FAQs

Commonly used investment options are:

• Bank / Company Fixed Deposits: Returns are low and after deducting Inflation and impact of Tax the real returns are abysmally low.
• Gold: Returns are just sufficient to cover Inflation.
• Mutual Funds: About 70% Mutual Funds are not able to outperform their benchmark indices. Also, the Expense ratio for actively managed Mutual Funds is high around 2% 
• Real Estate: Requires considerable investment. Lacks liquidity. Long term returns are much lower than stock returns.
• Commodities: Highly speculative. One needs to have thorough knowledge not only at the national but also international level.
• Equity Shares: Investment in Equity shares provide the best route to riches. High returns, high liquidity and low risk for long term investors. Success depends on the ability of rightly valuing shares and a strong stomach to digest the whirlwinds of the stock market. Alternatively, you should have access to a good investment advisor.

Historically the Indian share market has outperformed all other investments with CAGR of ~15%. Warren Buffett, one of the richest persons in the world has created wealth through shares.

IPOs are not as safe as being known in investor circles. Before going public, companies are not required for as many disclosures as post IPO. Many a time it has been found that certain company policies changed post-IPO like Dividend payout, etc.

"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 aticle we always compare the 'Price' we pay and the 'Value' we get, consciously or sub-consciously.

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 extremely difficult for an investor to have strong confidence and develop a conviction.

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

Often investors use standalone PE ratio, or compare the stock PE with Industry PE or look for high dividend yield, which is not the correct way. Apart from past performance, one needs to consider the future 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, every stock needs to be dealt with differently. At the core of the core 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 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 gear from 2 to 3!

Day Trading: The buying and selling transactions that are closed within the same trading day. Ask yourself what specialty you have that market should reward you against millions of investors fighting to earn returns in a short period. Investors should avoid it. It creates excitement, insomnia for many investors. Hardly anyone has created long term wealth. Highly risky!

These stock derivatives can be used for Hedging as well as Speculation. Hedging is safer, while Speculation has a very high degree of uncertainties and could be a risky proposition. 

Warren Buffett describes Derivatives as “financial weapons of mass destruction”.

Ability to find ‘Fair Value’ with fairly good accuracy, big enough stomach to digest emotional upheavals, patience and efficiently managing a portfolio.

Many people dream of striking rich, by playing the share market. To make this castle-in-the-sky a reality, one needs to be much disciplined. Heeding to tips from brokerage firms or hot stocks from free advisors can break you very fast. If someone is promising the moon and stars (unbelievably high returns), be cagey, be wary of shady business practices.

Remember: Honest investment advisors will never make ridiculous claims. Anybody claiming to get you astronomically high returns should be watched with suspicion.

Look for the education, track record, and experience of the advisor. Ask your advisor how many crashes he has seen and what he asked clients to do at that time.

Building long-term wealth under the guidance of a good investment advisor is very easy. Be ready to pay advisory fees about 2% to 3% if he is able to get you 20% long term returns.

Smart Billionaire Picks (part of Smart Gains) started on 30 May 2001 has gained @24.91% per annum.

Success is attributed to:-

• Expertise in deriving the stock’s real worth.
• The knack to spot potential multi-baggers at an early stage.
• Control on greed and fear.
• Maintaining efficiently a diversified and well-balanced portfolio in terms of sector, weightage, business groups and market capitalisation.

We follow the bottoms-up approach. First the Company fundamentals, then the Industry and last the Economy. Occasionally, we do provide our views on the macro and micro parameters of the economy. In the long term mainly it is the company fundamentals that will create wealth for investors.

Worldwide it has been proved time and again, that beating a well-diversified large company portfolio consistently, is not an easy task. BSE Sensitive Index is derived from a basket of 30 stocks which are highly diversified (industry-wise) and mostly industry leaders. There are only handfuls of Mutual Funds in India and even overseas which have beaten the indices consistently in the long term.

We are proud to share that Smart Billionaire Picks (SBP) and many such other schemes have beaten the indices by wide margins SBP has outperformed BSE Sensex by almost 100% since its start on 30 May 2001 

Any stock part of ‘Smart Billionaire Picks’ is a good buy at the current price. Those who wish to follow can replicate in proportion to the weights assigned. Since the start on 30 May 2001, the aggregate returns of these picks is almost double the BSE Sensex returns on a CAGR basis.

This collection of stocks is only for demonstration purposes. It should not be construed as a solicitation to buy or sell any stock. It can be very useful for those who wish to learn how to diversify in terms of weightages, sectors, Groups etc, how to Add / Hold / Exit from stocks and respond to changing market conditions. Advice is based solely on the valuation of the stock, with no bearing on past price behavior. As a policy we always remain fully invested, hence Cash not indicated which is always an insignificant amount, but captured in ‘Total’.

• Value Stock: After considering all the factors we arrive at intrinsic value (fair value). If this intrinsic value is considerably lower than the ruling stock price, then it is called a value stock. Often this value is hidden in the form of Assets or Management quality or Patents or Technology etc and the combination thereof. In these category stocks, the waiting time can be pretty high and need lots of patience.
• Growth Stock: Stocks of those companies which are expected to grow faster than the industry average. Such stocks command higher than the average P/E ratios.

Visit the page Products at a glance.

Advised stocks have a reasonably good margin of safety in terms of the advised price and the intrinsic worth of the stock.
Still, there are chances of volatile stock returns:-

• Wild stock market movements may lead to sharp erosion in gains in the short term.
• Major changes in macroeconomy parameters or Regulatory changes can impact short term prospects.
• Corporate governance issues can erode the gains.

Thus there is no guarantee of returns, but long term track record indicates a very high success rate.

Categorically we state that ‘We do not promise or provide any guarantee for success for the advised stocks in any of our services’. Yes, we do claim to have expertise in valuing a stock with fairly good accuracy. We also claim to have patience and guts to start new schemes when our peers dare to even talk of the stocks. (In March ’09 ‘Smart Value Gains’ was launched with a notional sum of Rs 1 lacs and it surpassed Rs 4 lacs in just 11 months. Again in June 2009 a new scheme ‘Smart Fast Track Gains’ was launched with a notional sum of Rs 1 lacs which multiplied two times in just 10.3 months.)

Investors may consider buying more shares of the company, if:

• The company story remains intact.
• Ruling price is at least 15% below the last buying price.
• Fresh purchases should not be more than 20% of the existing holding. So that there is a scope for adding further.
• Stock occupies no more than the weightage indicated at the time of advice.
• The industry (to which the stock belongs) weightage is below 20% in your portfolio.

For stocks advised by us, investors can exit If the stock price reaches Target or hits Stop Loss or we advise you to sell.

For the stocks not advised by us investors can check for the following:- 

• If the stock price is above the intrinsic worth.
• Had this stock not been in your portfolio, would you buy it today? If the honest answer is ‘No’, then it is time to make an exit.
• If the stock price movements are distinctly diverging downward with respect to stock indices for prolonged times.
• If the prospects have changed and are not favorable for the company growth (maybe due to currency movements, Government policies, crude oil movement etc).

Any key development which can change the fortunes of a company (like acquiring a big order, Budget impact, changes in raw material prices, technology tie-up, Strategic investor acquires stake, changes in industry prospects, or any other event which can have significant impact on its future prospects) is scrutinized for other fundamentals like P/E, book value, liquidity, return on equity, trend in Profit margins, Debt /Equity ratio. Satisfied with fundamentals the stock is included in our ‘Watch List’. As and when the stock price recedes below ‘Fair Value’ by at least 20%, the stock is advised for various services suiting Risk-Return profile.

For our investment philosophy visit the page under 'Resources'.
Visit the page Investment Philosophy

• Since we are targeting no less than 30% annual returns, a variation of up to 3% will not make much difference in total returns. Thus if an investor acquires a stock with 5% weightage at a price of 3% higher, then the impact on total portfolio shall be only 0.15%. 
• We are here to serve you for a long-long time. Large numbers of advised stocks have turned megabaggers. If you buy a stock at a price 3% above our recommended price and stock turns into a ten-bagger, then 3% variation will have hardly matter.

• Long experience of more than 30 years
• Mastered the art of finding '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

Since the start of the journey on 31 May 2001, it has delivered a CAGR of 25% plus. This portfolio has seen many ups and downs, the dotcom bust, several scams, elections and many more major events. Interestingly all the time it remains fully invested. Changes are made only on Wednesday morning around 10 am. Those who are ready to invest for long-duration (minimum 5 years) with average risk-return profile may follow it with matching individual stock weightages. 

It is strictly prohibited. This is a single-user subscription. The system will automatically block access if there are attempts for multiple/parallel logins. Also, we may terminate your subscription without any refund of remaining services.

At times confirmation emails are delayed because of technical issues. Rest assured your money is safe. We have integrated one of the safest payment gateways. Drop us an email at support@smartverc.com or call +91-9131361959 and we will look into it.

Once you subscribe, the Invoice can be accessed from the Dashboard after log-in.

No, subscriptions are non-refundable.

The investment amount is to be decided by the individual investors depending on their capability and capacity to invest. To keep the investments diversified as per individual stock risk-return characteristics investors are advised to invest in line with the weightage assigned in the advice report.

Investors are strictly advised not to borrow for investment in stocks under any circumstance. Also, the amount to be invested should be for at least one complete business cycle of about 5 years.

One complete business cycle which lasts for about 4 to 5 years can be considered the as long term. To get rewards of compounding one should invest for multiple cycles. Often investors invest for much lesser periods and get trapped in down cycles despite the company under consideration having sound fundamentals.  

You may kindly write to support@smartverc.com or send Whatsapp message at 9131361959 

This is a model portfolio to demonstrate and educate investors about the importance of weightages, diversification in terms of market capitalisation, industry and business groups and last but not the least the way to generate better returns by picking fundamentally sound stocks and waiting patiently for the opportunity to exit or add more.

• Date of publication @ Wednesday by 11 AM
• Contents – 

Pick of the Week

One stock is advised with a complete report. Based on the individual Risk Return profile, investors are supposed to select the stock based on given parameters like Risk, expected returns, holding period, etc. This complete report along with other features like IPO Monitor, Market My beat, Smart Academy, Smart Watch etc is available in PDF format.

Past advice up to 15 months is available in ‘Past Advice Review’.
On the date of the publication, you will be notified in brief about this pick via SMS Message, Email, WhatsApp, and Mobile App (under development)

Smart Billionaire Picks

Select picks from the 'Pick of the Week' are included in this basket of stocks. Started on 30 May 2001 with Rs 1 Lac the present value is Rs 59 lacs delivering CAGR returns of 24.81% every year.
Good way to learn and practice to manage stocks in the portfolio in terms of Risk appetite, Weightage, Diversification, etc. Changes are made only on @Wednesday at 10 am. Changes if any shall be notified through various channels as mentioned before. In case you are not receiving notifications, please contact us.

Past Advice Review

All the stocks advised in ‘Pick of the Week’ are reviewed. Subscribers shall be notified for any stock achieving Target or hitting Stop Loss or expiry of Holding Period.

• Date of Publication: No fixed date. 
• ‘Research Report’ - Complete report is published in PDF format. Investors are supposed to select the stock based on given parameters like risk, expected returns, holding period etc. Past issues up to the last 4 years are available in ‘Past Advice Review’. On the date of the publication, notification is sent in brief via SMS Message, Email, WhatsApp, and our App (under development). In case you are not receiving notifications, please contact us.
• ‘Past Advice Review’ - All the advised stocks up to the last 4 years are reviewed. Subscribers shall be notified for any stock achieving Target or hitting Stop Loss or expiry of Holding Period.

• Date of Publication: No fixed date. 
• ‘Research Report’ - Complete report is published in PDF format. Investors are supposed to select the stock based on given parameters like Risk, expected returns, holding period etc. On the date of the publication notification shall be sent via SMS Message, Email, WhatsApp, and Mobile App (under development). All the stocks advised are also part of the ‘Smart Freedom Stocks’
• ‘Smart Freedom Stocks’. To assist investors we have prepared the list of stocks with due consideration to diversification in terms of sectors, weightage, business groups, market capitalization etc. Money and stocks remain with the investor, we shall only advise. Any changes in this list shall be notified through various channels. In case you are not receiving notifications please contact us.

• Date of Publication: Every fifth of the month at 12 noon. If a holiday, then previous working day.
• ‘Research Report’ - Complete stock report is published in PDF format. Investors are supposed to select the stock based on given parameters like Risk, expected returns, holding period etc. On the date of the publication, you will be notified in brief via SMS Message, Email, WhatsApp, and Mobile App (under development). All the stocks advised are also part of the ‘Smart SIP Stocks’
• ‘Smart SIP Stocks’. To assist investors we have prepared the list of stocks which can be followed with due consideration to diversification in terms of sectors, weightage, business groups, market capitalization etc. Money and stocks remain with the investor, we shall only advise. Any changes in this list shall be notified through various channels. In case you are not receiving notifications please contact us. 
• We maintain the Smart SIP Stocks assuming an investment of Rs 10,000/- per month. Investors can invest as per individual investment capacity but should maintain the weightage.
• If any stock story begins to fade the same shall be replaced with a more promising bet.
• This service was started in Sep. 2016. Those who started recently can - 

a) Invest a fixed amount every month starting from the coming 5th of the month.

b) In case you also have some lump sum amount to invest, then you may replicate the stocks in ‘Smart SIP Stocks’ in line with the weightages assigned.

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