FAQs

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. Investing for the long term allows an investor to 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 to create wealth from stocks. By investing in a diversified portfolio and giving their investments time to grow, an investor can maximize their chances of success.

Many individuals aspire to become wealthy through stock market investments. Unfortunately, relying on short-term tips can lead to quick failure. Exercising caution and being wary of unethical business practices is essential if someone promises astronomically high returns.

• Honest analysts will never make unrealistic claims.
• When searching for a research analyst, consider their qualifications, track record, understanding of business, and experience.
• Ask your Analyst about their actions during past market crashes and how they guided clients via recommendations.
• Building long-term wealth with the guidance of a competent analyst is achievable, but be prepared to pay an annual fee of 2% to 3% if they can deliver returns of 20% or more, considering that the BSE SEnsitive Index has delivered about 15% compound returns over a long period.

"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 and 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 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,

Visit the page Products at a glance.

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 recommendation.
• 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.

• We target 20% to 35% returns depending on the product and stocks. 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 4% weightage that is ruling 3% above our recommended price, the impact on your overall portfolio will only be 0.12%.
• We aim to serve you for the long term, and many of the stocks we recommended 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.

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 allocating investments across various stocks. Therefore, to reduce risk, following the suggested weights in the investment product is recommended.
Borrowing money for stock investment is strongly discouraged.

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

• Pick of the Week: One stock is recommended with a complete research report. Investors are supposed to select the stock based on individual risk profiles, expected returns, holding periods, 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 recommendations are also accessible. On the publication date, brief notifications will be sent via WhatsApp, Email, and Mobile App.
• Smart Billionaire Picks (SBP): SBP is a complimentary service provided exclusively to the subscribers of Smart Gains. 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 a.m. 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.

Stock Recommendation Schedule:

• There is no fixed date; approximately 12 stocks are recommended yearly 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.

Notifications:

• You will receive notifications through the mobile app, email, and WhatsApp on the stock recommendation date.
• To receive WhatsApp messages, ensure that you have added our number (9755920780) to your contacts list.
• Exit notifications may be triggered by factors such as reaching the target, activating the stop loss, the expiration of the holding period, or other relevant reasons.
• Align your investments with the weightage assigned at the time of the recommendation, which should reflect your anticipated total portfolio size 12 months from now.
• If the stock price experiences rapid and significant fluctuations, we will advise you to adjust your allocation accordingly. The same applies in the opposite direction.

Reviews:

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

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

The stock entry and exit recommendations along with other key information are delivered through a Mobile App notification, Email, and WhatsApp.

Smart Gains has two sections-

• Smart Gains: Pick of the Week: The investment horizon varies from 3 to 24 months. 
• Smart Billionaire Picks (SBP): This is a complimentary service provided only to Smart Gains subscribers. This stock basket has been operating since 30 May 2001 and aims to maximize returns.

If a stock recommended in "Smart Gains: Pick of the Week" reaches its target price, investors can exit, 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 recommendations. A stock can be recommended for sale in "Smart Gains: 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 "Smart Gains: Pick of the Week."

Our recommendations 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.

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, until a couple of years ago, we did not provide Stop Loss.
We started providing Stop Loss due to the following reasons: -

• Stocks covered in Smart Gains under ‘Pick of the week’ have a holding period of 3 to 24 months, which is not a long enough period. 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 developments are known only to a select few. Unfortunately, it is 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 stock investment needs of an average risk-return profile investor. By eliminating the ‘Stop Loss,’ there is a likelihood of high volatility, which, at times, may lead to heavy Losses for conservative investors.
   

      Given above,

• Smart Gains: Under ‘Pick of the Week,’ we suggest a Stop Loss at about 20% below the recommended price. 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: Under this scheme we suggest a Stop Loss at about 30% below the recommended price. Being a long-term recommendation, 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 our recommendation indicates. 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 recommendations.