Nifty 50 stocks with index weightage and market capitalization are tabulated for November 2020. These 50 out of the 1600 companies traded on the NSErepresenting 65% its float-adjusted market capitalization. The index started trading in April 1996. Nifty 50 Stock weights (%) November 2020 Security Name Industry Free Float Market Capitalisation (Rs. Crores) Weightage (%)…
Continue reading →On Nov 6th Nifty closed at 12263 within striking distance of its Jan 14th 2020 close of 12362, something that no would have believed a few months ago when on March 23rd we saw the biggest intraday fall and the 10-year Nifty SIP Return fell to 2.3% and14-year SIP Return to 5%. In spite of…
Continue reading →Series VIII of Sovereign Gold Bonds 2020-21 will be available from November 09-13, 2020 with Settlement date November 18, 2020. During this period, the price will be Rs. 5177 per gram for offline subscriptions. Online purchases will cost Rs. 50 less. This is marginally higher than the seventh tranche which opened at Rs. 5041 and…
Continue reading →SEBI has today announced a new equity scheme category: “Flexi cap fund”. This comes after Septembers announcement of multicap asset allocation rules (25% each of large, mid and small cap stocks) was met with fear by investors and put many large fund houses in a fix, especially those with a large AUM: How SEBI’ss Multicap MF asset…
Continue reading →The freefincal Equity Mutual Fund Performance Screener (November 2020) is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark and spot mutual funds that have got a higher return than a benchmark at a lower risk. Inside, you get ~ 40% discounted links…
Continue reading →The Government launched an LTC (Leave Travel Concession) Cash Voucher Scheme for Central Government employees on 12th October 2020 to enable employees to purchase goods and services instead of availing LTC & leave encashment. On 29th Oct, they have extended it, non-central govt employees, as well. Now the private sector, public sector and state govt…
Continue reading →From this month, we shall be publishing a tracking error report of index funds (ETFs to be added later). The data is available for free and will be presented in an intuitive, easy-to-understand format. This month, 34 index funds and one ETF (Nifty Bees) are part of the list. We have now established the difficulties…
Continue reading →Each time we point out that Sensex or Nifty returns have reduced considerably over the last decade and caution investors to lower expectations, there are always a few comments that go, “why to invest in equity or equity mutual funds if there is no guarantee of returns? The risk of investing for a long time…
Continue reading →Govt of India (GOI) has announced the sale (Re-issue) of 6.80% Government bonds maturing in 2060. Retail investors can participate in this sale via the NSEgoBid platform on Nov 3rd and 4th 2020 (10 am to 5 pm). The auction will be conducted by the RBI on Nov 6th. Details of the 6.8% GOI Bond: …
Continue reading →In this article, we show how the NAV of an index fund or the price of an ETF is affected by a market crash and discuss a simple, effective way to measure tracking error. That is how well the fund or ETF was able to track the underlying total returns index. Textbooks define tracking error…
Continue reading →This was a question posed in Facebook Group, Asan Ideas For Wealth: “Say I have 100rs and I am a highly risk-averse Individual and want 8% return YoY in the current economy. What are the options available? My investment horizon is 5 years”. This answer to this interesting question involves essentials of risk and reward…
Continue reading →Following the Supreme Court’s direction, the government came up with a scheme to waive off interest on interest during the 6 month moratorium period for eligible loans. As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest to his account whether the borrower has availed the moratorium fully,…
Continue reading →Profit-booking is a colloquial trade name for selling stocks or mutual funds. Many investors are confused by what it actually refers to and how it is different from terms like redemption and rebalancing. This is a simple explanation for newbies. Let us understand profit booking with an example. Suppose you purchased 100 stocks of a…
Continue reading →After frustrating investors for the last few years, ICICI Prudential Value Discovery Fund has performed well in the last few months. Is this because of simply following the index? We investigate. After investing in an actively managed mutual fund, all investors care about is a return higher than the index. It does not matter for…
Continue reading →It is well known that stock market returns are clumped: it will rain returns in a big way followed by years of frustration. In this article, we investigate the annual and monthly returns of the Sensex from April 1979 and show the annualized return after 41 years depend on just a few good years/months. All…
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