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Retail investors of late have been active in Futures and Options (F&O) trading. F&O average daily turnover has increased 34.5 times over the last 5 years (from Rs. 9.59 trillion to Rs. 331.2 trillion), but cash volumes have barely doubled (from Rs. 0.35 trillion to Rs. 0.73 trillion). First and foremost, what is this F&O segment? Similar …
The Indian stock market, which dates back to 1875, is among the oldest in Asia. That year marked the founding of the nation’s first stock market, the Bombay Stock Exchange (BSE). In the 19th century, trading took place under a banyan tree in front of Mumbai’s town hall. Today, it takes place electronically in a notable …
Factor investing is an investment strategy that includes selecting companies based on certain characteristics or variables that are expected to impact their returns. These characteristics may include value, size, growth, quality, and stability. The key difference between Factor investing and traditional investing is that subjective judgment is not used in stock selection when it comes …
‘Value investing’ refers to buying an asset at a price that is significantly lower than its intrinsic or true worth. The logic behind this is that markets may misprice assets, allowing investors to buy these mispriced assets at a discount, which will subsequently realise their actual value, resulting in significant returns for the investor. As …
Though stock market frauds highlight the volatile nature of certain risky trades, retail investors should concentrate on avoiding any mistakes. The investing landscape is inherently an oxymoron, with conventional techniques frequently leading to unexpected outcomes. This contradiction is expressed via the wisdom of investment icons such as Warren Buffett and Charlie Munger, whose experience highlights an unusual yet practical method …
First, let’s define alternative assets. An alternative investment is a financial asset that does not fit into any of the traditional investment divisions. Traditional asset types include equities, bonds, and cash. Simply said, these are not classified as standard financial assets like cash, fixed deposits, stocks, bonds, equity, or debt mutual funds. Alternative assets comprise assets …
When markets reach all-time highs or at all-time lows, the age-old debate about valuation reignites. However, before you consider changing your investment allocation based on whether the market looks to be overpriced or undervalued, you must first understand which valuation criteria are important. The price-earnings (PE) ratio is one such statistic that might help solve this …
The stock market in India has been witnessing a substantial influx of new investors in the past few years. There is also a major shift happening in the stock broking landscape, with the spike in discount brokers. So, the major question that comes to our mind is that – “How should new investors select a …
As history has shown, we are all smart human beings who try to increase our wealth sensibly. However, when it comes to financial markets, it is widely acknowledged that emotions and psychology often impact our actions, prompting us to react in unusual and unreasonable ways. Behavioural finance is an exciting area of finance that blends …
Today’s young investor enjoys a myriad of financial investing possibilities. However, one factor impacting their decision is the choice between mutual funds and investing directly in shares. In this blog post, we will attempt to address this issue of a typical investor. Just a disclaimer that this is not an investment advice and the pure purpose …