I went shopping over the weekend, occasionally indulging in simple pleasures!! Coming back home, I noticed things that were not on my list, not needed in the truest sense, but I bought them. When wondering why and how this happened – I realised it was probably due to the placement of products, limited-time offers, encouraging testimonials, or customer reviews. My academic pursuit of behavioural science tells me it is not a coincidence but a time-tested marketing tactic of using nudges. What are Nudges? Technically, nudges are persuasive techniques that harness human cognitive biases and decis ..read more

Please find below the 5 charts that tell interesting stories on Markets and Investing. 1) Is Stock Market Expensive right now for Investment?: 1) US and Emerging Markets are close to fair valuation 2) Japan, China and Europe are relatively cheaper. 3) Equity markets are not in bubble mode and have good scope for rally from here.  Good time to be invested in Equity. *Source – JP Morgan 2) Correlation between Indian GDP and Corporate Earnings Growth: 1) Correlation is not very high 2) In 2003-2008, earnings grew at 2X of GDP 3) In 2009-2020, earnings grew at 0.4X of GDP 4) In 202 ..read more

“A good father is one of the most unsung, unpraised, unnoticed, and yet one of the most valuable assets in our society.” – Billy Graham. In the grand tapestry of parenting, a prominent figure often gets overshadowed, underestimated, and sometimes even overlooked – the Father. While mothers are widely celebrated for their nurturing instincts and tireless dedication, it’s time to honour and appreciate fathers’ notable roles, giving a lifetime of lessons. Father’s Day is an opportunity to express gratitude for their unwavering love, guidance, and support. This year, let’s celebrate fathers for t ..read more

In the ever-changing landscape of investment, the upcoming elections might stir up a sense of uncertainty among investors. However, the astute investor recognizes a unique opportunity during such a transition and potential disruption. One can reap substantial rewards by embracing the challenge and investing with confidence.   There is no debate that investing in the stock market with a long-term perspective is generally prudent. However, investors can benefit from any positive sentiment and market rallies leading up to the event by investing before the election. Though timing the market ..read more

A potential investor told me that he had a dream scenario: a Public Provident Fund (PPF) that would take any amount of money and give back tax-free returns. He said he would put all his savings in it if that were possible. I tried to persuade the client to invest in the equity asset class for a long-term horizon, but he only had eyes for PPF. It’s not fair to compare them because they are different asset classes with different roles in a portfolio. The only thing they have in common is that they are both long-term investment tools. But what about their long-term returns? PPF gives an 8% post ..read more

‘Mutual Fund investments are subject to market risks.’ We’re all familiar with this caveat. Mutual funds are not products that generate fixed income. They are risky, and market circumstances influence their performance. Furthermore, past results do not guarantee future results. As a result, while analysing a mutual fund, one must consider factors like asset allocation, investment strategy, and other factors, giving a more complete picture of the fund. Performance evaluation of mutual funds is an essential aspect of investing in them. Evaluating mutual fund performance requires a comprehensive ..read more

We are the future. It gets inked once again.  The recently released Global Financial stability Report by the International Monetary Fund (IMF) indicates the substantial pace at which the economic order is shifting away from the developed economies towards the emerging economies. The emerging economies, with India playing a pivotal role, are the drivers of the world economic growth in visible times ahead. The pressures of sticky inflation despite the hawkish monetary policy stand by major Central Banks, risks of a financial contagion post the shock of UBS, rising global debt levels and ge ..read more

Please find below the 5 charts that tell interesting stories on Markets and Investing. 1) Stocks are looking for rally after the end of Fed hiking cycle: Historically, stocks have generally rallied following the end of Fed tightening cycles. The average 1 year return after the last fed hike is ~15% in USD. We think that US Fed is done with the rate hiking in current cycle and we will start seeing rate cuts this year. Bullish on equity in the coming years. 2) FIIs are expected to come back to India soon: India’s premium over emerging markets has gone now. India was trading at a 90 ..read more

With the IPL fever on, we are all rooting for our favorite team to win. May the best team win the league. But what about the investing game? How do you succeed in this investing game? What does winning in investing even mean? Is it earning outstanding returns or beating the market? Or Financial independence? Investing is a game. It’s just not the one you think it is. Investing is an infinite game. Philosopher James Carse’s book, “Finite and Infinite Games,” in 1986, established that two types of games unfold in the world: finite and infinite. Examples of finite games include chess, football ..read more

The collapse of Silicone Valley bank and Signature Bank in the US and Credit Suisse’s emergency merger with UBS Group AG this week has shaken the world. Herd psychology is a force in the fast-moving world of financial markets. The failure of Silicon Valley Bank and Signature Bank, two much smaller regional lenders, shook investor confidence worldwide. Credit Suisse, the giant 167-year-old European bank, Switzerland’s second-largest bank by assets, is a “global systemically important bank” (or “G-SIB”) and is very different from the two US banks. Credit Suisse is not just a Swiss problem ..read more