Behavioural economics brings together elements of economics and psychology in the real world. It helps us understand how and why people behave in the way they do. It’s a study of what people “should” do, what they “actually” do, and the consequences of those actions. It makes behavioural economics a lot different from traditional neoclassical economics. Traditional neoclassical economics assumes that every human makes well-informed and rational decisions. But behavioural economics considers the emotional and impulse side of decision-making. It takes into account how humans continue to be influ ..read more

Investment options like fixed deposits (FDs), stocks, mutual funds, and gold are quite popular. But of late many alternative investment options have also sparked curiosity among investors. The list of alternative investments includes hedge funds, private equity, commodities, real estate, venture capital, private debt placement, peer-to-peer lending, investing in start-ups, arts, antiques, vintage coins, stamps, inventory financing, etc. Many investors, especially HNIs, family offices, and some affluent retirees, use these instruments to generate passive and recurring income. Interestingly, the ..read more

If you follow stock market news, you must be familiar with the term IPO. But have you heard about FPO (Follow on Public Offering)? Recently, the board of Adani Enterprises has approved the FPO of Rs. 20,000 crores which is pending shareholderholder’s vote. If the entire sum is approved through shareholder’s vote, this would be the largest FPO in the history of Indian Financial markets. But what exactly is an FPO and how does it work? To help you understand this question, here are 5 things you need to know about FPO. 1. What is FPO? Follow on Public Offering (FPO) is the way by which a company ..read more

Index funds have been gaining popularity over the years. The assets under management (AUM) of index funds stood at Rs 1.73 lakh crore in FY21-22, up by 197% as compared to Rs 58,173 crore in FY20-21, according to the Association of Mutual Funds in India (AMFI) data. Even though awareness and demand for index funds have risen, still many people confuse them with stocks. Index funds invest in stocks as per the index’s stock composition, similar to mutual funds. However, unlike investing in stocks, you do not need a Demat account to invest in index funds. You can invest in index funds just like a ..read more

Stocks and dividend-yielding mutual funds provide investors with two sources of income. First is the capital appreciation in the share prices or net asset value (NAV) of mutual funds. The second is the dividend, which is a part of the profit that the company pays to the shareholders. During bear markets, when share prices are falling, dividends may be the only source of income. But are there enough high dividend-paying stocks in India? How can one select these stocks? And are they a good bet for the long term? Let us study some related data. The aim is to see if a shift towards higher dividend ..read more

“The individual investor should act consistently as an investor and not as a speculator.” — Ben Graham. It’s always a good time to invest in the market. Currently many Investors might be concerned that the ripple effect of high inflation like global recession may adversely affect Indian markets anytime. They are worried that the Indian market may correct significantly from here and if it is the right time to invest in NIFTY 50 index funds. Should You Worry About a Correction In NIFTY 50? Honestly, it is impossible to predict if markets will correct from here, and it may not be the right approa ..read more

The Parag Parikh Flexi Cap Fund is an extremely popular fund in the flexi-cap category. The fund has consistently outperformed its benchmark NIFTY 500 TRI and its peers in the Flexi Cap category. Moreover, the fund has never delivered a negative return if an investor stayed invested for seven years. In fact, the minimum returns the fund has delivered for any 7-year period is 14%. That’s considerably higher than the 8% returns that NIFTY 500 TRI has delivered. But, what if we tell you that you can create your own PPFAS Flexi Cap Fund? We recently came across a blog from Sharat Chandra that argu ..read more

Value investing has existed for a long time. Legendary investors like Benjamin Graham and Warren Buffet have made a fortune by embracing value investing. And their strategies have been studied in detail. But this blog is not about them. This blog is about Peter Cundill, a little-known investor who developed his investing philosophy around value investing. And his fund, the Cundill Value Fund, delivered 100x returns to his investors over 33 years. In this blog, we will present six proven value investing strategies used by Peter Cundill. And many of these strategies will be from Christopher Riss ..read more

Index funds are for investors who want to keep their equity investment simple. These funds follow a passive investment strategy, as they simply mirror the benchmark. The passive way of investing also makes index funds more cost-efficient than actively-managed funds. Hence, their portfolio and performance are all linked to a specific index. Nevertheless, apart from the fact that index funds are passively managed, they are just like any other equity mutual fund. Therefore, how much you should invest and for how long you should stay invested in index funds will depend on your goal. Going by conve ..read more

We often discover a few things that are true across multiple fields. The more fields an important concept features in, the more likely it is to be a fundamental and recurring driver of how the world works. In that thread, investing also borrows approaches and thought models from many disciplines. And the world’s most successful investors are quite good at recognizing these evergreen investing lessons from various disciplines. In this blog, we’ll explain four fundamental investing lessons from fields like statistics, biology and evolution, topics that seemingly have nothing to do with each othe ..read more