asset allocation

Navigating the stock market: SIP strategies, asset allocation key for long-term mutual fund gains

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Navigating the stock market: SIP strategies, asset allocation key for long-term mutual fund gains

As the Indian stock market undergoes rapid changes across all segments, mutual fund investors must strategically position themselves. Given the current macroeconomic environment, maintaining a spirit of diversification is crucial. Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, emphasises the importance of a balanced allocation among large, mid, and small-cap funds. Swapnil … Read more

Looking to tap into the huge China stock market rally? Read this first

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Looking to tap into the huge China stock market rally? Read this first

In investing, the apt equivalent is: Be fearful when others are greedy, and greedy when others are fearful. Yes, yet again, a Warren Buffett quote. If you imbibe it into your decision-making process, the chance of long-term success is probably maximized. Regular readers of Contramoney have probably already got the drift. The time to buy … Read more

Many investors believe you can’t suffer losses in real estate. That’s just false.

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Many investors believe you can’t suffer losses in real estate. That’s just false.

Let’s consider a real-life example. A friend of mine owned a property for which he was getting offers in the range of ₹4.25 crore to ₹4.5 crore. However, he was determined not to sell for anything less than ₹5 crore. He held onto the property for five years and finally sold it for his desired … Read more

Understanding drawdowns before tactical allocation in a portfolio

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Understanding drawdowns before tactical allocation in a portfolio

Volatility is the lifeblood of financial markets. It creates profit opportunities but is also the source of sleepless nights for many investors. While some thrive on the adrenaline rush of market fluctuations, others shy away, deterred by the potential for losses. However, savvy investors understand that managing risk is equally critical. This is where the … Read more

Thematic and sector funds are all the rage. But recent returns mask the true risk.

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Thematic and sector funds are all the rage. But recent returns mask the true risk.

“Which mutual fund should I invest in?” It must have been the 20th time my sister had called to ask me this. As usual, I tried explaining the basics but was quickly interrupted this time. “Don’t waste my time, just tell me where most people are investing.” This was understandable. She had recently received a … Read more

From young investor to seasoned pro: How to evolve your strategy with life’s changes

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From young investor to seasoned pro: How to evolve your strategy with life’s changes

As you move through the various stages of life, your financial needs, goals, and risk tolerance naturally change—just like the terrain you’re driving through. What worked for you in your 20s might not be the best approach in your 50s. That’s where life cycle investing comes in. It’s a strategy that adapts your asset allocation … Read more

Tailoring portfolio diversification: Strategies for different phases of life

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Tailoring portfolio diversification: Strategies for different phases of life

The aim is to include assets that are uncorrelated or have low correlation with each other. Equities, debt, cash and gold are the most common asset classes in a portfolio, each providing a distinct flavour and benefit.  Equities, while having the potential for higher returns, can be volatile in the short term, triggering concerns over … Read more

How covid-19 losses prompted a plant manager to revisit his financial strategy

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How covid-19 losses prompted a plant manager to revisit his financial strategy

Known for his aggressive investments directly in stocks and small- and mid-cap mutual funds, Kumar is now seeking a more balanced and goal-oriented portfolio. “During the pandemic, my stock portfolio took a significant hit, and some of the stocks never fully recovered. I don’t want to face such a situation again as I work towards … Read more

How are different fund of funds taxed?

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How are different fund of funds taxed?

A Fund of Funds (FoFs) is a mutual fund that invests in other mutual funds or ETFs instead of directly in stocks, bonds, or other securities. They come in various types, such as equity-oriented, debt-oriented, hybrid, international, thematic or sectoral, ETF-based, and commodity fund of funds, each catering to different investor needs and offering diversification. … Read more

Elections 2024: How to position your portfolio ahead of significant events

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Elections 2024: How to position your portfolio ahead of significant events

Recently, social media has been inundated with inquiries from people seeking advice on how to position themselves in anticipation of significant events, such as trends emerging from the general election at 9.15am on 4 June, when India’s equity markets open for trade. Big events often create anxiety for most people regarding the decision to act … Read more