What is Portfolio Diversification? Portfolio diversification is a crucial concept in finance, epitomised by the adage “Don’t Put All Your Eggs in One Basket.” This principle underscores the importance of spreading investments across various asset classes to mitigate risk. By diversifying across equities, commodities, currencies, and bonds, investors can shield themselves from unforeseen market movements, …
This is a tale of two unnamed businesses. These are two very popular stocks. Both are strong players in a very hot sector right now. One business sees gross margin growth, while the other business sees gross margin decline over 10 years. The business with the declining gross margin delivered a 5% CAGR (compound annual …
NEW DELHI: A proposed merger of Walt Disney’s and Reliance’s media assets in India could spark intense antitrust scrutiny over their market power, with lawyers flagging concerns that the combined entity’s strong portfolio of cricket broadcast rights could impact advertisers. The Disney-Reliance $8.5 billion merger would create India’s No. 1 TV player with 120 channels, …
Sanjiv Puri, CMD, ITC, says the Indian economy and even rural India has been very resilient. The infrastructure that has been created, the connectivity, focus on housing and digitisation, the direct benefit transfer and stuff like free food grain distribution are some of the very important steps taken in terms of the investment in the …
The attractiveness of the Indian markets is far from ebbing out. In the beginning of 2024 itself, there is another favourable development regarding the Indian markets. Bloomberg proposed to include India FAR (fully accessible route) government securities in the Bloomberg EM Local Currency Index. Quite naturally, this will ensure flows into the Indian markets. Capital …
Abhay Agarwal, Founder & Fund Manager, Piper Serica, says “outsourced manufacturing as a concept is here to stay and it will reward large players. While there is nothing wrong with branded players like Voltas or Blue Star, we would like to back very efficient, large and getting larger manufacturers like Dixon and Amber purely for …
Indian equities: going strong After a lacklustre performance in 2022, domestic equities were back with a bang in 2023. The S&P BSE SmallCap Index is up 45% year-to-date (as of 27 December). The S&P BSE MidCap Index was up 42%. International equities also did well, with the S&P 500 Index delivering 25% returns in rupee …
Investing in the right fund or product by itself doesn’t assure wealth creation. Smart investors rely on process and discipline. This process is reviewed and repeated for multiple years. The choices we make daily may not matter today, but they do so in the long term. If we give a blank slate to different investors …
Dalal Street’s highly-rated fund manager Rajeev Thakkar, who manages the Rs 48,000 crore PPFAS Mutual Fund, is happy to have missed out the multibagger rally seen in a number of PSU rail and defence stocks in the last few months. “Unlike a zoo where you probably try to have two samples from each animal species, …
When it comes to saving for retirement, you face several risks—market fluctuations, rising living costs, risk of outliving your savings, etc. However, most investors often overlook sequence risk. It refers to the potential danger of experiencing negative investment returns early in retirement. Such negative returns, combined with periodic withdrawals, lowers the amount of capital available …