Monetary policy expectations impact stocks more than rate moves: RBI paper

Equity markets are impacted more by the expectations of future monetary policy than the policy rate surprises on the day of announcement of the policy by the Reserve Bank, said an analysis. According to a working paper prepared by RBI officials, the regulatory and development measures which are announced along with the monetary policy too …

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Mid-cap: Mid-cap & small-cap fall raises volatility, margin call concerns

Mumbai: Mid- and small-cap stocks tumbled on Monday as heightened concerns that the recent run-up in several of them – especially public sector companies – has been excessive, and prompted investors to aggressively cut their bets. If the decline in share prices continues, it could result in margin calls by brokers – a situation where …

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A good alternative: Why you should Invest in gold via a structured route

In an era of financial intricacies and market uncertainties, understanding the significance of portfolio stability and diversification is paramount. Gold, renowned for its historical resilience and value appreciation amid economic turbulence, emerges as a compelling choice. With a low correlation to equity markets, gold serves as an effective diversification tool, reducing portfolio volatility while enhancing …

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Chinese funds are struggling: Is there hidden value in them?

Geopolitical challenges, volatility, and inflation are all threatening to upset the investors’ applecart. Diversification is key as it helps them protect their returns. For Indian investors, looking at international diversification, investing in China—the largest economy in emerging markets—has been a compelling option. But the recent performance of China-focused funds has done little to instil confidence …

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Rupee: Rupee closes at new low on Gaza spillover, crude flare-up worries

Mumbai: Flames leaping out from the war in West Asia theatre appeared to singe the Indian currency Monday, sending the rupee to a new closing low against the US dollar that’s advancing against other monetary units amid concerns over the conflict’s duration . The rupee settled at 83.28 per US dollar, a fresh closing low. …

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Is long-term investing only about compounding?

One of the most valuable yet frequently misunderstood pieces of advice in the realm of equity investing is the notion of “investing for the long term.” However, the question that often arises is: What does long term truly mean? The concept of long-term investing is open to interpretation and is often contingent upon the type …

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Of tracking error and tracking difference

Passive funds follow a rule-based approach to investing with no active stock selection. They follow an index (like Nifty 50 or Nifty 500) and try to replicate its performance by buying all stocks with the same weight as in the index. In the replication process, several practical challenges can prevent the fund from achieving the …

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