A recent report by Kotak Institutional Equities observes that almost 70{fa12a1ddfd2e9511e425ffa82d03ff10cf8f6b496ca27868adfa8056076e54a2} of the portfolio of mutual funds and more than 70{fa12a1ddfd2e9511e425ffa82d03ff10cf8f6b496ca27868adfa8056076e54a2} of portfolios of other financial institutions like banks and insurance companies is invested in just 40 listed companies.

In our previous post, we talked about portfolio churn and how it can be a good indicator of the quality of an investor’s process and portfolio. Similarly, the liquidity or churn in the shares of an individual company can also be an indicator of a different type of quality.

Portfolio churn is an important indicator to consider when assessing the quality of a fundamental long-term investor’s process.

Portfolio churn can be calculated as the value of sells (or buys) in a given year divided by the average value of the portfolio during the

The National Stock Exchange (NSE) Fifty index, better known as the NIFTY 50, or just the NIFTY, is India’s primary stock market index. It was launched 25 years ago yesterday, on April 22, 1996, at an opening value of 1,136. Yesterday, on April 22, 2021, it opened at a value of 14,219.

BloombergQuint has an interesting article out recently which cites a rise in Life Insurance Corporation’s (LIC) life insurance policy claims settled during the period April to December 2020.

The Supreme Court has disallowed the extension of the moratorium period on loans allowed by RBI due to Covid. It has also vacated its previous stay on the classification of bad loans.

For the past many years, commercial bankers have been saying that due to India’s high levels of non-performing assets (NPAs) in the corporate sector, they have been focusing more on the retail segment.

In the second half of this talk, many pitfalls and caution areas are covered for investors in the Indian equity markets. Why should we not invest in SBI even though it is a generally good company?

In the first part of this talk, recorded in December 2020, the focus is on the set up. What are the prerequisites and mindset required for investing in the equity market? Who should not be investing?

When fiscal and monetary policy is loose or expansionary, there is always the possibility of inflation creeping into the economy. There are some indications already that we may be headed towards inflationary conditions.

It is useful to think of investment opportunities in the publicly listed space in terms of market capitalisation. “Market-cap” is nothing but the number of outstanding equity shares of a company multiplied by its share price.

Many people find finance a dry subject. It is true that finance can be difficult to write about and describe. Finance doesn’t lend itself to dramatic scenes in the way that the medical or legal professions do.

SEBI has been publishing monthly information reports on Portfolio Managers since 2013. These monthly reports are available to the public at the following link: https://lnkd.in/da8e9ay.

A good feature in the recent Fiscal Year 2022 Indian budget presented by the Finance Minister was the minimal change in tax rates for the year. In the past, many budgets have too frequently raised or lowered taxes for various categories of income as well as for different products and services.

The RBI, in a recent announcement, has proposed to allow retail investors to directly access its system for placing orders for government securities – “G-Secs” or “Gilts”.