Hellooo 👋
So much has happened this past year, we stepped into 2022 with the onset of Omicron and the Russia-Ukraine war. The budget added capital gains taxes and TDS charges to the already volatile and tumbling crypto industry. Global inflation and interest rate hikes were all followed by massive FII selling.
But phew 😮💨 the Indian markets have ended on an upward trend, after weathering the storm! Even though the SENSEX/NIFTY graph looks like it’s a rollercoaster, it trended upwards towards the end. There is a strong sense of positivity and faith in the Indian markets from investors and residents alike as the country has stood its ground amid global volatility, so yay!
‘Sup with the market?
Deadlines to keep in mind for this year 📝📌
Explaining Mutual Funds To A 5-Year-Old
So many new investors shy away from Mutual Funds because they don’t understand them and turn to “suggestions from their chachas/mamas” that tell them to invest in specific stocks without any real research. Simply because they “got a tip.”
New investors completely miss out on the fact that they will get to invest in multiple stocks through single MF schemes, that too hand-picked by experts in the industry, and that's insane! So I've decided to break down Mutual Funds in a way even a 5-year-old can understand so here goes: If an individual stock is a bar of chocolate 🍫 Mutual Funds are like a box of assorted chocolates. Instead of spending a lot of money and getting a big piece of a single type of chocolate, you can use the same amount of money to buy an assorted box and get a taste of many, thereby reducing your risk of being stuck with one, significantly.
And for those of you who hate chocolates, I’ve got another analogy for you! Remember this scene from YJHD?
Well then relate single stocks and FDs to Daal Chawal and Mutual Funds with the rest lol :P
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Mutual Panga
Mutual Funds are one of the most rewarding funds that require very little research effort from your end. How do you usually pick your funds?
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Lately in equities, both Mid and small-cap indices are trading at a discount to their historical averages!! If you have surplus money handy, then you could look at hiking exposure to these segments without too much deliberation. Here are our top 5 funds this month:
When it comes to debt mutual funds, the yields to maturity of many debt funds have risen. Hence it might be a good idea to lock in these higher bond yields, so you can look at good quality funds, with sovereign holdings with a duration of 3-4 years, ideally. Check out our top 5 below:
* These are our top picks based on performance as of 31st December 2022 ** Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus.***All the returns mentioned are for regular growth plans
Coolest thing I watched this month!
I just started watching “We Crashed”, the story behind WeWork and I was absolutely blown away! I had no idea about the founders' vision, the relationships that built WeWork and all the things that went wrong with a company that grew too fast, too soon. The icing on the cake is the fantastic performances by Jared Leto and Anne Hathaway, you simply can’t go wrong with this one. It’s on Apple TV+, you should definitely check it out if you like watching series that talk about how businesses were built/what went wrong with them. Remember the good old The Founder? That was a great watch too! :”)
Cocktail Pe Charcha
Is it too overwhelming to research & plan your investment? Say no more, we can personally guide you into mixing the perfect financial cocktail to manage your money!
Oh, what a year 2022 has been! 🤩🤩 Myself, Niyati & our entire team has personally had SO MANY things we experienced this year, and we’re eternally grateful for those: being called to my alma mater in Boston to give a talk, going for a team holiday to Goa, getting verified on Instagram and of course, starting this amazing newsletter! It’s been a whirlwind in terms of the markets, work and our personal lives, so here’s to another great year. So here’s to a great 2023, and bigger and better things to come from us! Stay tuned for our gyaan next week, cause we have an amazing announcement to make next week and you guys will be the first ones to know about it!
I'll write to you soon!
Sayali❤️
Hi
IDFC Banking & PSU Debt Fund Direct Growth's NAV was 20.46 on 7th July 2022 and now it's 21.01 (2.7 % absolute in 6 months).
How did you arrive 5.34 % in your table?