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Checklists

Run through the right checklist before every decision. If you can’t tick most boxes, wait. Tick boxes here as you go; they reset when you reload, so you can reuse them.

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Stock evaluation checklist

I understand what the company sells and how it makes money.
Revenue has grown consistently for 5+ years.
Profit and EPS have grown consistently, not from one-off items.
Operating cash flow is positive and close to net profit.
Debt is manageable (D/E < 1 for non-financials; interest cover > 3×).
ROE/ROCE are healthy (15%+) and stable.
The company has a moat (brand, cost, network, switching costs, licences).
Promoter holding is stable; pledging is low or nil.
No major red flags: auditor issues, related-party deals, dilution.
Valuation (P/E, P/B, PEG) is reasonable vs history and peers.
I know why I’m buying and what would make me sell.
This position fits my allocation (≤ 10–20% in one stock).

Mutual fund selection checklist

My goal and time horizon are clear.
The fund category matches my horizon and risk level.
Direct plan, Growth option (unless I need advice/payouts).
Consistent top-half performance over 3, 5 and 10 years.
Beats its benchmark TRI over 5+ years (for active funds).
Standard deviation and max drawdown are no worse than peers.
Sharpe/Sortino are above category average.
Expense ratio is at or below category median.
Fund manager has a stable tenure and good record.
Little overlap with funds I already own.
I understand the exit load and tax.

IPO evaluation checklist

I read the RHP sections: Objects, Business, Risk Factors, Financials, Basis for Offer Price, Promoters.
I can explain the business in two sentences.
Revenue and profit have grown steadily for 3 years (no sudden jump).
Operating cash flow is positive.
Debt is manageable after the IPO.
I know how much is fresh issue vs OFS, and why insiders are selling.
Promoters have a clean record and meaningful post-IPO holding.
IPO P/E is reasonable vs listed peers.
I would buy it at this price if it were already listed.
I am ignoring GMP and social-media hype.

Trading risk-management checklist

My emergency fund is separate and untouched.
This trade follows a written setup in my plan.
Entry, stop-loss and target are decided before entering.
Risk:reward is at least 1:2.
Position size limits loss to ≤ 1–2% of capital.
Total open risk across trades is within my limit (e.g. 5%).
I am not using leverage I don’t fully understand.
I am not trading to win back a loss (no revenge trading).
I will stop for the day after my maximum daily loss.
I will record this trade in my journal.

Practise trading with live market prices before you invest real money. All trades use virtual money.

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