The Sensex has surged by 500% in the past four years and mutual funds have done exceptionally well for themselves. Many have given great returns to their unit-holders. Many new fund companies are coming into existence. There are hundreds of funds to choose from. Isn’t this great for investors? Unfortunately, mutual funds are a highly-flawed and over-hyped financial product. Their actual...

Today’s increased value of an existing power company, REL, comes from the value that another power company, RPL, which will create value tomorrow!

The stock price of Reliance Energy Ltd. (REL) has gone up from Rs777 to Rs1,852, a 138% rise in less than three months. What has caused this instant value creation? Strangely, it has nothing to do with REL at all. It has everything to do with a...