People talk about their winners more than their losers. Many times you hear people telling you they made a killing on one or two stocks. The reality could be that stock may be just 1% of the overall portfolio. Even doubling the stock price i.e. 100% return will add only 1% additional return to the portfolio.It’s not about how one or two stocks or schemes in your portfolio performed but how your overall portfolio performed that gives a…
Were you prepared for Russia’s attack on Ukraine? Well, we were at Truemind Capital.Not exactly for the Russia-Ukraine event, but for all the possible events that can puncture the bubble in various asset classes that were created on the back of unlimited and cheap liquidity. Read below to know HOW. The runup in any asset class creates a delusion that the rally will be permanent. Any small correction in the prices is followed by a…
“Ismein meri expertise nahin hai. I am out.” – Namita Thapar on Shark Tank IndiaI highly appreciated this stance by Namita with respect to investments. She came well prepared with an investment framework in her mind where one of the main criteria was if she doesn’t understand the business well, she won’t invest in it.Even when the idea seemed very appealing and others were getting interested, Namita stuck to her investment framework and let go…
“IT mein deadly scope hai” “Gaon mein production badh raha hai toh rural economy mein bhi growth hoga””Internet ki demand badh rahi hai toh internet companies ke stocks mein bhi growth hogi”Most of us have seen the wonderful ads by Smallcase advocating investing based on future growth prospects. The concept is simple – if you think a particular sector or theme is going to benefit in the future, you can take advantage of the growth…
A falling market tempts investors to invest more in the stocks they are holding. Everyone around you tells you to invest more in a falling market to average out the buying price.It makes perfect sense to add more stocks when the prices are cheaper but averaging out is an art and needs to be done strategically, else you end up holding losers that will form a significant part of your portfolio and would never go…
A contingency fund prepares you to take more risks. Sounds strange? Read ahead.A friend of mine is an aggressive risk-taker in matters of investments. He was mentally prepared to invest more in equity when there would be a correction.Came COVID-19 and shutdowns, the stock market crashed and presented an opportunity to invest at lower prices. But my friend developed cold feet because he became highly uncertain about his income given there were not much savings.…
“Inflation is eating your money. If you are keeping your money in Savings and Fixed Deposits, you are doing great injustice to yourself.” I see many LinkedIn users saying this in times of low interest rates on FDs compared to eye-popping returns on other asset classes like equity and cryptocurrencies. Is it wrong to keep money in FDs? Definitely not! Keeping money in FDs provides you with the safety of principal along with quick liquidity that…
If you are concerned about how your investment will play out, you must watch out for events happening globally besides domestic developments.Many people hold the misconception that risks associated with their investments are mostly domestic. Therefore, they think and focus on possible risks like general elections, border skirmishes, low domestic GDP growth rates, etc. Whereas in reality, our investment returns are majorly affected by what happens globally.India is strongly intertwined with Global markets financially and economically. Thus what happens in the USA and other…