FAQs

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Why are shares considered a top option for building wealth through investing?

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.
Investment in Equity shares provides the best route to riches: high returns, high liquidity, and low risk for long-term investors. Success depends on the ability to rightly value shares and a strong stomach to digest the whirlwinds of the stock market. Alternatively, you should have access to a good stock research recommendation provider. Historically, the Indian share market has outperformed all other investments with compound returns of about 15% per annum. Warren Buffett, one of the wealthiest persons in the world, has created wealth through shares.

Is investing in IPO safe?

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.

How can one determine the "Fair Value"?

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!

What is the best way to create wealth from stocks?

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.

What is the key to success in the stock market?

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.

Can you recommend some good books on investing?

Book name Publisher Writer Price (approx.)
One Up On Wall Street Simon And Schuster Peter Lynch, John Rothchild Rs 400
Beating the street Simon And Schuster Peter Lynch, John Rothchild Rs 400
The Little Book of Valuation: How to value a company ... Wiley India Pvt Ltd. Aswath Damodaran Rs 350
It's When You Sell That Counts McGraw-Hill Donal L. Cassidy Rs 600
The Winning Investment Habits Of Warren Buffett & George Soros Truman Talley Books Mark Tier Rs 1800

How can one find a competent and trustworthy stock research analyst?

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.
Finding a good research analyst can be more challenging than finding a good stock.

What is the secret success of 'Smart Billionaire Picks'?

"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,

Why is there no prediction regarding the market in your articles and webinars?

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.

Why is the emphasis placed on outperforming benchmark stock indices?

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.

How can one benefit from Smart Billionaire Picks (a complimentary part of 'Smart Gains') now, given that it was started long ago?

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,

What is the criteria for grouping stocks as Growth or Value?

  • 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.

What is the most appropriate product for me?

Visit the page Products at a glance.

What assurance is there of the success of the stocks recommended in your products?

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

It is important to note that there is no guarantee of success for the recommended stocks in any of our services. However, we possess expertise in accurately valuing stocks and have the patience and courage to launch new schemes when others are hesitant. As evidence, our track record shows that we successfully launched the "Smart Value Gains" scheme in March 2009 with a starting sum of 1 lakh Rupees, and it reached 4 lakh Rupees in just 11 months. The "Smart Fast Track Gains" scheme was launched in June 2009 with a starting sum of 1 lakh Rupees and doubled in just 10.3 months.

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

When and how should one reduce the average acquisition cost by averaging down?

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%.

When is the appropriate time to sell a stock?

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.

What is the procedure for choosing stocks?

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.

For more, visit Investment Philosophy

Is it prudent to purchase a stock if its ruling price exceeds the recommended price?

  • 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.

Why should you choose us?

  • Duly qualified (BE, ERA, MBA Finance, Ph.D.)
  • Long experience of more than 34 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 recommendations and services
  • Highly rewarding track record. More at Click here,
  • All the products are performing way better than the underlying benchmark stock indices.

Can I share my account username and password with a friend or colleague?

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.

I have made the payment but have not received any confirmation.

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.

How can I obtain an invoice?

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

Is it possible to cancel my subscription and receive a refund?

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

What minimum investment is required for your stock recommendation services, and how much should be invested in each stock?

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.

What is considered a long-term investment?

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.

In case of a query about the recommended stock analysis, whom should I contact?

For inquiries, kindly contact support@smartverc.com or send a WhatsApp message at +91-9755920780

How to use the product ‘Smart Gains’ service effectively?

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. Brief notifications will be sent via WhatsApp, Email, and Mobile App on the publication date.
  • 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 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.

How to use the ‘Smart Multibaggers’ service?

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:

Regular stock reviews can be accessed in the dashboard section on the website and the mobile app.

I am unable to download / Save / Print the latest issue

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.

I am not receiving notifications on the mobile App.

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

Will the new subscribers get access to the recommendations made in the past?

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.'

Is it possible to invest in a previously recommended stock?

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.

What is the method of conveying the recommendations?

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

What distinguishes the stocks recommended under 'Pick of the Week' and 'Smart Billionaire Picks' in Smart Gains?

Smart Gains has two sections-

  • 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 the subscribers of Smart Gains. This stock basket has been operating since 30 May 2001, aiming to maximize returns.

If a stock recommended in "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 "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."

What is the recommended investment amount for a single stock, and how is its weightage determined?

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.

What is the recommended amount to invest in Equity?

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.

Generally, 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 recommended. New investors must start small and gradually increase their investment as they become more familiar with market volatility.

I haven't received stock recommendation notifications on WhatsApp.

Stock recommendation notifications are sent through broadcast groups on WhatsApp, so they will only be received if our contact number (+91-9755920780) is saved in your contact list/Address-book.

Are the stocks recommended under Smart Gains and Smart Multibaggers different?

There are hardly any common stocks in 'Pick of the Week' (Smart Gains) and Smart Multibaggers.

Is it safe to provide personal information online?

Our website uses the industry-standard Secure Socket Layer (SSL) technology to encrypt all personal data that is sent by your computer to our server. 

Is it possible to discuss valuations or obtain updates on the recommended stocks?

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.

What is the process for supplying GST information?

You can input your GST information before reaching the payment gateway when subscribing.

What occurs if I choose not to renew my subscription?

Upon completion of your subscription, you will no longer receive notifications regarding future and previous recommendations, and access to all subscribed content will cease. However, your account will remain active, and you can resubscribe to products from your dashboard anytime.
 

What is the purpose of having Stop Loss in Smart Gains and Smart Multibagger?

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.

I am fully invested based on your recommendations; how to manage funds further?

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.

To subscribe to a product, is it necessary to first create an account?

You'll be prompted to provide certain information when subscribing to a product. This includes setting up your password. Upon successful payment, your subscription will be immediately activated. You will then have access to your dashboard, which provides access to past research reports and recommendations.

What types of payment do you accept?

We accept payment via credit cards, debit cards, net banking, UPI, and wallets.

In Smart Gains which section is better, 1) Pick of the Week or ii) Smart Billionaire Picks?

If you have a time horizon of at least 3 years and a lump sum of funds to invest and prefer not to make frequent changes to your investments, then you may consider following the SBP strategy.
On the other hand, if you are comfortable receiving weekly stock publications and willing to invest regularly in individual stocks for an average period of 12 months, then you may want to follow the 'Pick of the Week' strategy.

Are the stocks that were recommended being reviewed by you?

After making a stock recommendation, we keep tabs on all the company's progress, including changes to ratings, quarterly results, presentations, conference calls, annual reports, and management commentary. Any noteworthy occurrences are then included in the 'Review' section (denoted by a blue downward arrow) of the subscriber dashboard for the subscribed product.

I want to invest, but I want to avoid losses.

We understand your concern and realize that many others feel the same way.

Investing is a means to achieve your dreams, and protecting your hard-earned money is important. Losses can indeed occur, even for the best investors. However, it's crucial not to panic. Long-term investing involves the possibility that some investments may lose their value significantly, but the potential gains can far outweigh any losses.

Smart investors create portfolios with a diversified selection of a dozen or more strong stocks, where the winners tend to outweigh the ones that didn't perform as expected. This strategy has helped numerous investors build lasting wealth. We recognize that you may still have questions or doubts. It's natural to be unsure about whether Smart VERC services are worth exploring and if they align with your needs. In this case, we recommend reviewing the results that we have achieved through our services during the last more than 20 years.

How do you determine which stocks to suggest for each service?

Smart Gains: We recommend stocks with visibility for up to two years, aiming for annualized target returns of 20% to 30%.

Smart Billionaire Picks: This service includes selected stocks from Smart Gains. We feature stocks with medium-term visibility, and sometimes, this visibility extends during the holding period, transitioning a medium-term investment into a long-term one. At any given time, we hold the top 20 stories with promising medium to long-term prospects.

Smart Multibaggers: This service recommends stocks with visibility for over two years, targeting annualized returns of 30% to 35%. There is minimal overlap in stock recommendations between Smart Gains and Smart Multibaggers.

Have a Question?

Here at Smart VERC, you have one point of contact on Phone, WhatsApp, and Email: a highly-skilled, detail-oriented individual who can resolve almost all your issues.

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