Posted at 7:34 PM , on September 1, 2015
Open any mutual fund website and you can find a lot of data about how the particular fund or scheme of the AMC has outperformed the market. There could be an analysis of how the particular fund has beaten the market index. There could also be a comparison between a particular fund and the other funds in the category to highlight the superiority of a particular fund. There could be an elegant table or chart which outlines how that particular fund could have created wealth for an investor over a period of time. As a smart investor, it is your job to conduct 6 basic tests before deciding on buying a mutual fund.
Posted at 7:15 PM , on August 31, 2015
September focus will be on Janet Yellen
In the last Fed meet, they did nothing on interest rates and the question is what has changed in the last 2 months. Frankly, but for an additional bout of volatility in markets, nothing much has changed. US growth continues to flatter with marginal positive surprises. Inflation continues to stay low due to cheap crude and cheaper commodities. The US continues to attract capital flows from risk-off trade, which has been the investment theme over the last 2 months. So what does all this mean for the Fed decision on rates in September?
Posted at 7:13 PM , on August 31, 2015
Why promoter’s pledged shares must be watched closely
As India celebrates a plethora of good news like low inflation, falling deficits and corporate profitability; there is a silent problem that is lurking in the shadows. Promoters pledging shares with financers to raise money for their business is nothing new. The problem arises in two basket cases. Firstly, when promoters have pledged almost their entire holdings with the financers! Secondly, when the pledged shares belong to a company that is susceptible to bouts of volatility! Unfortunately, both these cases are visible in abundance in India currently.
Posted at 7:10 PM , on August 31, 2015
Why Indian markets cannot be an isolated beneficiary
The 24th of August may have had traces of “Black Monday”, but it was far more benign compared to 1987. However, the impact was much bigger in terms of its seamless spread and the carnage across emerging markets. Over the last few days there have been consistent arguments on how India can outperform in these difficult global conditions. That argument may be flawed! Here is why…
Posted at 7:22 PM , on August 28, 2015
A successful self trader – Rule # 22
Averaging is the cardinal sin of investing
Let me begin with the caveat that, averaging your position is not theoretically wrong. Just that it does not work in practice. You bought a great stock, the stock corrected; you averaged and lost money. You averaged your short position and again ended up with losses. Why does averaging not work in reality? Are there situations where averaging makes sense?