Pavlov’s Dogs: In the 1980’s Russian psychologist, Ivan Pavlov was researching salivation in dogs in response to being fed. He predicted that the dogs would salivate in response to the…Continue Reading
Imagine there are three bowls of water in front of you – one cold, one hot, and another at room temperature. Assume you put one hand in the bowl with…Continue Reading
Assume you were buying gold every month for ₹10,000. You plan to accumulate a few grams every month and continue building gold exposure over the next 10 years. If gold…Continue Reading
At some point in time, every year, the market has fallen below its peak. The average intra-year decline has been -22 percent for the last 29 years. Till 2011, intra-year…Continue Reading
The returns from equities for the last 1-2 years haven’t been great. The mid and smallcap category has taken a larger hit compared to large caps. The reasons range from…Continue Reading
Equity markets have been volatile since early last year and debt markets have been going through some turmoil since mid-2018. Not surprisingly, category average returns may look poor regardless of…Continue Reading
This being an election year, the Union Government had only declared an interim budget in February. The final union budget 2019 was presented by the new finance minister, Nirmala Sitharaman,…Continue Reading
Since early 2018, midcaps and smallcaps have been generally bound southward. This run of falling prices comes after a record rally and pricey valuations, which had funds turning wary of…Continue Reading
Recently, a journalist asked me whether retail investors need to be more careful with their debt mutual funds, in the context of the recent credit risk issues. My reply was, ‘Can they, really?’…Continue Reading
Last week, several debt funds dropped significantly on a 1-day basis, because of write-offs due to default. Then there were write-backs in some funds. What’s going on? What happens when there…Continue Reading