Diversification is a topic frequently discussed, especially in the world of mutual funds. Rightly so, because people who invest in mutual funds may be newcomers and want some safety for the funds they commit. Diversification is the process of buying a basket of stocks/assets in such a way that the losses are minimized when the…
NSE defines the Nifty100 Quality 30 as an index that “aims to cover companies which have a durable business model resulting in sustained growth.” This means NSE will shortlist 30 companies out of the top 100 that meet the quality requirements. AI Image “This index consists of 30 companies which are selected based on low…
The biggest drag to optimal returns is premature switching and not a wrong selection of Investment Portfolio. People usually think they made a wrong choice by investing in XYZ funds so they withdraw money to invest elsewhere. They cannot be blamed per se, there are more than 2900+ mutual fund schemes to invest in. How…
Most of you would have heard about SIPs (Systematic Investment Plans). These are very popular among the salaried class of the workforce as the ease of investing in mutual funds is taken care of. SIPs are when you submit a mandate with a bank to debit an agreed amount and invest in mutual funds automatically….
The title is pretty confusing, right? I purposefully kept it confusing so that you feel amazed when we unwrap the contents. Firstly, let us talk about buying a car. I have two friends @mightyoffroader, and @sunubabu who would kill me when I say a car is a liability. For both of them, cars are life….
In the last few chapters, we discussed diversification & how it is getting measured. If you have not read those chapters, please do so. In the current chapter, we will discuss the standard deviation. The definition is the amount of dispersion of the measured instrument from its mean, but to explain it in detail we…
If you are someone who has not invested a single rupee into equity market, then let me explain the easiest way to do so. If you are in your 20s, then directly starting with equity investing won’t hurt you either because you have a decent 40+ years of “active income” possibilities. Again, this is with…
In the earlier chapters, we learned about Equity funds. There is another category called Debt Funds. AMCs could choose to lend money to corporations instead of buying their shares. The returns the AMC expects when they lend money to corporates is a period interest. Just like you take a loan from a Bank, you repay…
Let us first understand what an index fund is and then we will discuss how knowingly or unknowingly we let it trick us. Most of us might be familiar with mutual funds. We pay some amount to a fund manager and he invests that in a basket of stocks. The ratio in which that fund…
