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‘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 …
The concept of diminishing marginal utility states that when a product or service is used up several times, the enjoyment derived from its use declines. This suggests that the product or service loses value as more people utilize it. This is why people are prepared to pay the highest price for the first unit of …
First, let us try to understand what ‘SWP’ is. SWP stands for Systematic Withdrawal Plan, which is a means of redeeming your mutual fund holdings. You provide the mutual fund (in which you have invested) a standing order to redeem a specific amount from the fund on a regular basis. The frequency is normally monthly, …
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 …
‘Sequence of returns’ risk refers to the possibility of your portfolio experiencing negative returns later on in your working years and/or early in your retirement years. This risk arises from the order in which your investment returns take place. It is especially important in the five years before and five years following retirement, known as …
. Money affects us in a variety of ways; some people love it, some dislike it, and few individuals have no sentimental attachment to money. These connect with money, however, can vary substantially. Perhaps you are unconcerned about money. Maybe it’s a source of worries for you since your money beliefs may impact every monetary …
When it comes to investing, there are some crucial points we must remember. These key insights—including essential Long-Term Investing Principles—aren’t just for when you’re starting out; they should guide you throughout your entire investment journey (and, indeed, your life). Please note that the Long-Term Investing Principles outlined below are not an exhaustive list, but they …
Investing can seem overwhelming, especially for those just starting out. However, with the right approach and mindset, you can set a solid foundation for long-term financial success. In this guide, we’ll explore essential strategies for beginner investors, focusing on patience, diversification, and understanding the power of compound interest. Whether you’re looking to invest in stocks, …
For a beginner investor, the most important thing to remember is that investing is both a process and a commitment. The best advice a beginner investor can receive is to “be patient.” Beginner Investor – Key points to ponder: The more you examine your investment portfolio, the more likely you are to become confused about your …