Since 2016, Sebi has made many rules to prevent unauthorised trading by stockbrokers. Yet, one comes across dozens of cases of blatant overtrading in client accounts, every year, leading to massive losses to investors, observes Debashis Basu.
Irrational behaviour, born out of incomplete understanding, biases, overconfidence, fear or greed, has led investors to make less than half of what they could have in the capital markets, says Erik Hon.
Investing in equity markets to earn a good return over long term is not a cakewalk. One has to understanding her/his risk profile and importance of asset allocation to achieve financial aims
Institutional investment in real estate jumped nearly 9-fold during the April-June quarter to $1.35 billion, mainly driven by the inflow of funds in the warehousing projects, according to property consultant JLL India. In its 'Capital Markets Update Q2 2021', JLL India reported that institutional investors deployed $1,357 million in real estate during the second quarter of the 2022 calendar year as against a mere $155 million in the year-ago period.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Top officials said asking employees other than the fund management team to mandatorily invest a fifth of their salary goes against the principle of natural justice.
'If an investor is ready to stay put for the next five years, one can consider investing in mid- and small-cap funds, but through SIPs.'
'Decide on an asset allocation you are comfortable with and stick to it for the long term.'
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
Managing wealth is primarily about asset allocation. The basis for choice of assets and the proportion that should be held in each investor's portfolio depends on his/her objectives and constraints. It is the core proposition of financial planning.
Postpone the purchase of big-ticket consumer durable items, recreational spending on holidays, and other such expenses unless your financial position is very secure, advises Sarbajeet K Sen.
Equity fund managers say large-caps offer higher relative safety, especially in such times.
'Just because you don't see them does not mean they don't exist.' 'The greatest risk is overconfidence.
'We would advise investors to invest in a disciplined way in equities for the long term.'
Resist the temptation to react to every move of the market and remain disciplined with your investments till you reach your financial goal.
'Avoid going overweight on gold. But maintain a 10 per cent allocation via sovereign gold bonds,' Bajaj Capital MD Sanjiv Bajaj tells Sarbajeet K Sen.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Stay away from hot stocks and stick with the long-term performers that fit within your asset allocation needs.
'You should always maintain an allocation to gold as it has the ability to counterbalance any correction in the equity market.'
'We expect the bull run to continue until economic growth continues.'
'Gold could benefit from the resulting risk aversion, as happened last year.'
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Manage investments between debt, domestic equity, international equity, real estate and gold, advises Harsh Roongta.
Asset allocation - the way you divide your capital among different investment options - accounts for more than 90 per cent of your portfolio's overall return. Which is why it's so very important to get the asset allocation right in your investment portfolio.
Simply put, asset allocation entails holding a portfolio comprised of various asset classes like equity and debt, among others. Over longer time frames, asset allocation can help investors protect their portfolios on the downside and create wealth as well. Powered by investments in both equity and debt, balanced funds qualify as asset allocation tools. The debt component in balanced funds can insulate the investor's portfolio from the volatility in the equity markets.
Investors with moderate risk profile and investment horizon of over three years could look at investing in balanced funds.
Diversification and asset allocation can reduce uncertainty
Even investors with sums as low as Rs 1,000 per month can start their investment journey.
Mutual funds (MFs) are set to be net sellers of Indian equities for the first time in the past seven financial years, having sold stocks worth about Rs 1.27 trillion so far in 2020-21 (FY21), making it the highest net sales on record in a financial year. MFs had been net buyers in the previous six financial years, including purchases of over Rs 1.41 trillion in FY18, Rs 88,152 crore in FY19, and Rs 91,814 crore in FY20. The last time they offloaded Indian equities was in FY14, when they net sold stocks worth Rs 21,159 crore. In contrast, foreign portfolio investors (FPIs) have ramped up buying in FY21, purchasing more than Rs 2.6 trillion worth of shares.
Bajaj Finance was the top laggard in the Sensex pack, dropping over 9 per cent, followed by Axis Bank, IndusInd Bank, HDFC, ICICI Bank and M&M. Reliance Industries, however, capped the losses by rallying over 3 per cent. Sun Pharma, Hero MotoCorp, L&T, PowerGrid and Bajaj Auto were also among the gainers.
Many investors, who have made money in the rising market of the recent past, are pulling out of equity funds, believing that they can earn more by investing directly.
It is not the job of regulators to ensure that users make profits. It is not the job of regulators to prevent people from making losses. It is not the job of regulators to prevent people from doing stupid things, argues Ajay Shah.
Investors must, however, be prepared for volatility in ELSS, cautions Sanjay Kumar Singh.
Once the new rules kick in, you will have less cash-in-hand and may feel tempted to scale back on savings and investments.
Affordable pricing, a variety of themes, and the ease of transacting are among key reasons that have made smallcases a hit among young investors.
A quaint Indian idea called face value is putting high-performing companies out of the reach of retail investors, observes Debashis Basu.
The fundamental debate remains where you stand on the long-term growth question. That is what every investor must monitor and come to their own conclusions, suggests Akash Prakash.
While the market may remain volatile this year, analysts expect equities to deliver positive returns by outperforming inflation and government bonds, supported by the fiscal stimulus in the US.
As an investor, are you ready to benefit from the positives and to counter the negatives of 2005? Here's a guide to help you with your investment decisions.
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