. In all other cases, investment is possible.

The stock entry and exit advice is delivered through a Mobile App notification, email, and WhatsApp.

Smart Gains has two sections-

• Pick of the Week: The investment horizon varies from 3 to 24 months. 
• Smart Billionaire Picks (SBP): This stock basket has been operating since 30 May 2001, aiming to maximize returns.

If a stock advised in "Pick of the Week" reaches its target price, investors should sell it, but if it is also included in SBP and the investor is willing to hold it for the long term, they can follow SBP's advice. A stock can be advised for sale in "Pick of the Week" but still be held in SBP due to a favorable long-term outlook, and vice versa, where the stock may be sold from SBP but still kept in "Pick of the Week."

Our advisory services provide specific weightage/allocation guidelines for each stock. As an illustration, if a stock is given a weightage of 4% and your portfolio size is Rs 10 lacs, your investment in that stock should be 4% of Rs 10 lacs, which is Rs 40,000. The weightage is determined by considering various qualitative and quantitative factors to ensure that if the stock performs well, it will lead to substantial gains for the portfolio. On the other hand, if it doesn't perform well, the impact on the overall portfolio value will be minimal.

The investment amount may vary from person to person depending on the -

• Income and Expenses.
• Risk profile.
• Capacity to digest the volatility
• Targets set such as to meet a specific goal like Child marriage, early retirement, etc.

As a general guideline, investing (100 - your age) percent of your total investment portfolio in equities is recommended. So, if you are 35 years old, investing around 65% in stocks through direct stocks or mutual funds is advised. New investors need to start small and gradually increase their investment as they become more familiar with market volatility.

Notifications for advice are sent through broadcast groups on WhatsApp, so they will only be received if our contact number (+919755920780) is saved in your contact list/Address-book.

There is no common stock in 'Pick of the Week' (Smart Gains) and Smart multibaggers.

Individual discussions or updates regarding the recommended stocks are not entertained. Instead, the updates can be found in the "Review" section of the website and mobile app, which is accessible by logging in. It will be communicated to all subscribers in case of a necessary buy or sell action.

Stop Loss is like Health Insurance, whose importance we genuinely understand when we fall sick.
Stop Loss is not desirable from the long-term point of view. In fact, till a couple of years ago, we were not providing Stop Loss.
We started providing Stop Loss due to the following reasons: -

• Stocks covered in Smart Gains under ‘Pick of the week’ has a holding period of 3 to 24 months, which is not a long-term duration. We are trying to derive an advantage from the medium-term Price-Value mismatch under this product.
• Due to technological disruption in many sectors, one cannot remain invested for extra-ordinarily long times like Auto OEMs, Optic fiber, etc.
• Sometimes, specific internal company development is known only to select a few. Unfortunately, it becomes too late until that news is available in the Public domain. Though we do not have any inside information via Stop Loss, we try to restrict losses.

• We are addressing the advice needs of an average risk-return profile investor. By eliminating the ‘Stop Loss,’ there is a likelihood of high volatility and, at times, may lead to heavy Loss for conservative investors.
   

      Given above,

• Smart Gains: Under ‘Pick of the Week,’ if the share price approaches ‘Stop Loss’ and the stock prospects remain bright, we shall modify the Stop Loss and increase the holding period if desired.

• Smart Multibaggers: Being long-term advice, we shall further increase the depth of Stop Loss if the price approaches ‘Stop Loss’ and may change its weightage if desirable.
   

Examine your portfolio and ensure each stock has the assigned weightage as indicated in our advice. No sector should make up more than 15% to 20% of the portfolio. This will allow the funds freed up to be invested in future advice.