When it is about equity investment, it is natural for investors to look for investments consistent in their performance with reasonable stability over a period of time. In such a scenario, investors tend to prefer investing in large-cap mutual funds.
When it comes to equity markets, investors often use the terms ‘blue chip companies’ or ‘blue chip stocks’. A blue chip company is a well-established, fundamentally and financially strong with a proven track-record of performance. Such companies are considered more resilient to adverse economic events and minor hiccups in the financial performance and are thus considered relatively safe and stable for the investors.
One of the expectations from fixed income asset managers this time of the year is their annual forecasts on inflation, repo rate or government bond benchmarks. Forecasting typically involves answering the following question: “Given the data we see today, what will be the value of a variable at a period”. It is often said that forecasting exists to make astrology look good.
Green shoots in investor preference seen
The Reserve Bank of India's (RBI) monetary policy committee voted unanimously to keep the repo rate and reverse repo rate unchanged while voting 5-1 to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy.
Below are the key RBI’s estimates on evolution of growth/inflation trajectory into the next year compared to their previous forecasts:
We are currently in a phase of heightened market volatility led by a confluence of factors. Some of the ongoing concerns leading to nervousness in the markets are inflation remaining higher for longer, higher crude & gas prices and an accelerated rate hike cycle by the Fed. It hasn’t helped matter that the valuations around the globe have been higher than long-term averages. However, volatility is nothing new to equity markets and nor is anxiety around a set of factors which threaten to pull the markets down.
I am not a cook, but watching people cook, especially in a contest, is surprisingly captivating. Have you ever wondered that in a multitude of these Masterchef type contests, there would be a set of amateur chefs who would be given the same type of "wonderful" ingredients, but each would make a significantly different dish out of them, which would then lead to either win or lose in their pursuit of being the best Masterchef.
For some, any talk of financial independence for women may conjure up thoughts of feminism. However, a closer look at the unique issues and circumstances that women typically face provides a compelling financial and economic logic for womenʼs financial independence. That is why it is so important for all people, especially women, to know why they need to be financially independent and how they can achieve financial independence.
The Reserve Bank of India's monetary policy committee today (April 08, 2022) voted unanimously to keep the repo rate and reverse repo rate unchanged at 4.00% & 3.35%, respectively. The policy stance remained accommodative, but the RBI added the guidance that it will focus on withdrawal of accommodation to keep inflation within target, which can be considered a signal of normalization. The monetary policy statement or the press release contained no mention of the calibrated or gradual withdrawal of accommodation which has punctuated the RBI policy since the ebbing of the pandemic.
The Monetary Policy Committee (MPC) conducted an off-cycle meeting between 2nd and 4th May 2022 to reassess the evolving inflation-growth dynamics post the April MPC meeting & took the following actions:
