Google finance portfolio is a great tool for individual investors. In India we did not had such excellent portfolio manager. Google Finance not only builds portfolio but also works as stock screener. Portfolio management is very important for individual investors. Specific portfolio composition is required to diversify against market volatility.
Individuals whose portfolio consists of direct stocks and ETF, will need Google finance portfolio tool more. Individual investors whose knowledge is limited, investing in equity through mutual fund route is better. But in case one decides to buy direct stocks then tool like Google Finance Portfolio will be required.
What Google Finance India provides us is 2 most valuable products, 1) Portfolio tracker & 2) Stock screener. Portfolio tracker can be used to ‘view stocks’ & ‘track performance’ of stocks which one holds. One can include several type of securities in Google Finance portfolio. Securities like stocks, ETF & mutual funds can included in portfolio for tracking. But in India, mutual funds are not supported as on today. One can also add S&P BSE SENSEX Index in Google finance portfolio. This helps investor to compare performance of their holdings with respect to SENSEX or NIFTY.
Add Transactions Data
All type of share transaction can be recorded in Google Finance Portfolio software. Buy, Sell, Buy to Cover & Sell Short are type of transaction we can record in Google Finance. We can also use Google Finance to create a watchlist. Suppose one has bought any shares, but would like to watch its performance.
In this case one can put zero value in “Shares” field. Other values that must be included to create a portfolio tracker is ‘cost per share’ & ‘commission’ that one has to bear to buy/sell stocks.
Google finance India allows one to track overall stock portfolio. When investors buy stocks of companies, he also like to be abreast with its latest news. Google finance brings forth latest company-specific news right inside the portfolio. Google finance India is perhaps one of its kind portfolio tracker and financial portal available for Indian investors. The portfolio itself is customizable, so investors can see tailor-made portfolio-view of ones investment portfolio. Google finance India also competes with giants like moneycontrol, Yahoo Finance etc. But google finance has been my favorite for several reasons. One big reason is its stock-screener feature. Another best part of Google finance India is it does not bombard me with advertisements popping up right on my face.
Google finance India services are completely free. One need to just create a Gmail account. Person who already has Gmail account needs to do nothing. They can simply login into Google finance India (using Gmail id and password). One a person in inside Google finance, creating stock portfolio is only clicks away. In this article we will see how to use Google finance India to create stocks portfolio. In United States of America, Google finance support mutual funds as well. So investors can add their mutual fund holdings as well in Google finance portfolio. But in India Google finance does not support Mutual Funds at the moment.
Google Finance Portfolio Snapshot
In order to create portfolio for yourself you must have a Google Account Login. Once a person logs in Google finance the next step will be to create portfolio. The portfolio can be created by clicking the portfolio tab:
After clicking on the portfolio tab, the next step is to name the portfolio. Once the name in entered and clicked OK, portfolio is created. But this portfolio will be empty initially. Individual stocks that one has bought and sold needs to be manually entered. Adding stocks to Google finance portfolio is also easy. By clicking on the link “Add transaction data” one can enter individual shares data. Once Add transaction data link is clicked, next is to enter details as highlighted here:
After entering all the transactions, a typical Google finance portfolio will look like this. In my example portfolio we can see different Indian stocks are included. The Portfolio snapshot that we are seeing is in overview mode. In this mode we can see stocks current market price, market capitalization and days price volatility. There is another mode which is called fundamental mode. In fundamental mode we can clearly see how stock price has performed in last 52 weeks. We can also see stocks Earning Per Share (EPS) and Price Earning Ratio (PE).
In the ‘overview tab’ of Google finance, one can get following information about stocks portfolio: 1) Current Market Price (Last Price). 2) Percentage change in market price compared to previous day price. 3) Current market capitalization of stocks. 4) Volume. 5) Market Price (Day’s Low & High).
In the ‘fundamental tab’ of Google finance, companies financial basics are highlighted. Parameters like EPS & P/E ratio are available. Investors could compare today’s price with 52Weeks high & Low price. This makes decision making (Buy, hold or sell) easier. Market capitalization figures are also available.
Comparing performance of a portfolio with a benchmark is important
Comparison with bench mark is important as it gives good insights about portfolio performance. The comparison is easy. One needs not open excel sheet and plot curves. Instead we can use Google finance portfolio tool to track performance of portfolio. After we have entered all your shares, mutual funds, ETF’s in Google finance we can track performance. At the bottom of the table in Google finance portfolio tool we can performance curves. This curve is generated automatically. That performance curve you can compare with a reference with any standard benchmark say SENSEX.
As an investors if your investment philosophy is to buy only large-cap-blue-chip stocks then useful benchmark will be BSE Top 200 index. If investment philosophy is to buy small & mid cap stocks then benchmark like NIFTY MIDCAP 50 is good. I personally track performance of my portfolio with respect to BSE Sensex. You can see that more or less my personal portfolio has not underperformed compared to BSE Sensex. Even though in last 4 weeks BSE Sensex has broken all previous records, my personal portfolio performance almost matches it.
Direct investing is shares needs portfolio tracking. Google finance portfolio tool is one of the free online tool available. If one is investing in equity thorough funds then portfolio tracking is not essential. But direct share purchases demands performance tracking w.r.t a benchmark. I will suggest, even if one is investing only though mutual funds etc still tracking of performance only adds to investors know-how. And moreover if Google Finance is offering a free tool why not use it.
(2) Google Finance > News
This is one of my most used tool of Google Finance India. I have created a watchlist portfolio for myself. Related to all stocks in my portfolio, specific news gets filtered and available for my reading. This makes my job very easy. I need not search the whole world’s news to find the relevant ones. I am not such a news guy. But when I see information related to my specific stocks it automatically becomes interesting. Google finance has really helped me to improve my ‘circle of competence’.
(3) Google Finance India > Stock Screener
This is the real USP of Google Finance. I have not seen a better stock screener than Google Finance till date. I have used few like that of Reuters, Axis Direct, etc. But none can match the usefulness of Google Finance. Axis direct is good but its not free. The volume of information that is provided by Google Finance India for free is great. Lets see the parameters based on which we can screen stock in Google finance.
When we click the add criteria we can include other useful stock screening criteria as well. Some criteria that I used very often are as following:
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Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyze all securities before investing in one.