According to SEBI, stocks whose market Capitalizations are smaller than the 250th company by market Cap are classified as SmallCap stocks. SmallCap companies tend to be newer companies or emerging companies which have not yet reached the scale of operations associated with Mid Cap companies. These companies can be in sectors...Read More

Risk diversification in investment parlance is essentially an application of the age old idiom, “Do not put all your eggs in one basket”. Prices of different assets rise or fall depending upon market and economic conditions. If you spread your investment over different assets, your risk of making a loss reduces compared to investing in a single...Read More

Investors, who do not want to expose a portion of their wealth to vagaries of equity markets, invest in fixed income instruments like bank deposits and debt mutual funds. Debt mutual funds have become increasingly popular with retail investors and HNIs over the last 10 years. Potential of superior returns across different risk...Read More

Spread of Coronavirus pandemic across the world has sent stock markets around the world in a free fall. From its all time high of nearly 42,000 in mid January, the Sensex broke below 26,000 levels towards the end of March 2020. Over the last 2 – 3 weeks we saw a good recovery in the market and the Sensex is now trading above the...Read More

The outbreak of Coronavirus pandemic over the last 2 months or so has sent shockwaves through financial markets across the world. The pandemic has rapidly spread outside China over the last one month and infections have multiplied in many countries including India. Stock markets in major economies have cracked with Dow...Read More

One of the most encouraging trends of investor maturity in India is the increasing popularity of SIPs in India. As per AMFI data, there are more than 3 Crore SIP accounts as on January 2020. More than 1 crore SIP accounts were added in FY 2018-19 and a higher number is expected to be added in this financial year. Rs 8,532 Crores were...Read More

Bank Fixed Deposits have been the traditional long term investment choice of average Indian households. As per Reserve Bank of India’s annual statistical publication on financial assets and liabilities of Indian households, bank FDs account for nearly 50% of average household savings with life insurance policies a distant second...Read More

As we embark on a new decade, it may be interesting to see how our stock market did in the last decade (2010 to 2020). In the last decade, Nifty 50 TRI gave 10.2% CAGR returns. As far as the broader market was concerned, the Nifty Midcap 150 TRI gave nearly 12% CAGR returns in the last decade. Equity as an asset class outperformed...Read More

The last 2 years have been difficult for mid and small cap stocks and funds. Nifty Midcap 100 index has fallen nearly 20% in last 2 years, while the Nifty Small Cap 100 index has fallen 37%. 2019 was a relatively better year for small and midcaps, even though we saw negative returns for both midcap and small cap indices in 2019 as...Read More

We get many queries on our website seeking guidance on what to do with mutual fund schemes which are not performing well. Should you redeem and sit on cash? Should you switch to better performing funds and if yes, which mutual fund scheme should you switch to? Should you continue to hold and wait? How long should you wait...Read More