Negative Mutual Fund Returns is today's harsh reality. In past, i always cautioned my readers that it's a myth that Mutual Fund Returns cannot be negative. A market meltdown does not spare even the best managed mutual funds. I was quite disheartened to see some of the best names delivering negative returns on a y-o-y basis. The three months and six months Mutual Fund Returns are negative for almost all the mutual fund schemes. When i wrote a post, Why you should not invest in SIP? i received some sharp reactions in my mailbox. Mutual Funds are projected as safest bet to invest in equity market ... Read More
Should i invest in Banking Stocks?
It will not be an extrapolation to say that Banking Stocks are the lifeline of the Stock Market. There are 9 Banking Stocks in NIFTY 50. These contribute 18.56% weightage to NIFTY 50. The maximum investment of mutual funds is in Banking Stocks followed by Auto and IT. Moreover according to experts, the revival of Indian Economy is not possible without the participation of banking sector. These days each and every stock market expert is BULLISH on banking stocks especially Private Sector Banks. General consensus is that 3 banking stocks i.e. HDFC Bank, Axis Bank, and IndusInd Bank are better ... Read More
Avoid Equity Investment in 7 Sectors
Equity Investment is very tricky subject. It is very easy to say that start Equity Investment when markets are down. In BULL market, an investor has performance benchmark to decide, but in a bear market it is missing. Though relative benchmark can always be fixed i.e. relative strength of a stock. Depending on the macroeconomic parameters, the analysts keep changing their favorite sectors/stocks. It is not that easy for a retail investor to change the portfolio at such a fast pace. Trading Stocks are very easy to identify. The dilemma arises in stocks for long-term investment. You need to ... Read More
What to do in a Volatile Stock Market?
A volatile stock market is a harsh reality of today. Unfortunately investors don't have many options but to invest in the volatile stock market among all asset class. In my posts on Stock Market, i highlighted this point even when the market was in bull phase. Traditionally, there are 4 ways to invest your money. These options are real estate, gold, equity and traditional savings schemes like FD, RD etc. Except for equity, rest 3 investment options are almost dead or redundant in a modern world. The returns from gold and real estate are negative from last couple of years. The pain will ... Read More