There is always a mystery associated around the field of finance and especially investments. Is letting your money grow complicated? Is investment not a cup of coffee (or tea) even for the highly literate intellectuals? There certainly is some ambiguity or confusion around. Tax planning, insurance planning, estate planning, retirement planning – most people are
1. The gulf between a great company and a great investment can be extraordinary. Great companies may not have great investment value at all times. 2. Markets go through at least one big pullback every year, and one massive pullback every decade. Get used to it. It’s just what they do. Frame your investment strategies keeping
The government has been trying its best to curb the demand of gold and thus import of gold. An import duty of 10% was imposed on gold by UPA II in an attempt to rein gold imports and widen current account deficit. While these measure worked briefly, we saw reincarnation of 1970’s style gold smuggling
We have been long thinking that low risk anomaly that works so well over a period of time across the markets, how come more volatile/risky emerging markets (i.e. India) have been outperforming their less volatile counterparts (i.e. US) or at least that is the perception among majority of individual as well as institutional investors. We
One of the major concern bothering traders and investors alike is the tendency of selling winners too early and holding on to losers too late. Put it differently, market participants book their gains too early but holding on to their losses much longer. Let us understand this phenomenon by taking three different types of traders.
Before we start with anything on low risk anomaly, it makes sense to quickly look at some of the important theories that have evolved around definite positive relationship between the risk and the expected return. Finance theory suggests that there is a definite positive relationship that exists between the risk and the return. In order