After registering a low in March 2020, the equity market has not looked back. Not just that, the performance of the market has been quite stunning. Nifty 50 Total Returns Index (TRI) registered a low of 10,710 on March 23, 2020 and as on April 23, 2021 it was 20,392. In this period, Nifty 50 TRI generated 64 per cent of annualised returns. This can very well be seen in the graph presented alongside.
According to the Securities and Exchange Board of India (SEBI) data, new dematerialisation accounts between April 2020 and January 2021 surged to an all-time high of 1.07 crore. Experts believe that smooth and easy access to stock markets due to technology has led to such a rise. Definitely, this can also be very well-attributed to the rally that the equity market provided in this period. In fact, this rally has also led mutual fund investors to exit from mutual funds to invest directly into stock markets. This has left many wondering as to whether at all one needs debt mutual funds. In this article we would be carrying out a study wherein we would try to answer this question.
The major problem with investors is their perception about the equity market. Most investors often treat the equity market as an easy money minting machine. In fact, these days we can also see a lot of share market trading classes as well. But the true fact is that most of these classes vanish during the bear run. Therefore, it is always better to have the correct perception about any instrument you are investing in. The equity market tends to reward those investors who understand the inherent risks associated with it and still remain invested.
While designing an investment portfolio, an investor might have either one or a combination of the below mentioned three core objectives:
1. Protect capital
Diese Geschichte stammt aus der May 10, 2021-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 10, 2021-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
