Wise Investing

Nifty vs Gold Returns over 15 years (2006-2023) – Where to invest? Nifty and Gold are 2 investment options that are favorites among Indian investors but both the investments belong to different types of asset classes. Nifty belongs to equity asset class while Gold belongs to commodities. Inherently, both asset classes have different characteristics when it comes to evaluating the risk weighted returns Equities are known to perform better when the economy is doing good and businesses are booming with profits while commodities like Gold are known to preserve investment value and protect capital when the economy is weak. Interestingly, over a period of 15 years both the types of investments have given an almost identical average annualized returns of ~12% which in itself is a very good rate of return. To get that into perspective, a return of 12% compounded over 15 years, increases your invested capital by 5.5x or to keep it simple, ₹1 Lakh invested becomes ₹5.5 Lakh. Even though the retu...

MARKET SIZE The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1.0%. In terms of insurance density, India’s overall density stood at US$ 78 in FY21. Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore (US$ 317.98 billion) by FY31. In FY23 (Until October 2022), premiums from new businesses of life insurance companies in India stood at US$ 25.3 billion. In October 2022, life insurers’ new business premiums grew to Rs. 15,920.13 crores (US$ 1.94 billion), according to Life Insurance Council data. The gross first-year premium of life insurers increased by 12.93% in 2021-22 to Rs. 314,262.42 crore (US$ 40.06 billion). Between April 2021-March 2022, gross premiums written off by non-life insurers reached Rs. 220,772.07 crore (US$ 28.14 billion), an increase of 11.1% over the same peri...

 Common Investment Pitfalls to Avoid in 2023: 1.Not having a clear investment plan or strategy: It is important to have a clear investment plan that aligns with your financial goals, risk tolerance, and time horizon. Without a plan, it can be easy to make impulsive or emotional decisions that may not align with your long-term goals. 2. Not diversifying your portfolio: Diversification is a key principle of investing, as it helps to spread risk across a variety of asset classes. By investing in a diverse range of stocks, bonds, and other securities, you can reduce the impact of market fluctuations on your portfolio. 3. Chasing after short-term gains: It is important to resist the temptation to chase after short-term gains and instead focus on building a long-term, well-diversified portfolio. Short-term market fluctuations are often unpredictable, and trying to time the market can be risky. 4. Not considering the fees associated with your investments: Fees and expenses can have a sign...

Hey Readers let's start what actually work  Why You Lose So Much Money Trading The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. Many things cause new traders to fail. One of the main reasons that traders fail is because they don’t understand the math of capital destruction. The more capital you risk per trade, the quicker you will lose it in losing trades. Once your capital is depleted, it takes a larger return to get back to even than what you initially lost. A 10% loss requires an 11% return to get back to even A loss of 20% of your capital requires a 25% return to get back to even A 50% loss of capital needs a 100% return just to get back to where you started Risking 1% of your capital per trade puts you down 10% after 10 trades Risking 5% per trade puts you down 50% after 10 trades No matter how good you are, you can’t trade so large that a single losing streak is your last. If you risk too...

  Indian companies traded on NYSE, NASDAQ. Here are some of the Indian based corporations trading across the borders. The stocks list as American Depository Receipts, or ADRs on the exchanges. New York Stock exchange popularly know as NYSE is the world’s largest stock exchange by market capitalization of its listed companies. Hence, NASDAQ stands for National Association of Securities Dealers Automated Quotations. And it is the second largest stock exchange in the world. Here are the Indian companies traded: Dr. Reddy’s Laboratories – NYSE : Pharma & Biotech; Established in 1984. And listed in the year 2001. HDFC Bank Ltd. – NYSE : Banks; Established in 1995. ICICI Bank Ltd. – NYSE : Banks; Established in 1994 and listed in the year 1999. Axis Bank Ltd. – US OTC ; Partnership with Max Life insurance. Infosys Ltd. – NYSE : Software & Computer Services; Established in 1981 and listed in the year 1999 in NASDAQ which as eventually shifted to NYSE in 2012. MakeMyTrip Limited – ...

Many market watchers say that ultimately it is the profitability of the company which matters the most to the investors as they seek good returns on their investment There is a lot of buzz about market valuations and the net worth of a company among investors. Many market watchers say that ultimately it is the profitability of the company which matters the most to the investors as they seek good returns on their investment. But many start-ups are listed on bourses at high valuations based on earning forecasts. However, history shows that in the long run, only a few companies are able to deliver profit as per expectations, and the rest of the companies fall behind and are unable to provide handsome returns to the investors. That is the primary reason why most conservative investors prefer to invest in the most profitable companies to protect their investments from large drawdowns. list of India's 25 most profitable companies listed in stock markets for the Financial Year 2021-22. At...

  What Is The Credit Suisse Crisis? Who is Credit Suisse •        Credit Suisse has a domestic Swiss bank plus Wealth management investment banking & asset management  operations the Swiss National Bank has designated it one of the Switzerland global Systemically important banks  whose failure would cause “ Significant harm to the Swiss economy & financial system   Who controls the Swiss banking system? •        Credit Suisse is one of the oldest and most influential banks around the globe. While the bank is widely acclaimed and known for its influence and robustness, it has touched an all-time low. •         Ever since the ongoing year started, Credit Suisse’s share price has seen a 60 percent decline. Meanwhile, the credit default swaps (CDS) spreads on Credit Suisse debt have jumped to a 14-year high. •        The CDS spr...