Brijesh Damodaran

Articles By Brijesh Damodaran

87 Articles

Why sticking to asset allocation is even more important now

Any money which we need within 18 months should be placed in instruments which are liquid and do not have any volatility or credit/default risk.

When one invests in the asset classes of equity, debt, gold, bonds, the most important thing is portfolio construction.

Your Money: Asset allocation and capital allocation — know the difference

The year 2020 is not going to be a year to forget. Understanding the nuances and re-learning the basics is a good thing to do.

Your Money: Do you have a cashflow for next 12-18 months?

In a single day, there was a double-digit fall of 13.2% in Sensex—unprecedented in the past 16 years.

Having a cash flow for the next 12-18 months, should be your first and foremost critieria.

Stock Market Investment: You cannot afford to be jittery in this market

In order to create wealth, you need to have a process, a method and most importantly, patience

Sensex, Yes Bank, Investment Policy Statement, market volatility, financial markets, long term bonds, Balanced Advantage Funds, equity funds

Your money: Do not stop your good investment habits

The lock-in period of three years from the investment date in ELSS is both a boon and a bane. It is a boon because ELSS allows you to withdraw only after completion of three years.

Investing in any one one of these or a combination would have saved taxes based on the tax bracket you are in.

Here’s how three-bucket strategy can lead to wealth creation in the long term

Even in 2008-09, when the mid-and small-cap returns went south by more than 40%, had you stayed true to the investment process, the point-to-point returns would have delivered a double digit return in the 10-year period.

Investors must look at the three-bucket strategy to create wealth in the long run in a disciplined way.

How emotional quotient plays a big role in the investment journey

Data is our friend and as one can notice there is a huge divergence in the returns in the short time frame.

investment journey, S&P BSE Sensex, investment returns, 30-stock Sensex, Sebi, market capitalisation, small cap funds, investments in 2019

Equity investments: Why near-term returns should not be your benchmark

So the question to be asked is: Can the investments in the asset classes (equity/ fixed income/ gold/ real estate/ unlisted companies, etc.,) help in reaching the goals and milestones set ?

Do you ask the right question before deciding on investing?

And these questions should then lead to the asset allocation and the expected returns on the investment. But invariably, the first question one asks is: What is the return I can get?

question, personal finance, savings, equity, debt, market, investment

Investment planning: How to make your portfolio work in troubled times

In 2019, till date, the BSE Sensex has delivered an absolute return of close to 10%. But the individual portfolio is not reflecting the same.

Investing in debt funds? Know your risks

The most important factor to be considered about the issuer of debt, is the ability to repay the capital, and also the interest payouts.

As an investor, it is important that we know what exactly constitutes risk and what is uncertainty (Illustration: Rohnit Phore)

Smart Investing: Look at the long term for good returns

Investors wonder whether it was a correct decision to invest in equities.

Ignore poll impact on markets, stick to asset allocations with milestones for exits

As an investor, are you looking for trading gains or for creating wealth? Does it really matter what was the Sensex levels and the stock prices before, during and after the elections? It does matter if you are a trader and de

Getting negative returns from markets? Stay invested for the long-term

The last few months have tested the patience of investors investing in equity and fixed income, especially bonds. The double-digit returns in equity markets of the year 2017 looks like a distant past. Today, investors are con

stock markets, investments

Election year: What’s your poll strategy?

What is important is you and how your investment behaviour with respect to asset allocation, cash flow is put in place to mark the volatility of the markets

election strategy, Election year, Fixed investments, liquidity, RERA, real estate

Stock Markets: Investing lessons learnt in 2018

Due weightage must be given to asset allocation and time horizon to tide over volatility in the stock markets.

Mutual funds: Don’t let market volatility put a stop to your SIP

One of the most important points to note before embarking on the investing journey, especially in the equity markets, is that market movements must not make you emotionally weak and not bring any doubts to the mind about the

Volatile markets – Why sitting tight is the best option

Investing with a strategy in place and looking at the big picture is more important than tracking the Sensex and market returns on a daily basis.

equitry market, share market, industrial sector

Stock market: A decade of Diwali returns

What would have been the Sensex return if investment was in the Diwali of 2008? For this time period, the Sensex delivered a return of 14.54%, much above the 10% return noticed for time horizons of three, five and seven years

Markets have corrected by over 20%: What is your strategy now?

For income generation, the products and asset allocation would be towards more predictable and lower standard deviation assets, which will have more predictable nature of returns.

Asset allocation key to handling market risks and volatility

Having a combination of liquid, multi-cap and large-cap portfolio over the investing horizon should be the approach to reap long-term returns.

Improper asset allocation is biggest impediment in wealth creation

If you have invested money recently, it is not the time to pull out or exit. Try to understand, why are you investing and what is the expectation you have from the investment. And then re-jig, if required.

SIP investments in ELSS more volatile than NPS in long term

National Pension Scheme (NPS) as a retirement planning tool has been gaining traction since it was thrown open to all classes of investors in July 2009.

Investment in NPS less volatile than mutual funds – Here is why

NPS accumulates savings into a subscriber’s personal retirement accounts (PRA) while he is working. On retirement, 60% of the accumulated corpus is paid out as lump sum to the subscriber.

Mutual Funds: How recategorisation of MF schemes impacts mid and small-cap funds

In the current year, investors are noticing a strange thing in the financial services space. While the 30-share Sensex is hitting a new high , the portfolio of most investors is not reflecting the same growth.

Investing in stock market? Know the difference among volatility, risk and uncertainty

Unlike the last two years, the markets are not really on a roll this year. Crude oil prices are inching up, there’s a looming US-China trade war and the US Fed is reducing its balance sheet.

stock markets, investments

Why liquid funds are perfect for temporary parking of funds

One should not confuse liquid funds with debt funds. Liquid fund is a part of the universe of debt funds. Liquid funds do not take credit calls or interest rate calls, which debt funds do

As the name suggests, liquid funds mean funds in which the amount invested can also be redeemed with ease.
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