PrimeInvestor - Articles and Reports

ETH, BTC, ETH vs BTC
General
Anush Raj P

Keeping up with the cryptos – Will ETH dethrone BTC as the largest crypto in 2023?

13.4 million% returns. I’m not joking. That’s the price move of Bitcoin (BTC) in the last decade between 2011 – 2021. Now you know why youโ€™ve been hearing so much about crypto in recent years and also the reason behind many millennials and Gen Z kids flocking towards these virtual digital currencies. In traditional finance, one has to take a 30% additional risk and invest in moderate risk equity mutual funds for an additional 5 -10% returns that equity might deliver over and above the risk-free rate.

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Stable coins
General
Anush Raj P

Keeping up with the cryptosย  – Are stable coins really stable?

Stable coins are simple crypto tokens that essentially mimic a stable currency like the Dollar, Euro, Pound, etc. According to coinmarketcap.com, there are about 10+ stablecoins that have a market cap of over $700 Million USD. Leading the pack are USDT (Tether USD) and USDC (USD Coin) with a market cap of $83 Billion USD and $48 Billion USD respectively.

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M&A
General
R Balakrishnan

What they donโ€™t tell you about M&A

In an M&A, company A buys out company B, triggering positive and happy noises in the market. Share prices of both companies jump in joy on the announcement. The news then gets digested and analysed.ย  Shareholders of both companies realise after a bit, that they should have sold out in the first few days after the announcement, rather than swallow stories of โ€˜synergiesโ€™, โ€˜cost savingsโ€™, โ€˜market leadershipโ€™, โ€˜inorganic growthโ€™ and other jargon that are usually peddled to sell mergers, in company releases and analyst reports.ย 

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update on Parag Parikh Flexi Cap and investing internationally
Commentary
Bhavana Acharya

An update on Parag Parikh Flexi Cap and investing internationally

In January, mutual funds investing overseas came up to a roadblock. As we had explained at the time on these curbs on international funds, Reserve Bank rules limit the amount mutual funds as a whole can invest in foreign securities. The cap stands at $7 billion for all foreign securities other than ETFs and $1 billion for ETFs. That $7 billion mark was close to being breached. And so, SEBI directed international funds to close off fresh subscriptions until a new limit could be worked out with the RBI. Please read our earlier article on this subject to understand the background.

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What the Budget means for bond investors
General
Aarati Krishnan

What the Budget means for bond investors

With the Budget done and dusted, most commentators have pronounced that it is a good Budget for stock markets but an awful one for bond markets. But in our view, whether you – as a bond investor – should celebrate or mourn post-Budget, will depend on your present portfolio allocation to bonds and the kind of bonds you own. Hereโ€™s how the budget affects your bond investments.

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sectors can benefit
General
PrimeInvestor Research Team

Budget 2022 โ€“ which sectors can benefit?

Several sectors can benefit from the above measures, but none to any major degree. So, we will restrict this article to a select few sectors that can benefit; these being sectors that we are also focusing on or watching for opportunities.

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Curbs on international funds
Mutual funds & ETFs
Bhavana Acharya

Curbs on international funds – what you need to know

At play here are the RBIโ€™s limits on overseas investments and SEBIโ€™s rules. Here, weโ€™ll list out the concerns you would be having over these limits, what they mean, and what you should do.ย 

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Interest rates, move out of equities
Categories
R Balakrishnan

Interest rates: Should you move out of equities?

Long-standing warnings by market gurus about the imminent popping of the stock market bubble seemed to come good, with interest rates for US treasuries spiking up sharply and triggering a fairly sharp correction in stock prices across the world. But why should stocks fall if interest rates rise and will such a rate hike impact India?

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The regulatory minefield on digital lending
General
R Balakrishnan

The regulatory minefield on digital lending

…RBI, facing fire from all sides, should set up a working group that has put up a white paper on the issues that face โ€˜digital lendingโ€™. I recall reading some months ago that there were 1100+ lending apps and that nearly 600 were illegal.

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