Winning the Arguments about Market

It’s simple really. Just change the time horizon so it suits your stance.blog

I’ve seen this play out over everyone’s favorite yellow metal the past few years. Gold is down almost 40% since it peaked in 2011. But it’s still up almost 350% since 2000. Although since 1980, on an inflation-adjusted basis, it’s basically flat. However, since the early-1970s it’s up over 7% per year (or about 3.4% after inflation).

See what I did there? There’s ammunition for both sides of the gold trade to use to their advantage. Continue reading “Winning the Arguments about Market”

Kotak-ING Vysya merger: Synergies

Kotak Bank will buy ING Vysya bank in an all-stock transaction that gives ING Vysya shareholders 725 shares of Kotak blogBank if they own 1000 shares of ING Vysya.

This will create a larger bank in assets; the new Kotak bank will be about 50% larger. However, the price increase in Kotak’s shares (to Rs. 1200) might have fully factored in the growth increase, without allowing for any issues in the merger going forward.

All ING Vysya branches and employees will become Kotak branches and employees” after the deal is completed,” the banks said in a statement yesterday. “Congratulations @udaykotak on a brilliant merger move. The enormous synergies are obvious,” industrialist Anand Mahindra tweeted after the deal was announced.  Continue reading “Kotak-ING Vysya merger: Synergies”

Higher the risk Higher the return

The risk/return trade-off could easily be called the “ability-to-sleep-at-night test.” While some people can handle blogthe equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important.

In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some or even all of our original investment. Continue reading “Higher the risk Higher the return”

How to select a Mutual Fund:

The most generic question that I have found among the first time investors is how to select the Mutual fund, which fund to bloginvest . Here are some tips that might help you .I do not write much on personal finance, and I doubt how many investors have the visibility on these 7 factors to invest in the mutual funds.

Seven Factors To Consider:

  1. Management Stability: If you find a great manager, hang on to them. Top managers usually continue to perform better in up and down markets, because they have the stability and experience to stay focused on their objective.Let them work for you and enjoy the stability.
  2. Management Participation: The management team of a great mutual fund usually invests heavily in their own fund. Continue reading “How to select a Mutual Fund:”

Alternative Investments

Alternative investments is not a new concept but seems to be gaining momentum, I did a story in back in 2012 under the CDSDEFAULT-1-1heading ART TREATED AS AN ALTERNATIVE INVESTMENT .Would like to evolve on those terms, Let’s face it : The financial crisis & the European crisis that seemed to mark a turning point in the spectacular growth of alternative investments, such as managed investments in hedge funds, private equity, real estate, commodities, and infrastructure. Poor performance and liquidity problems led to massive redemption in several categories. By now, however, those problems have subsided, and alternatives are back on track.

Continue reading “Alternative Investments”