Why retail investors fail to get market beating returns?

The BSE Sensex has delivered phenomenal compounded returns in last forty years or so. The Bombay Stock Exchange index moved from a mere 100 in 1979 to 50000 by 2021.   This means that if an investor had invested Rs. 100 in the index way back in 1979, it would be worth approximately Rs. 50000 today.   But not […]

The First Principle

PC: Financial Express The First Principle Many investors have lost far too much money due to investments in products that they don’t understand. The first principle of a sound investment is to have a full understanding of the product and whether you are comfortable with it or not. Yes, investors should take professional help, but […]

Case study # 200806 – SIP adequacy for achieving the goal.

  THE CASE: I want to build Rs. 1 Cr in the next 25 years. Currently invested in mutual funds to achieve the same goal are: HDFC Sensex (Rs 10,000), Mirae Asset Emerging Fund (Rs 5,000), Parag Parikh Long Term Equity (Rs 5,000), Axis Mid Cap (Rs 3,000), SBI Small Cap (Rs 2,000), HDFC Gold […]

Case study # 200731 – Fear of market crash in the goal year itself

  THE CASE: What will happen if my goal maturity time meets a market crash and all my long term investment with negative return e.g if goal is marriage or higher education of children or retirement. THE SOLUTION: If you are invested in equity oriented investments for your long term goals, an ideal approach would […]

Why is the price of gold rising?

As interest rates dip across the globe, yield starved investors are flocking to gold. Now add to it the uncertainty of a global economic slowdown looming large, and U.S.-China relations inching to a point of no return. Gold beckons as the safe haven. As Mohamed A El-Erian, chief economic adviser at Allianz, recently tweeted, that investors continue […]