Money with Monika
Money with Monika
Nov 19, 2020
26: How to avoid behavioural biases while investing
Play • 10 min
While neoclassical economics postulates that individuals are inherently efficient, when it comes to investing, pragmatism and logic are often overshadowed by what is referred to as behavioural biases. These biases push investors towards making errors by making them take decisions based on impulse and perception rather than factual analysis. Some common biases include loss aversion bias, personalization bias and herd mentality. Tune in to this episode of Money With Monika Season 3 to understand how these behavioural biases work and how one can rein them in.
Business Standard Podcast
Business Standard Podcast
Business Standard
Market Wrap, Jan 27: Here's all that happened in the markets today
The domestic benchmark indices not only extended their losing run to the fourth day on Wednesday but also turned negative for 2021. Both Sensex and Nifty closed nearly 2 per cent lower on the back of weak global cues and FII outflows. Meanwhile, investors also chose to book profits ahead of the Union Budget on Monday, February 1. Analysts said high valuations also spurred profit taking but believe that such profit-taking is healthy and desirable. While the Q3 earnings season has been largely in line with expectations, analysts believe this was priced in and going ahead, they are concerned about lower margins. The BSE barometer Sensex plunged 938 points to 47,410 while its NSE counterpart Nifty slipped below the 14,000 mark to end at 13,968, down 271 points. The volatility remained elevated ahead of the January F&O expiry on Thursday. India VIX jumped 4.93 per cent to 24.39 level. In the 30-pack Sensex, only six stocks ended in the green. Axis Bank fell over 4 per cent ahead of its December quarter numbers and was the top index loser, followed by Titan, IndusInd Bank, HDFC Bank and Dr Reddy's that shed 4 per cent each. on the other hand, Tech Mahindra and ITC were the top gainers. The broader market trend was mixed with Nifty Midcap 100 and Nifty 500 indices down 1.58 per cent and 1.68 per cent, respectively, while Nifty Smallcap index added 0.15 per cent. Sectorally, only the Nifty FMCG index rose while all other indices ended in the red, with private banks and financials leading the losers. In stock-specific developments, shares of Reliance Industries fell for the third day today, down over 2 per cent. In the three days, it has shed 10 per cent. While RIL's Q3 PAT jumped 12.5 per cent yearly, analysts were concerned about the lack of transparency levels across businesses. Meanwhile, shares of Rane (Madras) rallied 14 per cent after a solid performance in the December quarter. The firm reported a consolidated net profit of Rs 5.50 crore in the December quarter on the back of strong revenue growth against a loss of Rs 7.20 crore in the same period last year. Meanwhile, in other news, an ICMR study on Covaxin showed a comparable neutralization activity of the vaccinated individuals against UK-variant strain. Lastly, an update on the global markets Europe's share indexes opened lower on Wednesday, while investors focused on the U.S Federal Reserve meeting and US tech giants' earnings. The STOXX 600 was down around 0.3% while London's FTSE 100 was down 0.2%. Germany's DAX was down 0.5%. In the Asian session, shares were hurt by some profit-taking, as investors grew wary of stretched valuations. Futures on the S&P 500 Index decreased 0.2%, indicating a flat-to-negative start for Wall Street indices.
4 min
Free Podcast Audio | Online Podcast News List | Podcast Music - News18
Free Podcast Audio | Online Podcast News List | Podcast Music - News18
News18
News18 Daybreak | PM Modi Greets Indians on Republic Day, All Eyes on Parade Amid Covid-19 Restrictions, Delhi Cops Shut Signature Bridge After Some Tractors Tried to 'Forcefully' Enter and Other Stories You Need to Watch Out For
PM Modi Greets Indians on Republic Day, All Eyes on Parade Amid Covid-19 Restrictions Prime Minister Narendra Modi wished Indians Happy Republic Day ahead of the parade amid Covid-19 protocols. The national capital is under high security as the city would be witnessing two big events--Republic Day celebrations and a farmers' tractor parade. The city has been brought under heavy security cover with the deployment of thousands of security personnel in central Delhi and several border points. 'Saluting Farmers Who've Made India Self-reliant': Kovind's Tribute to Crop Growers Before R-Day Tractor Rally Paying tributes to the farmers, President Ram Nath Kovind on Monday said every Indian salutes our farmers who have made our vast and populous country self-reliant in food-grains and dairy products. He said that despite adversities of nature, numerous other challenges and the Covid-19 pandemic, the farmers sustained the agricultural production. Padma Awards 2021: Shinzo Abe, SP Balasubramaniam, Tarun Gogoi Among Recipients | Here's Full List Former Japanese Prime Minister Shinzo Abe and music legend SP Balasubramaniam among Padma Vibhushan winners this year, while former Assam CM Tarun Gogoi and prominent Shia preacher Maulana Kalbe Sadiq will be honoured with Padma Bhushan. Delhi Cops Shut Signature Bridge After Some Tractors Tried to 'Forcefully' Enter from Loni Border Side Hours ahead of mega tractor rally called by farmers protesting against three new farm laws, Delhi's iconic Signature bridge was on Monday closed by police after some tractors "forcefully" tried to enter the national capital from Loni border side and allegedly broke the barricades. A mild force was used by the police in order to control the disturbance caused. JD(U) Launches Monthly Mouthpiece 'Sandhaan', First Major Political Party in Bihar to Do So The ruling JD(U) in Bihar on Monday became the first major party in the state to have its own mouthpiece monthly published both in Hindi as well as English. The inaugural issue of 'JD(U) Sandhaan' was launched at the party's state headquarters here by its national president RCP Singh. Nitin Gadkari Approves Proposal to Levy 'Green Tax' on Old, Polluting Vehicles Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a 'Green Tax' on old vehicles which are polluting the environment. 'Proposal will now go to the states for consultation before it is formally notified' said Ministry of Road Transport & Highways. ISL 2020-21: Ahmed Jahouh Blunder Gifts Late Equaliser as Chennaiyin FC Hold Mumbai City FC to Draw A terrible late error in the box by Ahmed Jahouh rewarded Chennaiyin FC's perseverance and an improved second-half display as they held Mumbai City FC to a 1-1 draw in the Indian Super League (ISL) 2020-21 at the GMC Stadium, Bambolim on Monday. However, the result meant the Islanders extended their unbeaten run to 12 games, matching FC Goa's record.  Varun-Natasha's Wedding Pics Go Viral, Here's How Bollywood Congratulated Newlyweds On Sunday, in Alibaug, Varun Dhawan tied the knot with his childhood friend Natasha Dalal. The couple made their first appearance as a married couple amid flashing lights of the paparazzi. And as usual, they were showered with love and wishes from the movie industry, with the celebs pouring their blessings to the newly married couple. First among those was Varun’s first director, Karan Johar who launched him in the industry with Student of the Year.
10 min
Zerodha Educate
Zerodha Educate
Zerodha
An asset allocation framework for debt mutual funds with Suyash Choudhary
All the issues in the debt mutual fund space in the past 3 years have highlighted just how important it is to get your debt allocation right. But unfortunately, a lot of investors spend a lot of time thinking about equity in when deciding their asset allocation but take the debt part of the allocation for granted. And this has come back to haunt a lot of investors ever since the IL&FS crisis.  In the previous episodes, we have spoken at length about why you need debt in your portfolio and the right way to think about debt. But we figured investors need a framework on how to go about getting their debt asset allocation right.  So, we caught up with Suyash Choudhary, the Head of Fixed Income at IDFC Asset Management. In this absolutely brilliant conversation, Suyash talks about: * How his career in the markets started * How the Indian debt markets and debt mutual funds have evolved throughout his career * The core reason for having debt in a portfolio * Core and satellite approach to debt asset allocation * Pitfalls of diversification in debt * Is it wise to rely on common rules of thumb when investing in debt * Should investors invest in credit risk or high yield funds? * Biggest lessons for investors in the last 3 years * How should savers and retirees think about the current challenging low-interest rate environment? * His personal investing philosophy, investing mistakes, lessons and favourite books You can check out these previous conversations on investing debt:   Understanding what's happening in the debt markets with R Sivakumar, CIO of debt at Axis Mutual Fund Should you invest in debt mutual funds with Arvind Chari of Quantum Mutual Fund If you have any questions on the topics discussed in the episode, do post them here. You can also check out the Varsity module on personal finance to learn more about the basics of debt mutual funds
1 hr 10 min
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