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Tag Archive: EQUITIES


Which Fund to Choose?

Mutual fund is still an untapped market in India, Although India has more than 50 AMC (Asset Management blogCompany) operating with more than 20,000 odd schemes.

When it comes to investing I always say that Equities have out-performed other investment asset classes over the long-term in India as well as globally. With growing maturity, retail Investors in India have begun to realize this and also take into stride the short-term volatility of this asset class. Better regulatory environment and improved corporate governance have also helped bring more investors to Equities.

Equity investing requires a lot more dedicated time, patience, skill and knowledge while people prefer to invest Continue reading

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I love this topic as I always say we love to forecast things and we all are forecasters,blog

When we think about changing jobs, getting married, buying a home, making an investment, launching a product or retiring, we decide based on how we expect the future will unfold.

Whenever the markets rise sharply the probability of forecasting to end the Bull Run increases sharply and vice versa in case of Bear markets.

Why people tend to forecast market so much? Don’t they enjoy the present?

Well those are behavioural questions and difficult to answer. But definitely people enjoy forecasting things.

Will the Sensex reach 30,000 or not is the question of the moment, and there are various views on it. Continue reading

History may rhyme, it doesn’t repeat itself’ (Twain). Or that, “the only thing that is constant is change” (Heraclitus). blogThese two famous quotes apply to the financial markets as much as anything.

The way the mid and small caps in the Indian markets are trading gets to sense the equity markets are either at the start of a bull run breaking out higher or are on the verge of a break down lower.

Just correlate with layers 2007 and early 2008

  • Sub Prime issue was lingering in the mouths of traders for three years before the pain struck. Now, Greece is lingering for five years. Markets did not price in the Sub Prime issue. Now markets have under-priced Greece exit.
  • When the major markets peaked and languishing in ranges we have seen for about three months a surge in Indian equities (along with mid and small peaking to astronomical levels) then eventually Indian equities crashed.

 

Retail investors are helping markets more by staying out than by investing in equities. So from a purely selfish point blogof view, we (current equity market participants) do not mind if you stay away from equities. Park your money in low-interest bearing savings accounts and this will help banks raise cheap funds.

Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times and 5.9 times respectively since December 2008.

Also, remember to pay all your EMI installments on time so that retail loans made by private banks do not get into trouble and we can continue do well owing their stocks. Continue reading

Buying and selling in the market are the most important decisions the investors make. Maximum time the decisionsblog are wrong and you end up paying the market fee for equity investment learning.  In the past 36 years Indian market gave positive returns for 24 years and negative returns for 12 years.

Occasionally I do repeat my posts as some ideas from Mr Lynch’s book that I try to follow most of the time, they are old but they have major significance today too :- Continue reading

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