Does the RBI have FOMO?
FinCocktail
A guide for youngsters to mix the perfect finance cocktail that tends to all their personal finance needs!
Hello!
In our reflections bulletin last week, Sayali mentioned that the Fed had increased the rates yet again. I guess the RBI couldn't deal with the FOMO and decided to join the bandwagon, increasing the rates by another 50bps to 5.9%! Despite the rate hikes, however, the inflation projection for FY 23 has been retained at 6.7%.
But the fear of a recession continues to linger. Major strategists have even warned the Fed to slow down the pace of rate hikes to prevent a market dysfunction. Like, don’t they already know that duh!???The Indian economy, however, continues to be resilient, and we hope that stability is here to stay.
BUT HOW?????In India, business activities are regaining momentum as reflected by the record-breaking rating upgrades secured by local companies. Not only that, domestic mutual funds bought equities worth ?15,645 crores in the secondary market in September -?the?highest?in three months?- offsetting pressure from foreign fund outflows. In addition, the festive season is around the corner, and analysis indicates that people are willing to spend more on discretionary products, travel, and hotels!?
Keeping our fingers crossed for a prosperous Diwali and New Year indeed!?
Keeping Up With the Stock Market
Hot News?
What the falling rupee, inflation and recession feel like.
Fin-Tip Of The MonthSayali, it is not news anymore that retail DEMAT accounts have touched the 100 million mark! But with the market being so volatile, is it really the right time to invest, you ask?
Complicated Answer:?Valuations seem high and the Indian market is seemingly expensive to enter at this stage, which means you will have to remain invested longer to realise the kind of returns seen in the past.
Simple Answer:?Why do you wanna try to time your entry into the market? Just stagger your investments and don't worry about making any short-term gains. Keep calm and invest on!
Mutual Panga?
FOMO or not, the rate hikes by RBI coupled with other factors have made everything from a bunch of dhaniya to loans expensive and we could all really use some amount of stability, albeit in our personal portfolios.
Shares of several mid-cap and small-cap companies registered sharp gains in the September quarter and have even outperformed their large-cap peers, as a result of strong buying, particularly by domestic, institutional and retail investors.
So all of that considered, here’s our carefully curated list of Mid and Small Cap funds along with liquid, ultra-short and low-duration funds for you to consider investing into.
* These are our top picks based on performance as of 30th September 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
How To Track Your Expenses Better
Three tips that will actually work!
Key Investing Lessons From Rakesh Jhunjhunwala
Our humble attempt to remember him by discussing his investment philosophy.
Query Of The Month
Ideally, your emergency fund needs to be invested in an asset that can be easily liquidated. As mentioned correctly, leaving it in a savings account essentially means that inflation is eating into your emergency fund. So, you can consider options such as short-term FD, liquid, overnight and money market funds to park your emergency fund corpus since they offer better returns compared to a savings account and can be easily liquidated.
New video series Alert!?
If you want to catch up on our finance gossip, we’d highly recommend you move over to our LinkedIn because we have an all-new video series out there for you! We’re talking entrepreneurship, education, stock market, investments, savings; just everything you would want to know about!!
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!
September was like a crazy rollercoaster, as wild and moody as the weather has been! While we wait to see how October pans out, watch out for our weekly bulletins for more on budgeting strategies for the holidays as festivities are around the corner. There will be a lot of talk about offers, discounts, gold, gifting and spending around the holidays. Stay safe, think before you spend and enjoy the holiday season!
Until next time,
Niyati