- If you don't have trust in insurance, then what must you do?
Insurance has existed since the earliest forms of civilization, with humans and animals alike forming groups to protect and support each other. Over time, the insurance industry began selling insurance based on fear rather than the underlying principle of collective well-being. Insurance is essentially a mechanism for caring for each other, extending support to people beyond our immediate circles. It is about individuals and communities coming together to mitigate risks and build a well-protected society.
- Lord Ganesha's lesson on navigating stock market cycles
This stage signals the concept of death or declines within the market cycle. Investors lose money and focus on re-evaluating their strategies and risk tolerance just like devotees focus on reflecting on their obstacles in life.
- Why HNIs are increasingly opting for family offices to oversee their investments
In this journey, they would have taken professional help and support in various specialised areas like legal, regulatory compliance, mergers and acquisitions, valuations, loan syndications, and government policies.
- The human element in algo trading: Balancing automation and intuition
To thrive in this environment and optimize our investment processes, there's a compelling need for cutting-edge tools and technology. Enter algorithmic trading – a game-changer for investors and traders seeking to augment their innate abilities.
- Empowering India: A glimpse into Battery Energy Storage Systems for a sustainable future
India envisions a future where 30% of new vehicle sales will be electric by 2030. A substantial amount of battery storage is needed to facilitate this shift - a staggering 34 GW or 136 GWh to support the additional 450 GW of renewables.
- Will the sun stop shining on Indian small and midcap stocks?
India has taken a pause on interest rates and the country has seen significantly higher interest rates in the past, and hence both the Indian govt. and corporations are more resilient to any slowdown due to higher interest rates.
- Why India is in the investment spotlight
India’s growth continues despite a global economy that is sputtering. Europe, China, Japan, Russia, and North America are each struggling with challenges ranging from slowing growth, aging population, and slowing birth rates to shadow inflation and debt.
- The good, the bad, and the not-so-bad of August inflation
The overall index declined sequentially for the first time in eight months in August. The overall index was down 0.1% on month in August.Core inflation, which is inflation excluding volatile food and fuel, fell to 4.8% in August from 4.9% a month ago. This is the lowest level for core inflation in over three years. In other words, core inflation is the lowest since the pandemic. Core services inflation has remained moderate at 4.5% in August, despite the evidence of strong service sector activities.
- Inclusion in global bond index could witness inflows jumping tenfold
Inclusion in such indices not only enhances a country's global visibility but also makes the country's debt market more appealing to foreign investors. It thrusts Indian bonds into the spotlight as a global investment opportunity and provides international investors with a straightforward and transparent means to gain exposure to the Indian debt market. This heightened visibility holds particular significance for emerging economies like India, as it leads to an inflow of foreign capital which in turn stimulates economic growth.
- When in doubt, diversify
The paper concluded that asset allocation explained 93.6% of the variation in a portfolio’s return. In 1991, an update to this study was published which confirmed the findings of the original study and concluded that asset allocation explained 91.5% of return variance.
- The future of wealth management will be hybrid - a blend of physical and digital
This not only ensured the uninterrupted operation of their businesses but also laid the groundwork for a digital-focused future. Wealth managers took proactive steps by investing in digital operational frameworks and harnessing data-driven insights.
- ‘Vasudhaiva Kutumbakam’ in stock markets: Let’s explore market interconnectedness
In this highly interconnected environment, local financial shocks and events can be easily amplified and turned into global events.
- What are the 3 essential R’s for exporters and importers' success blueprint?
For individuals engaged in global trade, what holds utmost significance are their currency and the currency of the country with which they are either exporting or importing.
- Is the fiscal heading for a Catch-22 logjam?
This might make it imperative for the government to increase the tax burden on the corporates, look for other avenues like higher dividend payouts from PSU companies and RBI, or accelerate the pace of PSU divestment and use the balance sheets of PSUs for this purpose.
- Super process, super outcomes! The importance of process in investing
One such person was Remi Lucidi, a global traveller with a passion for heights and architecture. His adventures include scaling various skyscrapers and architectural wonders around the world and documenting his exploits on his Remi Enigma Instagram account.
- Will the weakening Chinese dragon strengthen the India Bulls?
The $19 trillion Chinese economy is decelerating fast. There are some fundamental issues dragging the Chinese growth down. China’s population has peaked and has started declining. An economy with a declining population cannot sustain long-term growth above 3 percent. This is a lesson from economic history.
- 5-fold growth in 5 years; ETFs can be a great entry point for novice investors
For a substantial span post inception in 2001, ETFs had an insignificant existence until the government infused fresh life into them through divestment and debt ETFs. Since 2015, Employees’ Provident Fund has also given ETFs a shot in the arm via its consistent exposure.
- From moon landings to megatrends: India's journey $30 trillion GDP future
Over the past decade, India has witnessed a remarkable transformation, particularly in the aftermath of the COVID pandemic. Notably, the nation has surged into the top five global economies from thirteenth in the year 2000.
- Gifts that matter: Celebrating Raksha Bandhan with smart financial presents
In the intricate fabric of Indian culture, festivals work like skilled weavers, twining threads of heritage and sentiment to unite families.
- Why small caps are most attractive and exciting space in capital market
Smallcaps are indeed the most attractive and exciting space in the capital markets and have been known to create the biggest wealth compounders over the years – provided one practices enough due diligence, patience, and discipline while investing in this segment
- Breaking the chains of debt: A pledge for financial freedom on Independence Day
For countless individuals, the burden of debt casts a shadow over their ability to lead a life on their own terms. The pursuit of financial independence necessitates understanding the intricacies of the debt cycle.
- The boring path to exciting returns
When you try to make a quick buck, you pay a lot of attention to what’s hot and sizzling at the moment. This invariably means flipping your investments every now and then to chase the ongoing trend. But just like fashion, trends keep changing faster than you can keep pace with them and you never settle with your investments.
- Harnessing the potential of currency options: A comprehensive guide
Currency options, when used wisely, are a powerful tool for mitigating risks and seizing opportunities in today's ever-changing global market. The key lies in understanding the intricacies of options, documenting objectives
- Indian stock market decoupling has begun. 3 reasons why it will last
India’s economic and earnings growth strength, coupled with a possible recession in the US are the two key reasons behind India’s outperformance and we are hopeful that this outperformance should continue due to 3 reasons.
- Markets@record high! But, do you know when to sell?
Selling can seem very black and white but it is actually a lot more grey than we care to admit. Selling can feel like a breakup in a relationship and we know how painful it can be. One of the hardest things in investing is knowing when the right time is to sell.
- How to plan your investments when Indian equities are more attractive than global peers
The Indian stock market has been one of the best-performing markets in the world over the last 3 months. Over the last 1 year, 3 year, and 5 years, the Nifty 50 has delivered a CAGR of 21.6%, 23%, and 12.4%, respectively. This strong performance has been driven by the confluence of a number of factors. Notably, over the last 2 years, two very significant events have transpired
- Growth versus interest rate dilemma decoded
The problem with higher interest rates is that households have less disposable income post higher interest outgo, which leads to lower spending. Slower spending by individuals impacts the growth in top and bottom line of businesses, which then consider holding off on investment and hiring.
- Is the market finally out of a 20-month long-time correction?
The Nifty 50 has been experiencing a time correction for the past 20 months, trading within a narrow range. This has frustrated investors, but the market is expected to return to its normal course in due time. The prolonged stagnation can be seen as an opportunity cost, as alternative investments could have earned a risk-free 6-7% return. However, the time correction has resulted in more comfortable valuations, with earnings improving and inflation showing signs of easing. Major central banks have also paused rate hikes. Overall, investors should remain patient and unaffected by the time correction.
- AI and the art of questioning: How investors can use chatbots
The advancement of AI technology has led to the development of more complex machine learning models like rule-based systems, expert systems, and machine learning. The use of AI applications exploded, with the development of virtual assistants, autonomous vehicles, and personalized recommendation engines
- Hot & gold: Your guide to investing in India's favourite precious metal
Gold has been a highly desired asset in India for centuries due to its value, prosperity, and inflation protection. There are multiple avenues of investing in gold in India, including physical gold, gold funds, digital gold, and sovereign gold bonds. Physical gold is a good option for those who want to wear jewellery, but it can be costly and come with extra taxes and regulations. Gold funds are taxed based on income tax rate, while digital gold is a convenient way to invest in physical gold but is not regulated. Sovereign gold bonds are exempt from capital gains tax and offer a simple interest rate of 2.5% per year, but have a lock-in period of 5 years. Investors should carefully consider each method before making a decision.
- Market valuations tad pricey but justified; growth stocks might command higher bucks
Indian equity markets started CY23 weakly due to a bear attack from a US short-seller on one of India's largest listed conglomerates that led to cashing out by FIIs. However, markets have recovered significantly since then as India's macroeconomic fundamentals remain stable and pro-growth monetary policies are predicted.
- Value or growth investing? No theme runs forever… Here’s the biggest rule of building wealth in market
The distinction between value and growth investing is not straightforward as it often appears. The traditional definition of value as buying stocks with a low price-to-earnings ratio or price-to-book ratio may not be accurate in understanding the market. Investors must exercise flexibility in their investment philosophy as no theme runs forever, and certain geographies, sectors, asset classes, and investment strategies work for a limited period.
- Dos and don’ts for mothers starting on their financial journey
Mothers face gender disparity and artificial barriers in the financial world, preventing them from taking control of their money. To overcome this, mothers should be helped with financial lessons and be given easy access to free financial tools. They should prioritise making sure they have enough money for their child's education and are not dependent on their children for retirement. Mothers should set financial goals, build an emergency fund, create a retirement fund, and prioritise life and health insurance. Investment options such as mutual funds are a popular choice as they offer varying degrees of risk and returns. However, financial literacy remains a major challenge among mothers.
- Invest Right! Do you know these 7 ‘Truths of Investing’
Despite a culture of high savings, only 5-6% of Indians invest in equities due to a lack of financial literacy. However, fintech companies and financial institutions have started leveraging user-friendly interfaces, informative content, and investment tools to educate and empower individuals to make informed investment decisions.
- Allocation in your portfolio through the mutual fund route
The other approach is getting into hybrid funds, with a defined portfolio allocation. There are aggressive hybrid funds with an equity allocation of more than 65 percent of the portfolio, there are conservative hybrid funds with equity of less than 25 percent of the portfolio, there are arbitrage funds, balanced advantage funds, etc. The advantage of this approach is that hybrid funds, since they have a defined asset allocation, will reset the portfolio when there is a deviation.
- How to use large language models in asset management industry
These models, such as GPT-3, are able to analyze vast amounts of data and generate natural language text, making them well-suited for tasks such as market analysis, portfolio management, and even trading.
- Why is asset allocation important for first-time investors?
You pick assets as per your goals' time horizon: If you have no short- or mid-term goals, you can think of having a higher allocation to equities. On the other hand, if you have near-term goals, you can opt for debt instruments. Asset allocation helps you create a portfolio by factoring in your financial goals' time horizon.
- RBI meeting outcome on Wednesday: Will it be a pause or 25 bps rate hike?
While market participants remain slightly divided between a pause and a 25 bps hike in the upcoming policy, there seems a clear consensus that the monetary policy will signal an end of the rate hiking cycle. However, we remain cautious on the possibility of dovish forward guidance just yet
- If I were FM: Sampath Reddy recommends making new tax regime more lucrative for individuals
Therefore, to incentivize both lower and higher-income individuals to shift to the new regime, it can perhaps be made more lucrative--by providing some additional tax sops, while retaining the overarching simplified tax structure of the new regime.
- The Impossible Trinity: FM must bat like Suryakumar Yadav, bowl like Umran Malik & field like Ravindra Jadeja this Budget
The budget should focus on encouraging private investment through tax incentive to accelerate growth. This can include things like tax credits, deductions, exemptions, and other financial incentives to encourage entrepreneurs.
- If I were FM: Sonam Srivastava on top 10 things that could fuel economic growth
I would also expand the tax relief for MSMEs, rationalise GST and boost credit growth in small and medium enterprises. In addition, I would expand the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) for emergency help for SMEs.
- If I were FM: Saurabh Mukherjea’s list of 3 dos and 3 don’ts for Budget 2023
India Inc needs a more copious supplier of skilled workers to deal with the double digit wage inflation we are seeing in factories, in Financial Services firms and in IT Services. More than university graduates, we need youngsters who have practical skills which make them valuable in manufacturing, operations and sales roles. India Inc should be given the license to set up Technical Education Institutes which can impart such practical training and thus drive mass job creation.
- Global central banks search for immaculate disinflation turns longer
Even though we might be approaching closer to the peak of Fed hikes and going forward the magnitude of hikes may come down, we believe there are quite a few considerations before assuming that it’s time for a Fed Pivot
- Learn with ETMarkets: What are the advantages of investing in bonds?
Bonds offer high liquidity compared to FDs as it helps you buy or sell them with great ease in the secondary market. It is known to provide the advantage of selling bonds without a substantial change in price.
- How US recession and dollar appreciation will impact India stock market: Aashish Somaiyaa
The focus to cut inflation at any cost is widely expected to cause a recession in the USA. Ultimately, the US dollar will reflect their economic reality i.e. a slowing economy and possibly even a recession which will cause eventual movement out from the US in search for growth.
- Macros hint at liquidity returning to markets soon; India to see better flow than China
India’s growth story is here to stay and in the current macro environment we are the strongest force to reckon with. Stay invested as this ride to glory will not be smooth due to issues beyond India’s control.
- How global firms are looking at the Indian investment story
A strengthening USD pushed global Investors away from Emerging markets and India couldn’t avoid this wave. However, the structural Indian growth story is still intact which attracted foreign direct investment (FDIs) coming into India in more numbers.
- Watch out for attractive valuations! Market likely to stablise at current levels
However, here again there is some hope that it could correct as OPEC increases production. We would track the outcome of the US President’s visit to the Middle East and European purchases of Russian oil. In the event of the Russia-Ukraine war ending, oil prices could drop sharply.