The rapid accumulation of mutual funds, particularly in open-ended schemes, has the potential to create liquidity challenges under certain conditions. Unlike fixed deposits, which offer predictable and stable cash flows to banks, mutual funds rely on market-based instruments that are inherently volatile. A sudden surge in redemptions, triggered by adverse [...]
The recent downturn in both Indian and U.S. stock markets has raised concerns among investors. In India, key indices like the Nifty 50 and BSE Sensex have experienced declines, influenced by global economic factors and domestic challenges. Notably, foreign investors withdrew over $10 billion from Indian stocks in October 2024, [...]
When it comes to saving and growing wealth, Indians often debate between Mutual Funds and Fixed Deposits (FDs). While both options offer their own set of benefits, Mutual Funds have increasingly emerged as a more attractive choice for wealth creation in the Indian capital market. Here’s why: While FDs are [...]
As India steps into 2025, the new Reserve Bank of India (RBI) Governor faces a delicate balancing act amid evolving economic challenges. With global uncertainties and domestic transitions shaping the financial landscape, the governor’s policy decisions will be pivotal. The Indian economy, projected to grow steadily, confronts headwinds from a [...]
The RBI’s Monetary Policy announced in December 2024 has several implications for the mutual fund industry. Here’s a breakdown; Repo Rate Unchanged at 6.5% Reduction in Real GDP Growth to 6.6% CRR Reduction from 4.5% to 4% Inflation Revised Upward to 4.8% General Outlook for Mutual Fund Industry The policy [...]
The Reserve Bank of India (RBI)’s December 2024 monetary policy has several significant implications for the economy, markets, and stakeholders due to its decisions on the repo rate, real GDP growth projections, cash reserve ratio (CRR), and inflation outlook. Here’s a breakdown: Repo Rate Unchanged at 6.5% Real GDP Growth [...]
A multi-cap fund is an equity mutual fund that invests across market capitalizations—large-cap, mid-cap and small-cap stocks. The strategy aims to provide diversification by capturing growth opportunities in different segments of the market. This flexibility allows fund managers to adjust the portfolio based on market conditions, offering a balanced risk-return [...]
Higher tariffs, or taxes on imported goods, can have significant economic and social effects on international trade, often disrupting global supply chains and increasing the cost of goods. When a country imposes higher tariffs, it generally leads to higher prices for imported products, making them less competitive in the domestic [...]
Gross Domestic Product (GDP) is a key economic indicator that measures the total value of goods and services produced by a nation. It plays a crucial role in the stock market, as it reflects the overall health of the economy. A growing GDP generally signals economic expansion, boosting investors’ confidence [...]
The green shoe option, also known as an over-allotment option, allows underwriters to sell more shares than initially planned in an IPO (Initial Public Offering), usually up to 15% more. This option helps stabilize the stock price by giving underwriters the ability to buy additional shares if demand exceeds expectations. [...]