#MoneyArth

Stock indices are falling like there is no tomorrow. Every investor seems to be in a hurry to liquidate. Even quality companies that were holding steady in the last few years have come under pressure. In one month, HDFC Bank lost 30 percent of its market cap. Bajaj Finance lost 41 percent. Asian Paints 20 percent. The list is long. Not a single company from Sensex is in green YTD. This time fall is not restricted to mid or/and small caps or few sectors. Sea of red ink is visible everywhere . This is panic time. Panic time, investors do make mistakes they would not have made during normal time. There is a double whammy this time, unlike the 2008 Lehman crisis. In 2008 time, one need not worry about health, but this time health, as well as wealth, are under threat.   Keeping in mind present psyche of the market, I am outlining four mistakes that investors should avoid   1. Catching falling knives   Many investors would be tempted to ...

Sovereign Gold Bonds are the finest alternative to have gold in your portfolio A gold fund and an ETF are a part of each other. When you invest in a gold fund, the gold fund further invests in a gold ETF. It just provides you with the extra convenience of investing in a mutual fund at an additional fee. Gold funds charge a fee that is over and above the expense of a gold ETF, which, at times, will reduce your return by about half per cent. So, basically, the difference is on the cost front. But you should not consider gold as an investment. Rather you should consider it as an insurance to your portfolio so that its value will not go down when any calamity happens. If you have a time horizon of seven to eight years and want to buy gold as a fixed allocation of your portfolio, then I think the finest alternative that has been created for Indian investors is Sovereign Gold Bond (SGB). This is because all the other investment avenues, whether it is a gold fund, ETF, jewelry or even dig...

What to expect in the second half  of year 2020 after experiencing a roller coaster ride in the first half?  What to expect in the second half after experiencing a roller coaster ride in the first half? It was a roller coaster ride for the investors in the first half of 2020. We saw Sensex and Nifty touching an all-time high and then steep fall, followed by an equally sharp rise. In this volatility, Sensex and Nifty lost almost 15 percent. Mid and small caps did better as compared to large caps, but they too are in red. Overall more stocks declined as compared to advanced. In Nifty and Sensex, almost 80 percent of stocks are at a lower level since the year began. In BSE 500, the ratio is relatively better, with 75 percent stocks quoting below YTD. But the real surprise is that not a single stock from Nifty Bank or Nifty Finance is in the green in YTD. These were sectors to go after. The sectors that gained fancy are Pharma and Telecom. Overall, India Inc lost Rs 16 lac crore o...