In the recent market correction, I observed many finfluencers and mutual fund distributors cajoling their over-concerned audience & customers by giving them reasons regarding why the markets will bounce back soon and why they should think of the long term and not worry too much.And this is when the markets didn’t even correct much – just around 10%. In the past, markets have corrected by more than 50%, a usual occurrence every decade. I am…
As many of you know, I am an investment professional. Very few know that I am also a regular table tennis player. I play at least 4 to 5 times a week. Therefore, it’s natural for me to think of analogies from table tennis that apply to winning the game of investments.Here are three fundamental qualities that you need to win in sports and investments (applicable to many sports but I will stick to table tennis…
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…
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…
INR has depreciated by 7.3% against the USD over the last year. Domestic currency depreciation is never good news for countries with trade deficits. A trade deficit indicates that a country is importing more than it is exporting. India’s merchandise exports in June 2022 jumped 23.52% YoY to $40.13 billion, while imports increased 57.55% YoY to $66.31 billion. Thus, the country’s trade deficit ballooned to a record of $26.18 billion resulting in higher demand for the USD.? Since…
It seems very exciting to get some investment advice for free that can help one make quick bucks. But do you know, what one perceives as free advice could be very expensive? The case in point is the so-called “free” advice on crypto investments from financial influencers. A few key problems with “free” advice are: – Not customized to you: People who advise for “free” are either giving a generic gyaan, pushing some products or…
One of the major causes of financial troubles is not being able to prioritize goals. We all have some financial goals. Common critical goals which are unavoidable – are retirement corpus, children’s education, and housing; and non-critical goals – world tour, luxury car, house in the mountains, etc. Many families focus on funding goals that are sooner in time without realizing the impact on their ability to meet critical goals that are many years away. In…
What returns should you expect from your investments? Historically, equity returns have been in the range of 15-20% annualized over the last 20 years. Many people think it is their right to get 15-20% returns on equity investments in the future as well. This may be the wrong way to set your returns expectation.Returns on investments (equity/debt/gold) are influenced by various factors – economic growth, inflation, interest rates, and prices at which you invest. These…