Frequently asked Questions
Q. What is Telefolio Gold?

A. Telefolio Gold is a collection of investment ideas based on our research and insights. Investment logic, financial projections, targets and a lot of financial and non-financial information are shared with you for each idea.

A unique feature of Telefolio Gold is that for each investment idea, various indicators like fundamental stand, target price, investment term, company risk, market risk and liquidity risk are given. All these indicators are periodically monitored and updated.

The main objective of Telefolio Gold is to increase your confidence in the investment process so that you can navigate market and scrip fluctuations with ease.

 

Q. How does Telefolio Gold increase my confidence?

A. Research reports and update give you confidence in your investments. Research report details the investment logic behind the idea and update keeps track of the logic as environment changes.

Target price and potential upside give you confidence to hold and add to your holdings even when the current price has gone up or down significantly from your initial buying price or our initial recommendation price. It also guides you in profit booking after realizing enough gains. This prevents selling too early or too late.

A positive fundamental stand gives you confidence that fundamentals have not changed even though market prices have moved in either direction.

Company, market and liquidity risk indicators help you to know the risks you are taking so that you take risks as per your capacity and willingness. Key risks to achievement of price target for each idea are mentioned in the research report for that idea. Having known and consciously taken the risks, you will feel more confident about your investments.

Investment term helps you differentiate between scrips for the short term and those suitable for the long term. It also gives you confidence to hold certain scrips for the long term irrespective of market gyrations.

 

Q. How does the Telefolio Gold website work?

A. While all the ideas are listed under Full List section, they are also listed under various other sections to quickly facilitate selection of scrips for buying, holding, profit booking, selling or monitoring.

Telefolio Gold distributes the ideas under various sections based on Potential Upside (PU).



Q. What is Potential Upside?

A. Potential Upside (PU) % is calculated as (Target Price – Current Price)/Current price * 100

PU is calculated based on the current price, which may be delayed by a few minutes.

PU indicates how much return can be expected from the scrip from the current level. While PU is an important factor to consider for selection of a scrip for investment, one should also consider the risk factors.




Q. How do I select the scrip for investment?

A. Normally, investment in scrips with good potential upside is preferable. These scrips are listed under Ideas You Can Explore sections.

Ideas You Can Explore lists scrips with good potential upside as their current prices are still away from targets. However, one should bear in mind that sometimes known or unknown developments may lead to substantial fall in scrip prices. But these developments may not be reflected in targets, which are revised quarterly or the development is not known. Hence, it is better to avoid scrips that are falling continuously. It is better to invest in scrips that are range-bound or slowly rising.

However, this does not mean that scrips listed under Other Lists are not worth investing. Potential upside is calculated based on the current targets and it is possible that new developments may lead to upward revision in target and substantial increase in potential upside. As we normally revise the target quarterly, it is possible that recent positive known or unknown developments are not reflected in the targets. Hence, one can even consider investments in scrips listed under Ideas You Can Watch. In this section, scrips whose current prices are near targets are listed. You can exercise your judgment and select scrips for investment or profit booking from this list.

Research updates, giving regular updates on fundamental stand, projections and targets for existing ideas are given in the Latest Ideas section. They reinforce your confidence to invest/reinvest in the existing ideas at regular intervals.



Q. Should I wait for new ideas?

A. Do not wait for new ideas. New ideas are introduced only when Ideas You Can Explore section do not offer enough investment opportunities and/or we start tracking any new idea prompted by various reasons. Our Research team is focused on helping you make most from the ideas listed in Ideas You can Explore section and introduction of new idea is infrequent. Long-term portfolio building requires focus on limited number of scrips and earning maximum from that limited number. Only traders need new ideas for short-term and Telefolio Gold is not meant for them.

Latest Ideas section lists down Research Reports of ideas in the date-wise order in which they were recommended showing the most recent one at the top.



Q. How do I select from IPOs?

A. IPO Diary giving past, current and forthcoming IPOs are available in Latest Ideas section. CM rating is given for each IPO whose size exceeds Rs 100 crore.

CM Rating Reckoner

Rating range Risk-return profile Recommendation
51 or above Low risk, moderate to High return Must subscribe
45-50 Low risk low return or Moderate risk, moderate/high return May subscribe
40-44 High risk high return Avoid, however active risk seekers can try
Below 40 High risk, low/moderate return, Moderate risk low return Do not subscribe



Q. How many ideas should I invest in?

A.It is always desirable to invest in a portfolio of companies across various sectors, market-caps and risk profiles. Even if you are an aggressive investor, based on your capacity and willingness to take risks, you should invest in a portfolio and not in a limited number of scrips.

There is no scientific basis to decide on the number of scrips to invest. However, it may be better to invest in at least 10 scrips and avoid investing in more than 20 scrips. This means one should try to invest at least 5% of funds in the selected scrip and need not invest more than 10% of funds in any one scrip.

The size of your funds and market conditions may dictate the inclusion of more scrips in the portfolio. But tracking scrips becomes difficult if there are too many scrips in the portfolio. Moreover, too much diversification does not yield any benefits.



Q. How do I select the scrip for profit booking?

A. Scrips that have already run their course and are well above targets are listed under Ideas That Market Liked section. The market has recognized these ideas and are handsomely rewarding the investors in these scrips. One can consider gradual profit booking in these scrips.

However, these scrips are generally in an upward momentum zone and they do increase continuously well beyond targets. So do book profit gradually and do not treat the target as the final price.

It should also be remembered that targets can move up as and when revised and we may like scrips that the market has also liked.

You may also like to invest in some scrips for the long term or you may like to keep a portion of your holdings in each invested scrip for the long term, irrespective of the targets.





Q. How do I select scrip for selling even at a loss?

A. It is possible that after we have introduced the idea for investment, fundamentals may have turned adverse. Scrips for which we have changed our fundamental stand as negative are listed under Ideas We Dropped. Our fundamental stand turns negative if we expect adverse results/developments to last for more months. Temporary changes in fundamentals are ignored.

To avoid big losses, you can decide to fix your own stop loss level for all the scrips in your porfolio. Here you should take in to account market conditions. If the stock indices are crashing, its normal for scrips to fall and one need not exercise stop loss level in such cases. However, if a scrip is falling continuously against stable/good market conditions, you can activate your stop loss level to exit from the scrip. You may consider reentry in such scrips when it has stabilized or has gone into an uptrend.

There is no scientific basis for deciding on stop loss level. Normally, decision to exit at loss is taken based on fundamentals and not based on technical stop loss levels. Hence, we are not giving any stop loss levels. You can decide your stop loss levels based on your willingness and capacity to bear losses.



Q. How slowly or speedily should I invest or sell?

A. Normally buying as well as selling should be done gradually in various lots over a period of time. The objective is to get a price representing the average of number of days. However, there is no scientific way of deciding the pace of buying/selling. Sometimes market trend or development may dictate fast buying or exit. One should exercise one’s own judgment.



Q. What do I do with scrips you have stopped tracking?

A. It is not possible for us to track all the ideas we recommend, the market have liked or disliked some ideas so much that it is not worth tracking them at the prevailing rates. Ideas We Stopped Tracking lists all the ideas that we have abandoned tracking.

Most investors will prefer to exit from scrips that we have stopped tracking as they will not get any update and revision of projections/target.

However, just because we have stopped tracking these ideas does not mean they are bad and will not revive.

Q. How do I invest for the long term?

A. Once you select a scrip, invest in it gradually and continuously. Over a period of time, the company’s financial and market performance will increase your confidence in that idea. As your confidence increases, you can increase your investment even at higher rates. In the process of long-term investment, targets have no place. Selling is normally resorted to only if there is permanent change in fundamentals and not just because targets have been reached.

Telefolio Gold keeps all the ideas recommended by us in the Full List to help you keep track of even those companies whose targets have been reached or which we have stopped tracking.

Notably, Telefolio Gold’s fundamental stand and target normally consider only the next one-two years’ prospects. Hence, long-term investors can ignore them. To help long-term investors identify scrips that they can hold on for many years, we give investment horizon as ‘Long’. So ideas that have long horizon are suitable for long-term investments even beyond the targets and for an extended period of time. Ideas where company risk is low are also suitable for longer-term investments.


Q. How do I interpret Fundamental Stand?

A. Our Fundamental Stand remains Positive (P) if the company can grow earnings more or less on expected lines over the next few quarters and there is no negative change in other relevant fundamental parameters such as promoters, business model, and government policies. Normally, investors who want to invest for the longer term and do not want to resort to profit bookings on targets can continue to hold the scrip till Fundamental Stand remains Positive.

Our Fundamental Stand becomes Neutral (U) if we are not sure about the earnings trajectory of the company over the next few quarters or any new development has created confusion that needs time to resolve. Normally, avoid further investment in such scrips. You can even reduce holding in the scrip.

Our Fundamental Stand becomes Negative (N) if we expect the company to report fall in earnings, earnings are far below our expectations or there is some other negative development. Normally, you may like to exit from such scrips.

Our Fundamental Stand becomes Stopped Tracking (ST) if we stop tracking the scrip. Most investors will prefer to exit from scrips not being tracked as they will not get any update and revision of projections/target.

Notably our Fundamental Stand focuses on the next few quarters and not on the long term. Depending on developments or changes in expectations, Fundamental Stand can change over a period of time.

Q. How do I interpret company risk indicator?

A. We consider the company’s financial leverage (higher the debt, higher the risk), business model (stable, scalable, predictable or risky, unpredictable, fluid), nature of business (business like real estate and commodity are relatively risky), promoters’ track record (about corporate governance, distribution, business decisions, vision ), volatility in quarterly and annual results, dependence on government policies, dependence on climatic conditions and such other factors to arrive at the overall company risk for each idea.

Ideas with high company risk are suitable for aggressive investors seeking higher returns for their capacity and willingness to take higher risks.

Ideas with low company risk are suitable for conservative investors who want to limit risks.

Performance and scrip prices of companies with higher risk are more volatile compared to those with lower risk and investors should be prepared to accept this risk before investing in such scrips.

One can reduce company risk by having a diversified portfolio because if one idea flops, another idea may sparkle. So the overall portfolio does not suffer heavily.



Q. How do I focus on my selected scrips?

A. It is always better to gradually invest in a limited number of ideas.

You can select the idea for your investment and monitoring from any of the lists by clicking Add button. Your selection will be displayed under Ideas You Liked section.

Your ultimate goal will be to like ideas that the market will like later. Your success in predicting what the market will like will determine your returns.


Q. How do I study the idea in detail?

A. Subscribers are requested to peruse all data and information given for each idea and use their judgment and experience before investing.

Click the company name in any of the lists to open the company section, which gives many financial, operational and market-related data, news, information and views on that company in one place.

The main investment theme (Idea at a Glance), research report and any subsequent research update are also available in this section. You can study all these details as per your convenience and make your own judgment.

 

Q. How do I interpret market risk indicator?

A. Market risk is basically due to stock market conditions. If market indices (like Nifty and the Sensex) fall sharply, the value of the scrips held normally goes down and vice versa. However, some scrips are more tuned to fluctuations in stock indices than others. These are called high beta stocks. Higher is the beta, higher will be the fluctuation in the scrip due to fluctuation in the stock indices.

We are following the following benchmark:

If latest
one-year
beta                        Market Risk
---------                 -------------
<0.8                              Low
0.81-1.2                         Medium
> 1.2                             High

We normally update liquidity risk daily.

Aggressive investors can invest in scrips with higher market risk due to their capacity and willingness to take higher risks.

Conservative investors normally avoid scrips with higher market risk as they are not comfortable with too much fluctuation in the price of scrips they hold.

In upward trending market and bull phases, scrips with higher market risk tend to do well as they gather momentum quickly. But such scrips do fall disproportionately in a downward trending market and bear phases. It is necessary to understand this fact to avoid getting carried away in bull phases and panicking in bear phases.

Q. How do I interpret liquidity risk indicator?

A. Liquidity risk emanates from poor trading volume. If scrips are illiquid, it’s difficult for investors to buy as well as sell at prevailing market rates.

We follow the following benchmark to decide about liquidity risk.

If average daily traded
value (BSE+NSE) during
latest 3-months                   Liquidity Risk
-------------------------     ------------
<= Rs 50 lakh                          High
>50 lakh but <= 10 crore           Medium
> Rs 10 crore                          Low

In many mid-cap/small-cap scrips, trading volume is low at lower market rates but the volume tends to go up when the market rate goes up. At higher levels, the liquidity risk often comes down. We normally update liquidity risk daily.

Liquidity risk is also a function of investors’ size of funds. For relatively small investors, liquidity may not be an issue even in relatively illiquid counters as the value of investment is small. However, for large investors it may not make sense to invest in illiquid counters as he may not get enough number of shares to invest.

Illiquid scrips are normally treated as risky as it may not be possible for investors to exit from that scrip if the idea flops. However, multi-baggers are often discovered from illiquid scrips as they are least researched.


Q. How do I use targets?

A. Target prices for each idea are conservative considering various factors. Normally, expected developments over a year or two are considered and targets expected to be realized over one year. The basis for the target is given in the initial research report and change in target is explained in research updates.

We do not start with high targets but gradually increase/decrease them as the time passes and performance and confidence improves/reduces and market trends fluctuate. Target are basically given to give you and idea of potential updside within a year or so at a particular point of time. However our intention is to keep revising the target gradually to hold the scrip for as long as possible.

A company’s performance and a scrip’s movement in the market are influenced by several predictable as well as unpredictable factors. Many developments are often not known to us. So targets are at best the result of our subjective judgment of possible upside potential arrived on the basis of factors known to us and predictable at that point of time.

If market likes an idea, it often rerates the scrip substantially and the scrip price moves far beyond the target. However, if the market does not like the idea, the target remains unachieved for an extended period of time.

We will try our best to update the target at least once in a quarter, taking into account all the relevant factors known to us and predictable at that point of time. However, it is not possible that our target revision will keep track of all the relevant factors at all the time.

It may be noted that targets are moving figures and will move with the times in either direction. Moreover, the market need not respect the targets set by us. Ultimately, the stock price will go up and down depending on how far the market likes/dislikes the idea or the overall market trend, depending on the prevailing greed and fear levels.

The target price should normally be considered as the price till which investors need not book profit unless they expect the market trend to reverse in a major way. Moreover, discretion and a gradual approach should be used in profit booking after the scrip crosses the target.

Q. Why targets are normally revised only on quarterly basis?

A. It is neither practical nor necessary to track and evaluate each and every positive/negative development and revise the target frequently. Targets are arrived at after a thorough review of all relevant factors. Such a review cannot be done frequently. Moreover, all developments are not known to us or take time to be known to us. Analyzing and understanding the implications also take time. It is often better to avoid knee-jerk reactions. Hence, we normally review targets on quarterly basis.

Q. How do I interpret Investment Term?

A. If Investment Term for the Idea is given as Long (L), the idea is for the long term (say, for an extended period of time much beyond one year). Targets and profit booking play less important roles in such ideas.

If Investment Term for the Idea is given as Medium (M), the idea is for one to three years. If short term does not play out well, you can extend your stay in the scrip for some more time.

If Investment Term for the Idea is given as Short (S), the idea is considered good for a couple of quarters. Normally, longer-term investment should be avoided in such Ideas. Targets and exit strategy play an important role in such scrips. Regular profit booking in such ideas is advisable. It may be better to exit from such scrips if the Idea is not developing up to expectation.

Q. Which scrips require my attention?

A. It may be prudent for you to monitor corporate actions in your scrips so that you can track your dividend, rights, bonus, and share splits. We list all the pending corporate actions in our ideas under Ideas That Require Your Attention section.

Q. How do I monitor news and developments?

A.
Ideas Making News section lists all ideas where there are news, results, AGM/Analyst Meet/ conference call report. It is better to read these reports to keep updated.

Q. Where can I view the Ideas' moves today?

A.
How The Ideas Are Faring Today section gives the day’s top price gainers, worst price losers and top volume gainers. Movement in leading indices is also displayed.

Top volume busters are selected based on the following logic:-
Market Start to 11 AM Current volume > 1 time 30-day average volume (no of shares traded)
11 AM to 1 PM Current volume > 2 times 30-day average volume (no of shares traded)
After 1 PM Current volume > 3 times 30-day average volume (no of shares traded).
You can also see Current Price, Var. (%) from the previous day (PD) price, Var. (%) from initial price (IP), Sensex Var. (%) from IP date, High since Initial Recommendation, and Low since Initial Recommendation in lists under most of the sections of Telefolio Gold.

Q. What are Non-monitored Ideas?

A.
Non-monitored Ideas do not give targets nor are updated. These are not followed by us. Though fundamentally sound, we are not in a position to follow or monitor them. These are given as a separate list and do not appear in any other lists like Full List or Ideas You Can Explore. Subscribers are expected to make their own call on investing, holding and selling of these ideas based on data and info given for each idea. These should be treated as extra ideas for those who want more. Those who do not want to track companies on their own and want fewer ideas can ignore this list.

The list displays scrips in the descending order of date of recommendation.

Q. Can I change the order in which any list is displayed?

A.You can sort any list in the ascending order of any column by clicking on the relevant column heading. Clicking the same column heading second time will sort the list in the descending order of the column selected.
 

Q. I am still confused about how to use Telefolio Gold?

A. DDo not worry. It may take time for you to adjust. Keep reading this FAQ, using Telefolio Gold website, and keep investing. Over a period of time, you will find that you have developed an investment strategy that’s just right for you. No one except you can find the best investment strategy for yourself.

What are the terms and conditions of Telefolio Gold?

It is understood and accepted that:

  • Only authorized users who have paid for this service should login to http://www.telefoliogold.com.

  • Telefolio Gold is available only through website http://www.telefoliogold.com and not through phone, email or SMS. One should have good Internet access and be Internet-friendly to make the best use of Telefolio Gold.

  • No data, information, reports, views, recommendations etc given on http://www.telefoliogold.com should be downloaded, copied, shared or distributed in any form with others.

  • This service does not guarantee any returns.

  • This is a research service common for all subscribers of Telefolio Gold and does not involve any personal or customized advice.

  • Capital Market does not guarantee access to Telefolio Gold website if there is any problem in internet, network, server or any technical issues.

  • Telefolio Gold should be used only for personal use. It should not be shared in any form with others. We reserve the right to discontinue the subscription without any refund if any kind of sharing is found.

  • Telefolio Gold is only for individual clients for their personal use. Brokers, portfolio managers, advisors, corporates etc should not subscribe. If they subscribe, we reserve the right to discontinue their subscription without any refund.

  • Investment / disinvestment decisions are entirely at the discretion of the subscribers and the entire gains/losses are theirs.

  •  The recommendation is strictly for investment backed by funds and not for speculative short-term trading. We expect only long-term investors to join this service.

  • Though all care is taken in arriving at recommendations, the equity shares may rise or fall in a manner not foreseen. Hence Capital Market or any of its employees will not be liable for any loss suffered.

  • We will be subject only to Mumbai jurisdiction


Q. I still have doubt/ facing some problem

A. Email us at info@telefoliogold.com explaining the doubt/problem/error and we will get back to you.

 

Q. What are the charges?

A. Capita Telefolio Gold is available at Rs 50,000* for a one-year subscription.
Subscription rate is Rs 80,000* for two years and Rs 1,00,000* for three years.

* - Inclusive of GST @18%.