Many investors discover the weakness in their diversification after the damage has begun. On ordinary days, a portfolio may look well spread. It may contain several funds, many stocks and enough cate...
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Value investing fundamentally relies on making sound comparisons to identify opportunities. However, significant problems arise when these comparisons are ill-chosen or inadequately defined. For inst...
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Momentum is one of the more awkward ideas in investing. The FIFA World Cup offers a useful way to think about it. A team that starts a tournament well often looks different by the third match: the pa...
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Buying something below its worth sounds simple. And that is a problem. In the stock market, a low price can mean two very different things. It may signal an opportunity that others have ignored. Or, ...
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IntroductionPicture this. You are on a highway, and suddenly, the sky opens up. Heavy rain falls. The road becomes slippery. Visibility drops to nearly nothing. Every driver around you starts reacting...
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Note: Returns and numbers used in this blog are for illustration only and do not represent actual scheme returns. Introduction Imagine Rahul and Priya starting the same journey on the same day. Both...
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Introduction Imagine you walk into a store and you see two similar shirts on the same rack. One is tagged Rs. 2,000. The other Rs. 1500. Same look, roughly the same quality. So what's going on? Somet...
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Two friends: Arjun and Priya, started an SIP in the same factor fund on the same day. Arjun checked his returns every week. After a few months of sluggish performance, he pulled out assuming the stra...
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Imagine two investors looking at the same market screen. One investor sees a stock trading at ₹80 and immediately assumes it must be undervalued. Another stock trading at ₹2,500 seems expensive t...
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IntroductionImagine you are at a restaurant with four excellent chefs. Each specialises in something different. One makes a blend of flavours and spicy dishes. Another prepares slow-cooked, with compl...
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Introduction Picture two rental properties in the same neighbourhood. Both cost ₹50 lakh. The first brings in ₹3 lakh in rent every year. The second? Just ₹1 lakh. On paper, they look identical...
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