Mutual Fund Performance & Trends 2015

How mutual funds have fared in 2015…

The year 2015 has not been too charitable to the equity markets. The Nifty did rally in the early part of the year and crossed the 9000 mark. Post-March, the markets have lost close to 15% and have suffered repeated bouts of volatility. In this entire melee, Indian mutual funds have come out trumps.

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RBI Credit Policy

RBI Governor may hold rates this time around…

As another credit policy approaches on December 01st, the key question is what does it hold? Of course, the key question boils down to whether the RBI will cut repo rates or not. In all likelihood, the RBI may prefer to wait and watch. It will prefer to maintain status quo in this policy and take a fresh view on rates in the next calendar year. There are 4 key reasons why the RBI will not cut repo rates in this policy. Continue reading “RBI Credit Policy”

GST Bill Passage

The government can make it happen; it must make it happen

As the winter session commences, the big question is whether the government will manage to pass the GST Bill in the Upper House. Indian industry needs the bill as it will substantially simplify taxation by subsuming a plethora of taxes. Also it is likely to add 2-2.5% annually to GDP growth. That is huge! Continue reading “GST Bill Passage”

What was the gist of the second quarter results?

The results for the second quarter ended September 2015 is substantially in the public domain and it is time to look at the key indications and messages from the quarterly results. On the positive side, there has been the advantage of cheap oil and low price of commodities. Also falling interest rates and low inflation have worked to the advantage of most industries. But on the negative side, bank credit has been sluggish in its growth. Corporate profits have also been hit by weak rural demand which determines demand for a variety of key industries like banks, automobiles, FMCG etc. Continue reading “What was the gist of the second quarter results?”

Keep a crash shopping list ready

A successful self trader – Rule # 28

Back in 2002, i asked a savvy investor the secret of his success. His answer was enlightening. Keep a crash shopping list ready and be liquid enough to capitalize on the crash. In retrospect, this is so true. We typically find investors who are fully invested at the top and hence are not able to make the best of a crash in the market. That is where you lose out. Keep a shopping list ready and be liquid in a crash. Continue reading “Keep a crash shopping list ready”