Investing and the role of liquidity, risk and return

Should we invest now? Or should we wait for the market correction? Can we make target returns in such a high market? Should we buy more to lower the average price? Can we invest in such a volatile market and earn reasonable returns? These, and other related questions, often delay the investment decisions of people. …

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RBI may not have to drain cash further as core liquidity declines

Mumbai: The Reserve Bank of India need not have to tighten liquidity any further as a metric cited by the central bank has fallen below levels that could stoke inflation, potentially paving the way for Mint Road to effectively deliver a rate cut by letting market rates ease from their current elevated levels. As of …

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Alternative assets can offer better returns. Should you invest in them?

Imagine having a meal in your favourite restaurant. You start with appetizers, then go to the main course and end the meal with some wonderful dessert. Now think of your investment portfolio as this meal. The appetizers are like investing in direct equities, your main course is akin to investing in mutual funds and think …

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Liquidity in the banking system slips to 6-month low

Mumbai: Liquidity in the banking system has slipped into its deepest deficit in almost six months, inflating borrowing costs, as outflows due to corporate advance taxes and the Reserve Bank of India’s likely actions to stabilise the rupee have drained lenders of funds. As of September 16, the RBI infused ₹68,785.94 crore into the banking …

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Have stocks to lend? Here’s how SLB allows you to earn more

Over time, the National Stock Exchange (NSE) and BSE launched a stock lending and borrowing (SLB) mechanism that offered similar flexibility, but with tighter rules. SLB is not used widely these days as traders mostly rely on the equity derivative market—the futures and options (F&O) segment—for leveraged bets, bearish trades (buy put-sell call options/sell futures), …

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RBI: MPC Minutes: Excess liquidity on RBI radar

Mumbai: The Monetary Policy Committee appears prepared to look past the seemingly transitory phase of high inflation stoked by vegetable prices, but steps to reduce liquidity overhang in the banking system are likely to help contain price pressures, minutes of its August 8-10 meeting showed. “Given the likely short-term nature of the vegetable price shocks, …

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