A word long-term investing is so vogue, particularly when the markets are plummeting, any one who invested huge amount of money just few months before the markets started going down will have a tough time looking at the long-term prospects and returns in the market. Every day, when we hear news about china economy slowing down and crude oil price hitting new low, it is extremely difficult to stay calm.
In this context, It is important to distinguish between trader and investor. when a person is buying a stock expecting to sell with in few weeks or months and make a decent profits, Continue reading →
According to World bank data, Indian economy crossed $2 Trillion in 2014. But Prime Minister Narendra Modi in his recent US trip said, ‘We are $8 Trillion economy today my dream for India is making India a $20 Trillion (roughly Rs. 13,23,27,000 crores) economy’.Astonished?
When I heard this statement, i first checked the year on my mobile and computer, both are showing 2015. I thought may be I missed 10 to 15 years over night . Even at a better than expectedGDPgrowth rate of 8 to 10%, it will take India at least 10 years to become a $8 trillion economy. so what is the catch? Is it an Oxymoron?
You will be surprised to know that both statements are accurate, to know how, you need to understand the term Purchasing Power parity.Continue reading →
If you do not want to take the risk of dabbling in individual stocks and firmly believe that equity investments is one sure way of beating inflation and building wealth for long-term, Equity Mutual funds which are managed by professional investors is the right choice for you.
What is Equity Mutual fund?
Equity Mutual Funds typically have more than 70% of the fund invested in stocks, most of them hold any where between 30 to 50 stocks. There are several types of Equity Mutual Funds, ranging from large cap to mid cap/small cap and sector based funds. It is managed by professionals who has expertise in assessing the balance sheets and access to market research in related areas. Mutual fund managers also follow various checks and balances including not any individual stocks exceeding say X% of portfolio and buying stocks across sectors, so that performance is well-balanced and risk is minimized.
Which fund should I buy?
While there are hundreds of funds which invest in stocks, fund choice is entirely dependent on the risk profile and time period for which you are looking to invest. Typically Continue reading →
As a famous epithet from a famous Bollywood movie goes ‘Picture abhi baaki hai mere dost!’‘
With all the news surrounding slowing global economy, particularly China slow down, why India remains a rare bright spot in the world economy, doing better than trouble spots such as Brazil, Russia and South Africa? With growing youth segment, rising incomes which is leading to increase in purchasing power, higher brand consciousness, growing urbanization, rising internet penetration and easily available credit, Continue reading →
In last one year India Rupee depreciated 10% against US Dollar, from 60.38 on Sept 9th 2014 to 66.68 on Sept 8th 2015. This might sound like a big fall, particularly If you consider the long-term average of around 5%(Ref Table 1), Rupee depreciated more than double the average in last one year.
A mere statement by US Fed about ending its quantitative easing programme, sent the rupee to all time low of 68.8 in Aug 2013. This event also had a similar impact across the world currencies. Continue reading →