LEARNING


The recent market fall is not all about economic crisis. Implementation of healthy corporate governance is another factor that led to the wreck If you think that the fall in share prices of major companies during last two months has happened only because of prevailing economic crisis in...

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While policy makers are grappling with management of volatility in currency and banks are struggling to manage their debt portfolio, the recent spate of high volatility in many asset classes have made even retail investors rethink on their investment strategies Financial and physical...

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Moneylife Digital Team 16 July 2013
Older investors are far more skilled than younger ones, because of experience and learning from mistakes. What do you need to do to learn better? In the previous issue, we had written about the importance of keeping a diary which will facilitate learning from mistakes. After all, making...

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Moneylife Digital Team 08 July 2013
We keep getting queries about stocks that have crashed, like Opto Circuits and Gitanjali Gems; or those like Mascon Global, which became illiquid and eventually stopped trading. How can you stay away from such disasters? At Moneylife, we routinely receive emails from investors asking...

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Moneylife Digital Team 25 June 2013
The private placement market is a place for amazingly high-risk and low-reward products. Sample this. India Infoline (IIFL) is touting a paper that involves placing money with a Delhi-based developer of properties called Pratibha Impex. The company will pay interest at 18%pa (per annum)...

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Moneylife Digital Team 18 June 2013
A new research by Jef­frey Wink­ing and Nich­o­las Mizer of Tex­as A&M Uni­vers­ity on human generosity suggests that past studies may have overestimated this human quality   All this while it was believed that humans are inherently generous. Several studies seem to confirm this. A...

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It is not possible to capture inflation details with one set of numbers, howsoever wide it may be in terms of coverage. Fighting inflation also requires homework from each individual, which needs gauging of inflation at the individual level   When the WPI (wholesale price index)...

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Moneylife Digital Team 17 April 2013
A Brief Primer on Bitcoin, the internet currency that has taken the world by storm   As the Eurozone plummets into chaos and confusion with the Cyprus bailouts, pundits are questioning the very notion of fiat currency, the Euro’s strength and the very foundation of the European Union....

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Diversification is just a means to create a portfolio which is expected to provide good returns as well as reduce risk. However, diversification does not guarantee successful achievement of investment objectives Diversification is a much talked about subject in finance. Right from our...

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Moneylife Digital Team 22 March 2013
A new study analysed six investor surveys over 50 years and found investors to be highly irrational   Business and economic students are taught that investors are a ‘rational’ lot. These students go on to become fund managers, financial analysts and sometimes manage investment...

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Moneylife Digital Team 01 March 2013
Two researchers explain the factors behind the massive rise in gold prices. Will these factors remain constant, and as dominant, in future? Gold is a peculiar asset class. Everybody has a bit of it and many want to buy more of it, hoping that it is a hedge against inflation. But there...

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Invest in companies where the management ensures the highest return on the invested money I strongly believe that the single most important number, at least for me, when considering investment in stocks, is return on equity or RoE (this is the number that Moneylife relies on the most,...

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Moneylife Digital Team 01 February 2013
Only heavy users of ACs are sure to recover the extra money they shell out for an AC with a 5-star energy rating The Bureau of Energy Efficiency (BEE) is the government department that examines the efficiency ratio of air-conditioners (ACs), refrigerators and other appliances. BEE is...

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For small investors, Inflation index bonds can be beneficial. Though the real return from these bonds will be close to being a very nominal amount, the wealth erosion won’t happen This comes in the background of increasing gold import in the country which has added to the increasing...

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Moneylife Digital Team 30 January 2013
Studies, surveys, regulation, misconduct and savers’ behaviour from around the world Life Insurance Gaps A new US study has found that unmarried parents are significantly less likely to have life insurance than their married counterparts, despite their clear need for coverage. The...

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Moneylife Digital Team 30 January 2013
Just like personal relationships, trust matters in finance as well. And there’s a dearth of trust in the markets now The basis for any successful relationship is, of course, trust. This is true not just for interpersonal relationships but also for investing. When you buy a stock from a...

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Moneylife Digital Team 21 January 2013
Most builders provide one of the four options—Down-Payment Plan, Construction-Linked Plan, Flexi-Payment Plan and Time-Linked Payment Plan. Calculate the benefits that the builder gives you and weigh them against the costs/penalties that would be levied if you do not make timely payments

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Nilesh Kamerkar 16 January 2013
Investing is simply a struggle for self-control. You can’t control what the market does, but you can control what you do in response. Your returns depend less on whether you pick good investments than on whether you are a good investor “If you don’t know who you are, the stock market is...

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As an investor all of us need to be rational in our approach towards investment. The most important lesson that comes from the current rally is that long-term in the stock market can really be long The Indian stock market is on an upswing. The popular index, “BSE Sensex” touched 20,000...

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Moneylife Digital Team 15 January 2013
Personal loans, being unsecured by nature, are priced much higher than a loan that has a security attached to it. For smaller loans, you needn’t collateralise your home or your vehicle, you can borrow against smaller market-linked securities or those having a fixed value With consumer...

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