Posted at 12:05 PM , on September 8, 2015
The sharp correction in the month of August and the first week of September had a deeper sub-plot written into it. At a time when the FPIs were selling and exiting the Indian market in droves, domestic mutual funds and insurance companies were buying aggressively. Let us looking at some statistics! During the month of August 2015, FPI net selling was to the tune of Rs.19,500 crore; predominantly in equities and only marginally in debt. During the same month, domestic financial institutions were net buyers in equities to the tune of Rs.16,500 crore. If you consider from the beginning of the calendar year, the disparity between FPIs and DFIs is a lot more glaring. FPIs were net buyers to the tune of $1 billion; largely due to the frenetic buying around the Union Budget. During the same period, DFIs were net buyers to the tune of a whopping $7 billion. One can imagine how deep the correction would have been on Indian bourses had the domestic funds not supported the market. There are a few interesting areas of discussion that emerge.
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 2:50 PM , on April 15, 2015
A successful self trader – Rule # 9
Before getting into any trading or investment position, it makes sense to check out what the men in the know are doing. Try to check out what the directors and promoters of the company are buying. Also check if global institutions and mutual funds are trying to go aggressive on either side. Track the bulk deal and block deal patterns and the ownership changes to pick up useful signals before investing.
What are informed investors doing?
Informed traders give you the best clues about any stock. Back in 2009, before Satyam owned up to its massive accounting fraud, a group of very large institutions had been silently offloading their long positions in the stock. Not only some of the men in the know exited the stock, but many also made a fortune by short selling the stock just before its disastrous fall from grace. Continue reading