portfolio strategy Archives - Page 8 of 19

Entering a stock at peak valuation? – 5 questions to ask

N V Chandrachoodamani / Stocks, Categories, Markets / April 11, 2023

When markets make merry, many stocks have seemingly compelling stories even for entering at peak valuation. And the market is fine with stretched valuations to accommodate such stories. In other words, every market-favoured stock appears to scream – buy me at any price.

But when challenges emerge, the same market starts reacting so sharply that investors who bought into the story midway start making losses. Yes, there isn’t a bigger disaster for stock market investors than earnings and PE multiples contracting together.

Entering a stock at peak valuation? – 5 questions to ask Read More »

Technical outlook – Is the worst over for the Nifty 50?

B Krishnakumar / Markets, Categories, Premium / April 9, 2023

The bearish view on the Nifty 50 index shared over the past couple of posts has played out, and the Nifty 50 index hit the target of 16,700-16,900 mentioned earlier. Now, after recording a low of 16,828 on March 20, the index has been on a recovery path. The key question, then, would be – is worst is over for the Nifty 50? As always, we will try to address this question using our favourite charting tools including the breadth indicators.

Technical outlook – Is the worst over for the Nifty 50? Read More »

Quarterly review – Changes to recommendations in Prime Funds and Prime ETFs

PrimeInvestor Research Team / Mutual funds & ETFs, Categories, Premium, Recommendations, Strategies / April 6, 2023

Prime Funds is our list of recommendations in equity, debt, and hybrid mutual funds that are worth investing in. Prime Funds narrows down your choices from the thousands of funds that there are, into a concise list of funds that span different styles. Prime Funds are selected based on performance, portfolios, and investment strategies.

In this quarter’s review, we have made limited additions to our list of Prime Funds but have some updates to give on performance of the existing funds. We also suggest buckets that are worth entering now. So do read it!

Quarterly review – Changes to recommendations in Prime Funds and Prime ETFs Read More »

Should you invest in GOI floating rate savings bonds?

Aarati Krishnan / Bonds & Deposits, Categories, Premium / April 4, 2023

Debt investors have been so starved of good returns lately, that any return above 7% now seems like a grand prize. This is why, after the government recently announced an interest rate of 7.7% per annum on National Savings Certificates (NSC) for the April-June 2023 quarter, there was much jubilation. Apart from warranting a fresh look at the NSC itself, this rate hike promises to significantly lift returns on a Central government-backed instrument – GOI Floating Rate Savings Bonds 2020 (GOI FRSB).

Should you invest in GOI floating rate savings bonds? Read More »

Why banking is a fragile business

R Balakrishnan / Stocks, Bonds & Deposits, Categories, Markets / April 2, 2023

The recent furore surrounding the failure of Silicon Valley Bank in the US has exposed that while banking is a favourite sector with stock market investors, the fragility of the banking business is far from well-understood. Banks are held up as the engines of economic growth. Whichever sector grows, the banking sector ultimately gains. Banks are also accorded a higher valuation than most sectors during bull phases. In good times, banks made up a 40% plus weight in our leading stock market indices.

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Prime Stock: An averaging call on this fashion player

N V Chandrachoodamani / Stocks, Categories, Premium / March 28, 2023

In February last year, we had issued a buy call on the stock of a premier fashion player housing a vast number of national brands. The steps this company had taken to expand its offering range, a return of focus on margins, and the consumption promise all propelled the call. the stock rallied handsomely as well, post our call.
However, owing to two factors, the stock has since given up nearly 40% from its high and is currently about 25% below our original call price.

Prime Stock: An averaging call on this fashion player Read More »

Prime Stock alert: Shifting this auto stock from HOLD to BUY

N V Chandrachoodamani / Stocks, Categories, Premium / March 28, 2023

Indian markets have corrected about 10% (Nifty 50) from the last peak in December 2022. But many stocks have fallen much more than the bellwether index. This has provided an opportunity to revisit some of our recommended stocks – to either identify averaging opportunities or move them to a BUY from a HOLD.

Premium article available only to subscribers.

Prime Stock alert: Shifting this auto stock from HOLD to BUY Read More »

Tax changes in mutual funds: How to manage your investments now

PrimeInvestor Research Team / Mutual funds & ETFs, Categories, Commentary, Strategies, Taxes / March 27, 2023

Changes in tax rules at the end of a financial year is not something that you routinely expect. And not when it is a sweeping change on taxation in your mutual fund! In this article, we are going to discuss the tax changes in mutual funds in 4 parts:
One, the changes effective April 1, 2023 and the categories impacted
The tax impact for you and what you can do to plan better
What should you do with your existing investments?
How should you plan your fresh investments?

Tax changes in mutual funds: How to manage your investments now Read More »

Low returns from debt funds? Know how to manage this risk!

Aarati Krishnan / Mutual funds & ETFs, Categories, Premium, Strategies / March 23, 2023

Low returns from debt funds? Know how to manage this risk!
After Silicon Valley Bank revealed large losses on its US bond portfolio that had eaten into its capital, there’s been a lot of social media outrage. Some folks are shocked that banks can make losses on a cast-iron investment such as US treasuries. Others seem to be appalled that Silicon Valley Bank is not alone and that many other global banks are in the same boat. This shows that investors at large have only a vague understanding of what rising interest rates do to bond portfolios.
You have also been bombarding us with questions on how interest rate risks can play out for debt funds, particularly target maturity, constant maturity and gilt funds. We try to address them here.

Low returns from debt funds? Know how to manage this risk! Read More »

Old vs New Tax regime: Tax Planning for 2023-24

Pavithra Jaivant / Taxes, Categories / March 21, 2023

If you’re a salaried employee then you’ve probably only recovered from the dilemma of old vs new tax regime and the process of collecting all the bills and proofs of investment to submit to your employer for the financial year that will end on March 31, 2023. So if you’re wondering why we are telling you about tax planning for FY 24 when you’ve only just emerged from under a small mountain of rent receipts and pharmacy bills – it is precisely to avoid the mad scramble that inevitably accompanies tax related deadlines that we advocate planning for taxes from right at the start of the financial year.
This gets even more important with several important changes proposed by Budget 2023 coming into force in FY 24.
In this article we will cover:
the key changes proposed by Budget 2023 that you should be aware of in your tax planning,
what you are giving up under the ‘New Tax regime’’
re-examining the role of ‘tax-saving’ investments in your portfolio and
the all-important question of old vs new tax regime

Old vs New Tax regime: Tax Planning for 2023-24 Read More »

How to pick stocks in 2023

N V Chandrachoodamani / Stocks, Categories, Markets / March 19, 2023

When we published our equity market outlook for 2023, we had mentioned where pockets of opportunity could be found. The correction the market is going through provides fertile grounds for stock picking. So here, we tell you how to pick stocks in 2023, in those pockets that we had noted. We do this using our Stock Screener.

How to pick stocks in 2023 Read More »

Debt funds for double indexation and high returns

Bhavana Acharya / Mutual funds & ETFs, Categories, Premium, Recommendations, Strategies / March 16, 2023

If there is one thing that has dominated the new fund offer space, and your collective interest, it is target maturity funds. Over the past year, the debt market has dealt with a swift rise in interest rates and we have issued multiple strategies to alert you on opportunities that presented themselves.

Debt funds for double indexation and high returns Read More »

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