Recessions are bad for stock prices in the short run, because company earnings fall and investors panic. But markets usually hit bottom well before the economy does, so for long-term investors the low prices of a recession have historically been an opportunity rather than only a threat. This article explains what a recession is, including … Read more >>
The biggest risks in unlisted shares are that you may not be able to sell when you want, and that the price you pay may have little to do with what the company is worth. On top of that come thin disclosure, dealer risk, a lock-in after any IPO, the absence of regulatory protection and … Read more >>
Asset allocation is how you divide your money between asset classes such as equity, debt, gold, real estate and cash. It matters because it largely decides how much your portfolio swings from year to year, and therefore whether you can stay invested long enough to reach your goals. This guide covers the main asset classes … Read more >>
The main benefits of ETF investing are low cost, instant diversification and the ability to buy or sell at live prices during market hours. The trade-offs are that you need a demat account, you pay brokerage and a bid-ask spread, and a poorly traded ETF can be hard to exit at a fair price. This … Read more >>
The best long-term investment strategy is the one you can stick with for 15 to 30 years: a simple, low-cost plan matched to your goals, funded regularly and left alone through market falls. For most Indian investors that means a core of diversified equity funds bought through a monthly SIP, some debt for stability, and … Read more >>
No. Dividends are only one part of what shareholders earn; the other, and usually larger, part is capital gains from a rising share price. Together they make up total return, and over long periods most of an Indian equity investor’s wealth has come from price growth rather than dividends. This article explains total return, how … Read more >>
No. Owning a diversified basket of Indian companies for many years has historically had a positive expected return, while a casino game has a negative one for the player by design. But some ways of using the market, such as chasing tips, heavy leverage and buying cheap options for a quick win, behave much more … Read more >>
Small-cap funds can deliver some of the highest long-term returns in Indian equity, but they have also lost 50–75% in past crashes. Five established funds worth shortlisting are Nippon India Small Cap, SBI Small Cap, Axis Small Cap, HDFC Small Cap and Kotak Small Cap. Each has more than ten years of history and a … Read more >>
The candlestick patterns most useful for swing trading are a small set of reversal and continuation signals, such as the hammer, engulfing patterns, morning and evening stars and the inside bar. None of them works on its own: a pattern is only worth acting on when it appears in the right place in the trend, … Read more >>
Yes, beginners can make money in the stock market, but mainly by investing for years in diversified funds, not by trading. SEBI’s own studies show that roughly nine in ten individual F&O traders and seven in ten intraday traders lose money, while a patient investor in a broad index has historically come out ahead over … Read more >>