“Catch them young!”. An evergreen slogan that applies to every aspect of our lives. In investing too, it makes a lot of sense to catch companies when they are very young and to stay the course with them throughout their extended growth phase. To catch a company young, the best…
When the markets stay irrational longer than anyone predicted, it poses a challenge to the investors seeking sanity in the markets. They are at a loss on what to do with existing holdings, where to invest incremental savings, and how to manage asset allocation. Selling one expensive asset class and…
When it comes to investing, we’re all faced with a myriad of choices – real estate, fixed deposits, mutual funds, direct equity, and advice from various sources like friends, relatives, colleagues, and social media financial influencers. Lately, there’s been a buzz about index funds, but is it really the one-stop…
Changing asset allocation is a sure shot way of ensuring risk mitigation in an investor’s portfolio. But if you are already owning a portfolio of equity that you built assiduously, you are posed with a peculiar problem. Should you sell your equity portfolio down as part of your risk mitigation?…
APT TIME FOR MULTI-ASSET STRATEGY 2023 was a rollercoaster ride! Markets rallied, tight monetary policies left many feeling the pinch, while a global slowdown added to the uncertainty. It was a year that kept everyone on their toes and the markets buoyant! A month past the new year, the world…
All investors seem to agree that equity valuations are not to their liking. They would prefer to buy when valuations are cheaper. Yet, they don’t want to stay away and are willing to compromise valuations to participate. More interestingly, they seem to be avoiding debt exactly when it is a…
The interim budget was hardly an event. There was hardly much given away as freebies, concessions or incentives to voters on election eve. On the policy and taxation front, the budget assured continuity. Beyond giving the assurance of continuing to work for the poor, farmers, women and youth, the budget…
It’s time we understood the mechanics of fixed-income markets. How do the fixed-income markets work? What makes bond investors tick? Why is everyone banking on an interest rate cut? And will rate cuts finally give investors what they want? While everyone believes that interest rates influence investors, it’s yields that…
Investor behaviour in SIP programs is a good indicator of behaviour, expectations, and conviction. If you look at where investors would start a SIP without the slightest hesitation, you will be surprised by how much that choice is driven by recency bias. While every investor knows that applying recency bias…
The rising froth in the PSU space only showcases the extremities of investment behaviour. We are prone to swing to the other extreme when we remain too long at one extreme. This is exactly what we see in the PSU trade. Cut to 2001. We were just recovering from the…