Author: Vineet Rajani

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.

 

Do we really need a diversified portfolio?

Many people argue that correlations among asset classes have increased post-Covid and diversification is not needed anymore.

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
2
15 Oct 2024
 

Relief or worry? The share of food spending is declining among Indians

For the first time in modern India, the average household expenditure on food has fallen below 50% of the monthly expenditure. According to a survey on the changes in India’s food consumption, food purchases made 53% of the total expenditures rural households made in 2011-12, which came down to 46.5% in 2022-23.

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
16 Sep 2024
 

Is it life-as-usual for the world despite the Russia-Ukraine war?

A group of the world’s top economic experts in Europe and the US were polled for their views on the global economic fallouts of Russia’s invasion of Ukraine in 2022, and most of them had similar views as most of us – high inflation, slow growth, challenges to food and semiconductor production, shipping woes, and […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
10 Sep 2024
 

SEBI revises F&O eligibility norms

SEBI recently updated the MQSOS, MWPL, and ADDV limits for stocks to enter the F&O segment

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
2
04 Sep 2024
 

The Economics of Olympic Games

It took the city of Montreal 30 years to pay off the debt it had taken to host the 1976 Olympics. Soon after hosting the game, Montreal declared a large deficit. This was the first time that the wider economic impact of hosting the Olympics was being discussed. Why do countries host the Olympics? Is […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
06 Aug 2024
 

How can notional losses hurt in reality?

Did you see this headline last week? Norinchukin Bank, a Japanese bank, is selling $63B worth of US and European Government Bonds. The reason is that the bank wants to stem losses from low-yielding foreign government bonds it has purchased in the aftermath of Covid. But hey, if they held the bonds until maturity, there […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
26 Jun 2024
 

Indexing the new age

Electric Vehicles (EVs) are becoming mainstream, and seem to be a stable EV ecosystem emerging in India. NSE Indices recently launched the Nifty EV & New Age Automotive Index to track this space. The “New Age” component in the index name is meant to accommodate any new technologies that might come up in the future.  […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
2
20 Jun 2024
 

Can India Learn From Japan’s Population De-Growth?

An abandoned village is one where no one lives. Throughout history, people have abandoned their villages for various reasons—the threat of wild animals, flooding, dam-building, forest fires, wars, etc. Today, Japan probably has the highest number of abandoned villages.  The most frequently cited reason I found on the internet is Japan’s declining population. As older […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
12 Jun 2024
 

What’s the PRC Matrix of Debt Funds?

Debt funds are usually considered to carry lesser risk than equity funds. In fact, many believe that funds cannot give negative returns simply because they invest in debt instruments. However, interest rate risk, liquidity risk, and credit risk are all real risks carried by debt funds. The presence of risk indicates the possibility of a […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
18 May 2024
 

Can a Central Bank Devalue its Currency on Purpose?

My politically opinionated father asked me worriedly, “Why has the INR depreciated since the current government took over?” I first said, “Go back a little farther, and you will see that the INR has been depreciating, irrespective of who was running the government.” But is that a bad thing? The words “depreciating” or “falling” INR […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
1
24 Apr 2024
 

Give me some sunshine; give me some capital

My 20-year-old cousin took a fancy to the stock market recently. I would like to take credit for his excitement, given my employment at Zerodha, but I am aware he is just joining the trading wagon with his friends and social media connections. I am glad that he is curious about concepts. He asks me […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
09 Apr 2024
 

Underlining the Underlying Exposure

The RBI requires anyone trading in currency derivatives to have an underlying exposure to forex. It seems many market participants were not aware of this. So, the RBI recently reinforced this requirement through a recent circular. The deadline to ensure that users participating in currency derivatives have an underlying exposure was set at 05 April […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
5
05 Apr 2024
 

Why Contribution Profit is a Big Deal?

Let’s say you want to put up a lemonade stand at a college fest. The rent for this stand is 10,000. The cost of making a lemonade with lemon, syrup, soda, and ice is 25. You plan to sell it for 50 per glass. How many lemonades should you sell to make profits or break […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
1
16 Feb 2024
 

Things to look for in the (Interim) Budget

The Government of India will present the Interim Budget on 01 February 2024. Why is it an Interim Budget and not an Annual Budget?

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
24 Jan 2024
 

Nestle India split its shares. Will MRF ever split?

Nestle India split its stock in a ratio of 1:10 on Jan 05. Each share of a whopping ₹27,000 converted into ten shares of ₹2,700 each. At ₹2,700, the shares became a lot more attractive to a larger set of investors, especially retail investors. The move will perhaps improve the stock’s liquidity. That begs a question – why can’t MRF consider a split?

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
05 Jan 2024
 

What could ruin the party for an all-time high Nifty?

In the blink of an eye, the year 2023 is wrapping up. After gaining about 5.5% in November 2023, the Nifty 50 index is hovering near its all-time high. There will be many bull case scenarios suggesting a rally higher up. But let’s look at the bear case and figure out the factors that can potentially drag the markets down.

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
01 Dec 2023
 

The Dark Side of the Big Fat Indian Wedding

Beti ki shadi se bada baap ka kya farz hota hai? A father’s biggest duty is his daughter’s wedding. Two fathers, one spending ₹2.5 Cr and the other spending ₹6 lacs on their respective daughters’ weddings, make this statement in an episode of Made in Heaven on Prime Video. The show is about big fat […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
21 Nov 2023
 

How to forecast the economy? Economic Indicators could help

What are Economic Indicators? A basket of factors that help forecast how an economy will perform in the future. Economic forecasting is used by Businesses to plan investments and operations and estimate performance Investors to adjust portfolio allocations and expected returns Govt and regulators to make policies for the public, businesses, and investors Consumers to […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
17 Nov 2023
 

Hope is not a strategy

A few years ago, I came across a microcap real estate stock. It got ownership of hundreds of acres of land parcels in multiple cities as part of a PSU restructuring. The plan was to develop residential and commercial buildings on these land parcels. Given the value of the land it owned, the stock looked […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
11 Oct 2023
 

Stock market scams and how to avoid them – How the elderly are scammed?

Remember Yes Bank’s AT1 bonds that were written off when the RBI forced a reorganization of the bank in 2020? Many elderly people lost their retirement savings in AT1s. AT1 bonds are pseudo-equity bonds. They pay higher coupons than regular bonds or FDs. However, when a bank suffers losses, AT1 bonds are the first ones […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
07 Oct 2023
 

Stock market scams and how to avoid them – Front Running / Insider Trading

Picture this. You work at a large listed public company. This company will announce its latest quarterly results tomorrow. You already know the results because of your role in this company. You know the results will be received positively by the market. So you buy some shares of your company today to sell it after […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
06 Oct 2023
 

Stock market scams and how to avoid them – Phishing Trading Accounts

“Click here to win an iPhone for INR 1,000!?” “Your broking account funds are blocked. Click here to update KYC.” “Beware of frauds. Secure your credit card XXXX on this link.” Ever clicked on messages or emails like these? They will usually have a link that will take you to a homoglyph website. A homoglyph […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
05 Oct 2023
 

Stock market scams and how to avoid them – Pump and Dump

Several stocks have given 1000% returns within a few months. Who could have predicted that kind of rally for any stock? Hardly anyone. Most rallies are a surprise. However, many people do predict massive gains for various stocks. Several channels and groups on YouTube, WhatsApp, and Instagram make tall predictions. This ₹20 stock will go […]

A CFA by qualification, Vineet writes about fundamental analysis, macroeconomics, and portfolio management.
0
04 Oct 2023