Global Liquidity

Liquidity could be the big challenge in the coming year…

In a world that is obsessed with a plethora of problems ranging from slow growth to weak inflation to a highly intransigent North Korea, there is a hidden problem that could be lurking in the corners. In the year 2018, global liquidity could be the big story to watch out for.

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Governance ahoy!

Kotak Committee proposes big changes to corporate governance…

The high powered Uday Kotak Committee submitted its report on corporate governance framework to SEBI during the week. The committee has proposed some very far-reaching changes to the existing corporate governance framework. It could have major implications for boards, auditors and for shareholders at large. Continue reading

Trading Rule – “Don’t deploy all your money in one go”…

Is this not what we do more often than not? When you have a corpus to invest, you tend to deploy the money in the market immediately. But, there is merit in a phased approach. The phased approach allows you to get a better bargain in stocks, especially when they are volatile. Secondly, by deploying all the money in one shot you are stuck in the zero liquidity syndromes. In the event of any fund requirement you may end up undertaking a distress sale of your shares. Always invest gradually and in a phased manner! Continue reading

Trading Rule – “At times it pays to be a contrarian”…

What exactly do we mean by a contrarian? As the name suggests, it refers to an investor who has the gumption to go against the trend. It is hard to be a contrarian when you are a trader and trading with strict stop losses. However, for investors a contrarian approach to investing can really work if backed up with deep research. Buying infosys in 1995 or eicher motors in 2009 were highly contrarian calls. But they really paid off! Continue reading

Classifying MFs

SEBI moves in to streamline Mutual Fund schemes…

The SEBI move to streamline mutual fund schemes in India was always on the anvil. Over the last few months the regulator had expressed concerns over the plethora of schemes in the market and the unnecessary duplication of schemes among the mutual funds. SEBI has finally moved in to take the first step to streamline the mutual fund industry. Here is how… Continue reading

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