A.     SEBI raids offices and locations of Quant Mutual Fund suspecting front running in its schemes. B.   Grow an online mutual fund transaction platform for direct investors, committing fraud with its investor. Since yesterday morning these two news are making headlines across electronic and social media channels. Investors are worried how safe are their investments and what should they do now. We have received dozens of calls seeking our views on these news and action points. Lets discuss them one by one and likely impact on your investments. A.     SEBI raids Quant Mutual Fund Offices – Quant mutual fund has grown by over 1000 times in last seven odd years from the time they took over Escorts Mutual Fund in 2018. Quant’s assets under management (AUM) stand at over 93,000 crores. Quant practices momentum strategy very aggressively and have been quite successful over last 3-4 years. Peers in most categories lagged performance by a decent margi...

" The influence on stock markets are so numerous and so complex that no person has ever been able to predict the trend of stock prices with consistent success. – Sir John Templeton" India is all set to participate in fourth phase of parliament elections. While all political alliances are claiming success, capital markets seem to be thinking otherwise. This is the general perception now-a-days. Elections will be over in next three weeks and in just 23 days from now on 4 th of June we will have absolute clarity as to who is forming the government. Till then let’s analyse the probable scenarios that can emerge from the elctions and their likely impact on the economy and the stock markets: A.     BJP wins with thumping majority – It will continue the ongoing economic policies with increased pace and vigour which should bode well for the economy and the markets. Additionally it can take some debatable decisions that may cause unrest in certain sections of the society, ...

"The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Over last few days we saw friends observing Lent, Ramadan & Navratri. Today we are celebrating Ram Navami & couple of days later we will be celebrating Mahavir Jayanti. If something common can be drawn from all these is the most essential virtue of surviving and thriving in this world which is – Patience & Preservance. Be it observing fast during Navratri, Lent or Ramadan or life of Lord Ram or Lord Mahavir Jain – they all teaches us how patience & preservance penultimate in Nirvana. We all are working to survive, thrive and ultimately achieve the financial freedom or Financial Nirvana. And to achieve this nirvana we are investing in market related investment products. While in the long run most market linked investments achieve their true value but in short term it’s market prices are determined by many forces, some of which ...

  "The market does not trade upon what everybody knows, but upon what those with the best information can foresee" – William Hamilton Bank Collapse in USA - After the Adani saga it was the turn of some sensational news from so called robust but deteriorating financial system of USA. Collapse of Silicon Valley & other banks in USA are just the cases of cash flow mismatch and investment calls going wrong. By now you must have read enough on this. Still should you wish to understand what this story is all about, you may call your InvestmentMitra for the same. Thankfully SVB hadn’t financed any of the ventures from Adani group, otherwise pessimists would have declared doomsday for India as well. Adani Saga - Good part about Adani’s saga is that Adani as a group has interest across diversified industries and geographies. It has created a good mix of domestic and international debt. Adani group’s businesses are real. The promoters have prepaid a good amount of debt maturi...

Few years back, we have talked about Indian’s ability to adapt to any situation. Same is reflected the way Indian government & corporates have managed the situation from first lock down to second phase of lock down. Despite the health bedlams during second wave of corona and unprecedented number of fatalities that forced the second lock down, Indian economy kept moving. Increase in tax collection, power consumption, capacity utilization, consumer spending, employment numbers etc. confirms the uptrend and revival in the economy. Stock markets anticipates the future and its trends reflect the same most of the time. With improved sentiments and well supported by ample liquidity it has seen an unprecedented rally over last year. And this rally has spread well across all market segments. Though market valuations are high at this point of time when compared to long term averages but with earnings fast catching up, these valuations are coming back to normal. For those who have to inve...