Have you ever experienced buying a product, such as an electronic gadget or a mobile phone, for around ₹50,000, only to find it later available at a discounted price of, say, ₹45,0007 It's a common occurrence where m items purchased at one price are subsequently found at lower prices. Similarly, in the world of financial markets, you might plan to purchase shares of your favourite company, monitoring them closely for a month before buying. However, sometimes after your purchase, the share price drops below your purchase price, resulting in the shares trading at a discounted price compared to what you paid.
Furthermore, a similar situation may arise in your mutual fund investments. For instance, consider having a monthly SIP of ₹5,000 that you started a year ago. Despite 12 months passing, you find that the investment is showing a negative return or that the current investment value has fallen below the total amount invested. When faced with such a scenario, it's important to pause and carefully consider your options. If you haven't encountered this situation vet, it's fortunate, but it's also an opportunity to educate yourself and prepare for what actions to take if it were to occur. Looking for a strategy directly is not suitable for everyone. Firstly, investors should understand the factors that affect their investments in market-linked instruments such as stocks or mutual funds.
Understanding the Factors Contributing to Losses in SIP Investments
Before finding any strategies for managing loss-making SIPs, it's essential to identify the factors that can contribute to losses in SIP investments. SIPs, by nature, involve periodic investments at different market levels, meaning that your investments are not timed to perfection. Various factors can lead to losses, including:
Denne historien er fra July 15, 2024-utgaven av Dalal Street Investment Journal.
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Denne historien er fra July 15, 2024-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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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
