PrimeInvestor - Articles and Reports

US Yield
Bonds & Deposits
Aarati Krishnan

What you should do about the US bond yield spike

Suddenly everyoneโ€™s talking about US bond yields surging. I see that the 10-year US government security is up by some 0.02 % to 1.57%. Why is this such a big deal?
While yesterdayโ€™s move isnโ€™t big, whatโ€™s big is the US 10-year Treasuryโ€™s 43 basis point rise in the last one month. This means that, a month ago, investors in long term bonds issued by the US government were getting 1.13% by way of interest and now theyโ€™re getting 1.57%. Thatโ€™s a 40% jump in returns from an asset that is regarded as one of the safest parking grounds for money in the world.

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coffee can
Short Takes
Srikanth Meenakshi

Wealth in a Coffee Can

Few books have caught the interests of the Indian investing public as well as the book โ€˜Coffee Can Investingโ€™ by Saurabh Mukherjea and others. Fewer still investment methods have found a fan following as the stock picking process recommended in this book.

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compound effect
Short Takes
Srikanth Meenakshi

Everything Compounds – “The Compound Effect” by Darren Hardy

โ€œThe Compound Effectโ€ by Darren Hardy explores the power of compounding in our everyday lives – our habits, our goals, our routines, our successes, and failures. The central premise of this book is simple enough – โ€œEverything compounds. It is up to us to choose the direction that it happens in our livesโ€.

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Recommendations
Vidya Bala

Prime Recommendation: 2 Debt funds to limit current market volatility

For those of you spooked by the continuing volatility in debt funds, our earlier article would have explained why these ups and downs prevail now. If you have money to be deployed or profits booked out of equities and waiting in the sidelines, you may hesitate to deploy it in this debt market condition.
To speak the truth, there are no categories other than overnight and liquid that are spared from the current volatility. However, if one looks at it on a relative basis, select funds from ultra-short, low duration and money market have held on, notwithstanding the see-saw.

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Markets
R Balakrishnan

The many roads to mis-governance

Many investors think of corporate governance as an esoteric concept that is good to have. But if is a little dodgy, they think it can be safely ignored, as it doesn’t affect them directly. They couldn’t be more mistaken.

Having discussed the origins of the concept of corporate governance, here are some key ways in which mis-governance at companies you own shares in can directly impact your returns.

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reliance industries
Stocks
Vidya Bala

8 things you need to know about Reliance Industriesโ€™ demerger plan

Reliance Industries (RIL) put out more details of the proposed demerger of its Oil to Chemicals (O2C) business that it announced earlier in 2020. The company now seeks approval from shareholders, creditors, regulatory authorities, Income Tax authority, and the NCLTs in Mumbai and Ahmedabad to demerge and set up a fully owned subsidiary for the O2C business.
This article will simply seek to explain the contours of this demerger and any immediate impact if you are a shareholder in the company, in the form of a Q&A.

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Outperforming nifty 50
Markets
B Krishnakumar

Outlook on indices that are outperforming Nifty 50

In our last article, we discussed the performance of sectoral indices. A look at the thematic and strategy indices on the National Stock Exchange (NSE) would be a logical follow-up to the previous post.
We will be using the same Point & Figure charting based methodology, that was used earlier, to identify the outperformers in relation to the Nifty 50 index.

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Short Takes
Srikanth Meenakshi

Welcome to Prime takes โ€“ Short-takes on assorted things

Weโ€™re happy to get started with a new, experimental section in the PrimeInvestor platform. We are calling it โ€˜Prime Cutsโ€™ โ€“ short essays published in an ad-hoc fashion (meaning, whenever we feel like ๐Ÿ™‚ ) about things we find interesting.

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debt funds
Mutual funds & ETFs
Vidya Bala

Why your debt funds have negative returns and what to do

Most of you are now comfortable with the fact that gilt funds can deliver negative returns in the short to medium term when rates move up. We have also written about it here. But the negative return prevalent in the past month or so, across most debt fund categories has troubled many of you.

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