At a Moneylife event, where all the seats were booked, Debashis Basu, explained in detail all the things that a saver needs to know about how and when to invest in stocks and bonds

With the BSE Sensex near its all-time high, and with bonds yields currently above 8.50%, is it the right time to buy stocks and bonds? At a Moneylife event titled, ‘Get the Price, Value and Timing Right!’, Debashis Basu, editor and publisher of Moneylife, explained all that a saver needs to know about how and when to invest using a methodical approach.

In the first part of the session, Mr Basu captivated the audience by explaining how over the past few decades scientists have made stunning discoveries about the way the human mind decides about risks, rewards and chances of win or loss. “They have found that our brain is not consistent, efficient and a logical device we think it is,” he explained. He further elaborated on how these discoveries make us aware of our behavioural biases and become better investors.

As the markets were moving sideways for most past of the last three to four years, fund houses have been constantly pushing debt funds as safe products. However, as Moneylife has pointed out many times in the past and reemphasised in the section on when to buy bonds and bond funds, the returns from debt funds can be volatile and low. When comparing the returns to fixed deposits, debt funds may not always be a better option even post-tax. How the returns from debt can be better by having a sense of timing. Mr Basu explained how one could time their bond investments by analysing bond yields.

Many investors seek, and blindly follow, tips and advice that are freely available. Most do not follow the process or have the discipline to cross-check the facts and invest with conviction. An average investor has generally no clue about what he is buying or selling. In an exclusive session on stock, Mr Basu explained how to pick the right stocks at the right time and exit profitably. During the course of the session, he explained different valuation metrics, like the cash value dividend yield, enterprise value multiple, etc to pick stocks. By giving historical evidence, Mr Basu showed how investors could time their buying and selling using different metrics.

The session included a lively interaction where Mr Basu not only answered the query of participants but also gave them information on different books and websites which the participants could read up on and hone their investing skills. The participants were also given an exclusive preview of Moneylife’s path-breaking new service that will equip savers with a select list of products and timely information they need. The participants of this event also received an exclusive discount for subscribing to this new service.

Smart saving and smart investing is all about buying the right product at the right time. If you missed out on this event, not to worry, Moneylife will be conducting many more sessions such as this in future. Keep yourself updated on such events and new services, click here to become a Moneylife member.