An equity market is an amusing place. Different people react differently to losses and gains. There could be two different perspectives on the same investment. Let’s take an example of a mutual fund – Scheme A. Let’s consider two investors with not much experience & skills in investing – Raju and Gopal bought Scheme A on the same day and for the same amount. Scheme A has incurred a loss of 20% when all other schemes…
A write-up by Sumit Duseja (co-founder and CEO, Truemind Capital) in LiveMint. Sebi introduced Registered Investment Adviser(RIA) as a category of intermediaries in 2013 to safeguard the interests of investors. RIAs are competent professionals offering unbiased and optimum investment advice to their clients. Nearly a decade thereafter of changes in regulations, challenges still prevail on the awareness of the benefits of hiring an RIA, limiting the growth of the profession. But what led Sebi to…
If I tell you, I flipped a coin 5 times and all the time I got head. What will be the outcome on 6th flip? Most of us will say head. Then I tell you that before this when the coin was flipped 20 times, the outcome was 50% head and 50% tail. After this information, we may get a little hesitant in calling out the outcome as head on the 6th flip but mostly…
The best investments are those which are rejected by the majority. Sounds counter-intuitive? But this is exactly how above-average returns are generated by smart investors. In the world of investments, something that becomes popular, with all the positive press around it, is chased by many investors. The more money flows to that investment “opportunity”, the higher the prices go up. Rapidly rising prices lure more investors who are drawn by the fear of missing out (FOMO) and…
Many people rely on historical returns to estimate the expected returns on their debt mutual fund investments. Unfortunately, this is a very misleading way of evaluating debt fund returns. The historical returns vary significantly from future returns in debt funds due to changes in interest rates. The last year’s return may appear low if the interest rates on average were lower. Now if the interest rates have shot up in the last few months, it won’t reflect in the last year’s return on the debt…
A few days ago, I had a very unusual request from the HR of a multi-billion dollar company with whom I was in discussion regarding sessions on financial well-being for their employees. She asked me- Can your company provide training on stock trading to the female employees? Since we have expertise in long-term investment strategies and financial planning, I told her that we could not help her with this requirement. The next thought in my…
In the wake of the Paytm crisis, many knowledgeable folks have shared insightful views. Some are supportive of and some are against Paytm. However, a key aspect has been missing in all the debates and arguments which I felt should be highlighted. We being a SEBI-regulated entity very well understand the importance of regulatory compliance. Compliances are in place to ensure: – Services provided in the interest of the end consumer- Reduce the risk in…
Do you want to create wealth from compounding? Aim for 12-15% returns and not 25%! You must be thinking why not target 25% returns? Well, here is the story. There is a typical cycle for most of the investors in the market. The most convenient and traditional investment options are FDs and real estate. When any FD investor wants to create a mutual fund portfolio, they expect returns slightly better than FDs.So if the FD is…