Most popular articles of May

The most read articles on Morningstar.in in the month of May 2020
By Morningstar |  02-06-20 | 
 

#1. How to make easy money work for you

If we earned the money, we are more likely to put it to practical uses. If it was won, found, or given to us, we are more likely to spend it for enjoyment. If it was the result of a tragic loss, we may avoid it or even give it away. Mental accounting is a shortcut that our brains use to try to make sense of things and assign meaning and order to the world, but it is often emotionally driven and can lead to illogical, or even damaging, decisions.

#2. 3 investing lessons you must never forget

Never underestimate the top down. Invest knowing that nothing lasts forever. What is true today may not be the case 15 years down the road. A contrarian philosophy is never built out of thin air. Never focus on the cheap price but aim to get the fundamentals right. And lots more…

#3. The home loan moratorium extracts more from you

While everyone is thrilled that they get a break in their home loan payments, they must remember that there is never a free lunch. At least not in financial services. Here is a breakdown of the numbers. You will end up paying a tidy sum to avail of this benefit.

#4. Retirement Planning is more than just saving

Retirement is not only about getting that coveted sum of money. Retirement is not a destination. Retirement is not a one-time event. Retirement is not a homogeneous phase. You need to approach it from different perspectives: existential, financial, emotional. There is the psychological and behavioural distancing of oneself from the workforce. But there is also the reality of new social roles, expectations, challenges and responsibilities. You must have clarity on what you are retiring from, and what you are entering into.

#5. Where Vallabh Bhansali sees investment opportunity

Diamonds will have no value if there is an abundant supply. It is the rarity that adds value. What are the rare qualities in the company you want to invest in? It could be the brand, capital efficiency, excellent management from the standpoint of integrity and capability, a well thought out business model, and so on and so forth. Here is some of his wisdom.

#6. How to build a debt portfolio

When it comes to debt, there are two aspects you must never lose sight of: Safety and Liquidity. The prime aim of a debt fund is capital preservation and stability to the overall portfolio. It is supposed to make it easier to stomach risk elsewhere in the portfolio. Investors can inadvertently sabotage their portfolios by trying to juice returns by adding risky debt.

#7. The need of an Emergency Fund

An emergency can be emotionally very stressful. Don’t add financial stress to it. Be prepared, as far as possible. Put in the hard work to come up with a number customized to your life. Depending on whether or not other family members are employed, you can look at 6 to 12 months of basic living expenses. Here is how to get started.

#8. How to make money in gold mining stocks

When it comes to mining stocks, there are multiple factors that tend to play havoc with the stock price; much more than what regular businesses face. But if you possess the stomach for a rocky ride and the fortitude to break away from the herd, it could be a rewarding investment. Here’s what to be aware of.

#9. Will sin tax be the way going forward?

Just because the morality may repulse you, don’t assume the return will. A lot of these stocks - like tobacco and defense - tend to exhibit a high degree of profitability, consistency in their earnings streams, and wide moat practices, so they're relatively insulated from new competition. The sin stock anomaly notwithstanding, these stocks exhibit quality and low volatility. Casino stocks, on the other hand, are high volatility and very cyclical. And historically, have been one of the "sin" sectors that have underperformed over time, relative to their peers in that universe.

#10. 3 funds get downgraded

While we constantly rate and review the mutual funds that we have an analyst rating on, we think that it's important to revisit our ratings in light of the current market situation especially with respect to portfolio liquidity and redemption pressures. As a result, three debt funds got downgraded.

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