Your Money: How Core-satellite Portfolio works
Investment approaches and strategies have simply proliferated in the last two decades, to the extent that investors tend to get confused between similar strategies. The core-satellite portfolio strategy is one such approach, which can be mistaken for the static asset allocation strategy in vogue. Let…
Floating Rate FD: Is it a Good Idea?
Next to gold, fixed deposits or FDs are the sentimental favorites of investors across India. Safety of investment and predictability of income are two reasons that have endeared FDs to investors. However, FD interest rates have remained muted over the past few years. In the…
Your Money: Measuring a Stock’s Intrinsic Value
When something is priced high, it is natural to assume it has high value. The world of investment works differently. Retail investors tend to chase highly priced stocks, glibly unaware that they may in fact be buying a stock of low intrinsic value. Value investment…
Stock Vetting: Scan Financial Ratios first
Where stock investment advice is concerned, there is no dearth of online advice, investment portals, and investment apps. However, nothing can replace your own analysis of preferred stocks and getting a first hand feel of the worth of a company’s stock. Fundamental analysis using certain…
Your Money: Is Contrarian Investing for you?
Human psychology dictates that we follow the herd to minimize dangers. This is where things can go wrong in equity investments through stock markets, and equity is often considered to be one of the most suitable choices for long term wealth creation. Here is where…
Your Money: How Static Asset Allocation works
The question that keeps most investors awake at night is, how does one decide which asset to invest in and how much? This can be answered by identifying a proper asset allocation strategy. Static asset allocation is a time-tested strategy that can provide a realistic…
Know your Rights as a Homebuyer under RERA
Despite the promulgation of the Real Estate (Regulation and Development) Act 2016 (“the Act”), many home buyers remain unaware of their rights with respect to a home purchase from a builder or developer. In this article, we shall see how home buyers in India can…
Your Money: How Total Expense Ratio affects mutual fund Net Asset Value
Mutual fund investors typically expect the Net Asset Value (NAV) of the mutual fund scheme they have invested in to appreciate in line with the market prices of the stocks and bonds held by the mutual fund scheme. When this does not happen, investors are…
Investment Planning: Five Investment Risks you Need to Factor in
Investment risk is reduced by putting your investments into different assets like gold, property, bonds and stocks. Having a portfolio of investments spreads your risk across investments that react differently to market forces, thus reducing your investment risk. Yet, investment risk does not get completely…
Investment Planning: Four Cardinal Rules of Asset Allocation
Asset allocation is a way of determining how much to invest in each of the four major asset classes—equity, debt, commodities, and real estate. Each of these asset classes come with its own pluses and pitfalls, and thus investors’ preference of asset classes may drastically…