1. Introduction: The balancing act of Policymaking In today’s interconnected economic environment, Indian Government faces the dual challenge of sustaining high GDP growth while ensuring micro-level welfare benefits reach every citizen. The task is not just economic; it is deeply political, social, and structural. The recently announced ₹576 trillion fiscal [...]
What is SIP? Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds by contributing a fixed amount at regular intervals. It helps investors mitigate market volatility and create wealth over time. Understanding market correction A market correction occurs when stock prices drop significantly, typically by 10% [...]
Dynamic Asset Allocation Fund Balanced Advantage Fund Comparison Aspect Dynamic Asset Allocation Fund Balanced Advantage Fund Flexibility in Allocation Highly flexible; can go from 0% to 100% in equity. Less flexible; equity and debt have minimum allocations. Risk Management Adjusts based on market conditions and valuations. Uses derivatives to hedge [...]
The recent fall in the Indian stock market, mirroring global trends led by a downturn in the US markets, has raised concerns about the mid-cap segment. Factors such as persistently high inflation, tighter monetary policies, and slower economic growth are impacting investors’ sentiments. The US Federal Reserve’s hawkish stance to [...]
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 [...]
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 [...]
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 [...]
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. [...]