Letters to investors
Thoughts on investing
- Startup Wealth Concentration: A Risky Gamble for EmployeesMany startup employees unknowingly risk their financial future by over-investing and staking their entire financial future in their company. This approach is dangerous. Here’s why it’s a problem and how to protect yourself. The Concentration Trap Startup employees often: This creates a dangerous scenario where both income and wealth depend on one entity. And a… Read more: Startup Wealth Concentration: A Risky Gamble for Employees
- Introducing quantitative investingTraditional Investing: The Old Way For decades, investing has been largely a human-driven process. Professional investors, or “stock pickers,” would: While this approach has its merits, it’s limited by human capabilities. Even the most dedicated investor can only process so much information, and emotions can sometimes cloud judgment. Quantitative Investing: The New Frontier Now, let’s… Read more: Introducing quantitative investing
- Global diversification vs home country investingDiversification has long been hailed as a cornerstone strategy for managing investment risk and optimising returns. In this article, we will explore the performance of global markets over the past 30 years, starting just after liberalisation of the Indian economy. We aim to answer the crucial question: Is geographical diversification a prudent strategy, or does… Read more: Global diversification vs home country investing
- Should mutual funds be your default go-to equity investment option?Or in other words, is ‘Mutual Funds Sahi Hai’ really always true? Okay, I admit that the title goes against conventional beliefs that mass media and TV ads love to parrot daily. So, bear with me for a while to know the other side of the story. Let me tell you what neither the ‘Mutual… Read more: Should mutual funds be your default go-to equity investment option?
- How to account for market timing risk?We frequently get the following questions from new investors: Is the market too high to enter?Should I wait for markets to fall a bit?The reality is one doesn’t really know in which direction the broad market is going to go next. It is never necessary that markets have to fall just because they’ve risen a… Read more: How to account for market timing risk?
- Taxation – Mutual Funds [MF] vs Portfolio Management Service [PMS]Investing in the Indian financial market offers a plethora of options, with mutual funds and Portfolio Management Services (PMS) being two popular choices. However, there is often confusion surrounding the taxation of gains and hence post-tax returns in these investment services. This article aims to address the common misconception that Portfolio Management Services (PMS) deliver… Read more: Taxation – Mutual Funds [MF] vs Portfolio Management Service [PMS]
- Real Estate vs Stocks: Which Builds More Wealth?Investing is a journey, full of twists and turns, highs and lows. But the right choices can make all the difference. Investing is a crucial aspect of financial planning, and it is essential to understand the different asset classes available. Two popular investment options in India are real estate and equity investments. Two friends, Prem… Read more: Real Estate vs Stocks: Which Builds More Wealth?