In our article “How safe are your investments with MFs in India?”, we explored how returns from majority of MFs don’t beat Index and also realized that when pitched against TRI format, success percentage of MFs further drops. For this article, we also studied how the heads rolled after being top performer based on one…
According to a study in US in 2014, 86% of Mutual Funds could not beat the market and that too before they charged their commissions. In the period 2004-2014, 82% of the fund managers in US failed to beat the market and those that managed to beat did so out of sheer luck. The study…
To make money in equity markets, selling price must be more than buying price for any investor / trader / speculator. Even if Buy and Sell rates are same, profit for investors in equity segment and derivative segments will be vastly different. Within derivatives, there is a difference between futures and options. Please look at…
Background: The role of regulators in any part of the world should be to pave way so that fair play is assured for all market participants. It is completely undesirable for the regulator to create situations where their selected stocks are chased or their prices move in one direction irrespective of factors that influence such…
When the economy contracts, most countries following the Keynesian economic theory invest big in building infrastructure to boost the sagging economies. Indian government has clearly stated its goal of spending hugely into infrastructure before COVID-19, during its budget presentation. Post COVID-19, it has become almost imperative that the government will fire all its guns to…
Basic tenet of Capital market: Allocational efficiency is a characteristic of an efficient market in which capital is allocated in a way that is most beneficial to the parties involved. This calls for successful companies should have greater ability to raise capital at attractive terms and the savers backing such companies should see their portfolios appreciate over time. Having seen penny…
Need for Low Risk Product: MidCap index went down by a whopping 20% in last two years as against 9% rise in Nifty. This meant a MidCap underperformance of close to 30% in last two years. As a result of this scary development, there were deeper cuts in retail portfolios across the country. Investing in…
Summary findings: Vivekam stands tall among Fund Managers including those from most reputed business houses. Process driven fully automated solutions are set to trounce people backed policies. You don’t need to be a very big brand to deliver superior returns to clients. Investments chase returns and large networks seek unbiased and scalable solutions. (Mis)Leading Advertisements:…
With contributions from Mr. Kunal In the recent days, the markets plummeted from their august peaks by 14% approximately due to the various macroeconomic and microeconomic headwinds. Should this fall be a reason for panic? The answer to this is, absolutely not. The markets have seen such falls in the past and have recovered over…
Strength displayed by our indices baffled many investors in India. While they see serious dents in their portfolios, Indices are having a relentless run and are scaling newer heights on almost daily basis. It is true that there has not been broad based rally in Indian markets, as far as prices are considered. To prove…