101 question and answers - Basics Learned from Tradingqna

General
21

Leading etf iNAV pages

use case : iNAV of an ETF on Kite market watch some time not updated regularly

  1. Zerodha - Real-time iNAV of ETFs by Zerodha Fund House
  2. Nippon - ETF - Exchange Traded Fund Services in India | Nippon India ETF
  3. Mirae - Transact in ETF
  4. DSP - Understanding iNAV: ETF Price, Value, and Finance Overview
  5. Motilal - https://www.motilaloswalmf.com/etf
  6. SBI - iNAV - ETF Portal
  7. UTI - UTI Mutual Fund Invest Online
  8. Other Etf check NSE website - https://www.nseindia.com/market-data/exchange-traded-funds-etf

Discussion : iNAV of Exchange Traded Funds

22

Indian Hospital sector articles

Three of India’s major hospital chains — Max Healthcare, Narayana Health, and Rainbow Children’s Medicare — and how they performed last quarter. All of them go by different playbooks, making them a good sample set to understand the broader hospital sector.

refer India's hospitals are avoiding the expansion trap

23

InvITs falling below PB value

Here are the key points and takeaways from the discussion on “InvITs falling below PB value” from TradingQ&A (may include reference from other sources too)

Discussion : InvITs falling below PB Value

:pushpin: Key Insights

  1. INVITs trade below book value (P/B < 1)
    INVITs often trade below 1× book value due to the depreciating nature of their underlying assets—like transmission lines or roads—whose value gradually erodes and often approaches zero at the end of their tenure ([tradingqna.com][1]).

  2. High yield is cash flow, not pure profit
    Yields of ~10–15% in INVITs largely consist of both cash flow and return of capital. Because asset value declines over time, much of the yield is effectively drawing down on the initial capital ([forum.valuepickr.com][2]).

  3. INVITs ≠ REITs

    • REIT assets (land and buildings) often appreciate, partly due to rental escalations and development potential.
    • INVIT contracts (e.g., transmission PPAs) tend to have diminishing cash flows, and the assets themselves depreciate ([tradingqna.com][1]).

  4. End-of-life asset value issue
    At expiry—typically 25–30 years—the value of assets may drop to nearly zero, with little residual salvage. Hence, returns are front-loaded via distributions, rather than via capital appreciation ([tradingqna.com][1]).

  5. Growth requires either debt or equity issuance
    To sustain dividends or grow, INVITs must either:

    • Take on new debt, or
    • Issue fresh equity, which can dilute existing investors ([tradingqna.com][1]).

  6. Structural differences among INVITs matter

    • Some INVITs have BOOM (Build-Own-Operate-Maintain) structures with perpetual ownership potential.
    • Others follow BOOT (Build-Own-Operate-Transfer), where assets are handed over at the end of the contract ([forum.valuepickr.com][3], [tradingqna.com][1]).
    • Asset lifespan can vary—e.g., transmission towers may last 50–150 years—so real-world depreciation might be slower .

  7. Dividend sustainability hinges on new asset additions
    Without fresh acquisition, INVITs are essentially streaming out principal. Therefore, consistent income and yield depend on either acquiring new revenue-generating assets or prudently managing debt ([tradingqna.com][1]).

:brain: Takeaways

  • INVITs are primarily cash-flow instruments, not capital-appreciation plays. You receive your money back over time via distributions, not necessarily at maturity.

  • A P/B ratio below 1 is normative, given asset depreciation—don’t assume undervaluation or “bargains” purely based on PB.

  • High dividend yield = capital return. Effective yield drops over time if you don’t reinvest or add assets, since part of the payment is drawing down your own investment.

  • Comparisons to REITs can be misleading: REITs often ride on appreciating land values and escalating cash flows, unlike INVITs managing depreciating infrastructure assets.

  • Check the INVIT’s strategy:

    • Are they acquiring new assets?
    • Using debt responsibly?
    • Aiming for BOOM vs. BOOT assets?
    • What’s their asset life profile?

:white_check_mark: Investment Checklist for INVITs

Factor Why It Matters
P/B Ratio A low P/B is expected—focus on yield source
Contract type BOOM (perpetual?) vs BOOT (expiry risk)
Asset lifespan Longer lives = slower depreciation
Growth strategy Debt or equity? Acquisition pipeline?
Yield composition Principal vs interest = sustainability

Bottom line:
INVITs are structured to provide consistent cash flows over the asset’s useful life, not to deliver capital gains. A P/B under 1 reflects this design, not mispricing. To evaluate them, dig into their contract structure, asset longevity, and growth strategy. With the right expectations and due diligence, they can be a stable, income-generating asset—but they behave very differently from REITs or equity investments.

References
[1]: InvITs falling below PB Value “InvITs falling below PB Value - Fundamental Analysis - Trading Q&A”
[2]: PGINVIT impairment of investments in subsidiaries and book value - Q&A: Questions & Answers - ValuePickr Forum “PGINVIT impairment of investments in subsidiaries and book value”
[3]: Investing Basics - Feel free to ask the most basic questions - Page 44 - Stock Analysis & Valuation - ValuePickr Forum “Investing Basics - Feel free to ask the most basic questions”

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24

Gold Hedge or investment

Gold is often considered a safe haven when equities fall. Here’s why gold tends to perform well during stock market downturns:

:yellow_circle: 1. Gold is a “store of value”

  • Gold has intrinsic value and has been used as money or wealth for thousands of years.
  • Unlike stocks, gold doesn’t represent a business that can lose revenue, fail, or go bankrupt.

:chart_with_downwards_trend: 2. Equity falls = fear rises = gold demand rises

  • When stock markets fall, it’s often due to economic uncertainty (recession, war, inflation, etc.).
  • In such times, investors flee to safety, and gold is one of the first assets they turn to.

:currency_exchange: 3. Gold has low correlation with equities

  • Gold and stocks often move in opposite directions.
  • This diversification makes gold a hedge in a balanced portfolio.

:chart: 4. Gold benefits when central banks cut rates or do QE

  • In bear markets, central banks often:

    • Cut interest rates (bad for banks and bonds)
    • Inject liquidity via money printing (quantitative easing)

  • These actions can lead to currency devaluation and inflation → boosting gold prices.

:dollar: 5. Gold is seen as a hedge against currency devaluation

  • If equities fall due to poor economic policy or high inflation, fiat currencies (like INR, USD) may weaken.
  • Gold is priced in those currencies, so when they fall, gold prices rise.

:moneybag: 6. Flight to physical/tangible assets

  • During financial crises, paper assets (stocks, bonds) may seem risky or uncertain.
  • Gold is a real, tangible asset you can hold—this appeals to investors in times of distress.

:bar_chart: Example: COVID-19 Crash (March 2020)

  • Equity markets crashed → Gold initially dipped (liquidity panic) but then surged.
  • In 2020, gold crossed ₹55,000 per 10g in India as investors ran to safety.

:white_check_mark: Summary Table

Reason Impact on Gold
Stock market panic ↑ Gold demand
Inflation ↑ Gold as hedge
Currency weakening ↑ Gold price in INR/USD
Low interest rates ↑ Appeal of gold (no yield needed)
Uncertainty (war, recession) ↑ Safe-haven buying

Discussions

  1. China Gold Fraud - How safe are the Gold ETFs?
  2. India’s Gold Reserves Just Hit a Record High
  3. Gold ETF as non-cash component
  4. New RBI rules around Gold Pledging
  5. Why are SGBs trading below their intrinsic value?
  6. What is gold price Prediction for 2025?
  7. Is gold really the “safe haven” everyone thinks it is?