What can a capital protection scheme do that you cannot do yourself? Virtually nothing

Mutual funds are all offering ‘capital protection’ (CP) schemes. Is it such a sophisticated product that an investor has necessarily to go through the fund route? Or is it simple enough for an investor to replicate it himself without any difficulty? Let’s look at CP funds closely.

A CP scheme is a...

Here are some clues on what to do in times of rising price

There is an official rate of inflation, which to my mind does not reflect the reality. Inflation can only be captured by a cost of living index that is truly representative and is framed on the basis of real people and their actual monthly budget. This can be done across a few cities, each city differing from the other in one or two...

Keep your shopping list ready and wait for stock prices to come down to levels you are comfortable with

We have an interesting paradox. Corporate profits are likely to be in record territory, if one goes by the March 15th advance-tax payments. Stock prices, however, seem to be falling. Is that telling us something? Interest rates are rising; inflation is not yet tamed (shares are the only...