PrimeInvestor - Articles and Reports

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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Mutual funds & ETFs
Bhavana Acharya

Should you invest in balanced advantage funds now?

If you watched any cricket in the past few days, you could not have missed the ad from a prominent fund house, extolling the virtues of (their) balanced advantage funds. Whether its AMCs, fund managers, media, or your neighbour, the advice is that the best way to manage current markets is to add a balanced advantage/dynamic asset allocation fund to your portfolio. Should you?

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GME
General
Srikanth Meenakshi

GME and Investors in India

Are Indian investors starting to buy into the GME hype? How risky is it, and what could happen with this company’s stock? The background story and how it is playing it currently.

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corporate governance
Stocks
R Balakrishnan

Why corporate governance matters

Corporate Governance. Many investors, when they hear the term, visualize a theoretical concept that has to do with boring things like morals and ethics but doesnโ€™t directly affect them. But corporate governance has a direct impact on the wealth you take home from investing in equities. Here we attempt to explain why.

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debt fund
Recommendations
Vidya Bala

Prime Recommendation: A debt fund for the new rate scenario

Two events have set the stage for a rise in yields, whether the RBI pauses or hikes rates. One, a few weeks ago, the RBI closed the tap that pumped liquidity into the system. That meant no more excess supply of money. This caused an immediate rise in short-term yields, causing mark-to-market losses in some funds over a week or two. In just 2 months, the 3-month government bond moved from 2.9% in December beginning to 3.36% now. This is a sharp move for a shorter tenure bond.
Two, Budget 2021 has decided to retain its market borrowing at Rs 12 lakh crore, same as the pandemic-hit year. It has also provided many novel measures to tap the debt market for infrastructure financing. The 10-year gilt yields climbed sharply as the budget was announced.

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General
PrimeInvestor Research Team

Budget 2021 โ€“ Whatโ€™s in it for you?

Fiscal spending and debt funding appear to be the primary gears that Budget 2021 plans to use in full throttle – in the hope of reviving the economy.
The big picture first. Fiscal deficit at 9.5% of GDP for FY-21 will not ease any time soon. It will take a slow path to reducing to 4.5% by FY-26. What does this mean? The thus-far fiscally-prudent government has decided it is necessary to spend to spur growth, with a slow glide path to fiscal prudence. And the stock markets love this!

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Research Reports
PrimeInvestor Research Team

Quarterly review โ€“ changes in Prime Funds, our mutual fund recommendations

Our aim in reviewing the Prime Funds list every quarter is to ensure that we donโ€™t miss any good opportunities that are coming up and we are not holding on to funds that are slipping. When we remove funds from the Prime Funds list, we tell you exactly what to do if you have invested in these funds.

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