At the current levels, valuations have become very attractive (as measured by marketcap/GDP, Price to Book and Price to Earnings multiple). So while this can be a great time to increase your equity allocation, the only problem is, we don’t know whether there can be a further fall and how deep it can go before the eventual recovery. … [Read more...] about Equity investment – should we invest all at once or in a staggered manner?
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Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now! … [Read more...] about ‘Broken Wing Butterfly’ is slow but steady strategy in making money amid volatility
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now! … [Read more...] about USD/rupee may go up further towards 78; here’s how you can trade this week
So, two takeaways here: One, taper your expectations of returns from very low duration instruments. Two, stay with quality low-risk funds rather than being lured by high yield to maturity in schemes in this range of tenure.Long can be dicey tooIn normal periods of significant rate cuts, the direction is clear. Long duration funds such as gilts will offer a bonanza. However, the current situation is a bit tricky for two reasons: one, the fiscal deficit arising from the moves by the RBI as well as the govt. to boost the economy would be a major worry for the bond markets. Hence, a clear signal for a rally may not be evident. Second, the targeted long-term repo operations by the RBI have provided a three-year window for banks and financial institutions to borrow at repo rate and deploy in the bond market. This is with an aim of stabilising the debt market. However, the window also means that banks and financial institutions will focus on medium-term bonds than long-term gilts. Hence, the … [Read more...] about RBI rate cut: Debt fund categories that look attractive now
Some economists have equated MFFP to the quantitative easing (QE) practiced by central banks. Well, the flow of funds may be the same but the mechanisms are different. In traditional QE, the governments continue to finance their expenditure via issuance of bonds. The central banks then buy these bonds under QE and give funds to the banks who channel the funds to the economy. The QE has often been criticized for being for Wall Street whereas MFFP is more like a People’s QE with funds flowing to Main Street. In traditional QE, the concerns over excessive debt and higher taxation in future remain. … [Read more...] about The Money Helicopters are on their way