Investing with Confidence by Prioritizing Fundamentals in Volatile Markets
Investing in the stock market is a roller-coaster ride. Recent global trade tensions, heavy outflows from foreign institutional investors (FIIs), and weak corporate earnings have all contributed to an environment of heightened volatility. Weak inflow data from AMFI further indicates that investors are increasingly hesitant to commit capital. However, volatility is not something to fear.…
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Vivek Sharma
Myopia
Myopia is an illness that prevents people from seeing distant objects clearly. It’s a very common condition—over ten million people suffer from it every year in India. While there are no official statistics, I am certain that this illness consumes far more people in the investment community than in medicine. Short-sightedness has plagued all parties…
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Vivek Sharma
Problem of Investing with Star Fund Managers
Investors have long elevated certain fund managers to celebrity status, creating a cult-like following around them. These star managers wield immense influence over the investing community, often making headlines, and the stocks they buy can skyrocket overnight. Over time, their identity becomes so intertwined with the fund itself that the fund and its manager become…
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Vivek Sharma
SEBI Mandates Disclosure of Information Ratio for Mutual Funds
The Securities and Exchange Board of India (SEBI), in its latest circular, has mandated that all Asset Management Companies (AMCs) disclose a risk-adjusted return measure called the Information Ratio (IR) from April. This article explores how the ratio is calculated, its usefulness in analyzing mutual fund performance, and the challenges associated with its use. Why…
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Vivek Sharma
Overconfidence Bias
Do you consider yourself to have an above-average intellect? If so, you’re not alone. Approximately 65% of the people who were asked this question considered themselves to possess superior intellect and have a brighter future than an average person. Another similar survey asked people whether they considered themselves to be an above average driver, and…
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Vivek Sharma
Seven Math Concepts with Real-World Application
During our school days, we often asked our teachers how the concepts that we were learning were going to help us in life. Most teachers didn’t have an answer to that question and would simply dismiss us. Prof. Sanjay Bakshi challenges this conventional approach of monotonous rote learning and enlightens us with a fresh perspective…
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Vivek Sharma
Gulaq Balanced Investment Approach
Model portfolios have become a popular investment approach for retail investors lately. Investment Platforms such as smallcase, wealthdesk, etc. have allowed investment advisors to create and test their investment ideas with a collection of stocks on offer to investors. The trend led to the rise of thematic, sector specific, factor specific model portfolios. These portfolios…
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Vivek Sharma
Setting returns expectations
A good investment plan starts with setting the expectations right. The importance of this grows multifold in this informative age, where social media platforms’ feed is filled with people finding multibaggers, doubling the investments in a matter of a few months, etc. Investors with higher expectations tend to quit markets once reality hits, and join…
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