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Books Economy Finance Investment Strategy

Economic Moats Part II

Setting the Context When it comes to investing money – the primary goal is to identify companies that provide you the highest return on capital. Now there are companies which shoot up in stock-price only to come plummeting down, there are hot-picks by business channels every day, month and quarter. But every stock has it’s […]

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Finance Fixed Income

Yield Curve Theories

Article collaboration with: Vrushank Setty Setting the Context: Understanding and being able to predict how the Yield Curve is going to evolve over time, would enable investors to make better informed decisions for their capital allocations. In academia and Finance literature, certain popular theories have emerged which take a shot at explaining the behaviour of […]

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Finance Investment Strategy

Distressed Securities

Setting the context This week, we will be going over a particularly interesting kind of Hedge Fund Strategy called Distressed Securities. Did you know institutions which invest in such companies are called “vultures”? You’ll find out why below 🙂 Introduction As the name suggests, distressed securities belong to firms that are “distressed”, that is, they […]

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Finance Investment Strategy Portfolio Management

Introduction to Asset Allocation – Part IV

Guest Post – Tanumoy Hazra Why is it so important to determine an Asset Allocation Strategy? Expanding Options: The array of alternate investment options are growing day by day for investors. While they certainly make the portfolio construction process more complicated, they also provide new corridors for increasing potential returns while managing risk. It becomes […]

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Finance Investment Strategy Portfolio Management

Introduction to Asset Allocation – Part III

Guest Post – Tanumoy Hazra Challenges of asset allocation execution: There are many challenges in executing an asset allocation. A few common ones have been outlined below: I) Costs & lock-ins: Some asset classes are available but their costs are very high. For instance: A private equity/real estate fund is available at fixed fee plus performance […]

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Finance Investment Strategy Portfolio Management

Introduction to Asset Allocation – Part II

Guest Post – Tanumoy Hazra Introduction The importance of asset allocation lies in the overall risk-return performance of your portfolio. Both asset allocation and rebalancing your portfolio when required, play an important part in having a well diversified and a disciplined investment approach. The number of benefits provided by these 2 relatively straightforward investment strategies is immense. […]

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Finance Investment Strategy Portfolio Management

Introduction to Asset Allocation – Part I

Guest Post – Tanumoy Hazra Introduction Asset Allocation is an investment process which aims at allocating capital in different assets classes (eg: stocks, bonds, cash, gold, etc) that helps in balancing the risk and returns in a portfolio in accordance to the investor’s goals, risk tolerance and investment horizon. Examples of types of Assets Stocks â€“ […]

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Economy

Different Economic Schools of Thought

In this week’s article, I am going to walk you through 3 Economic schools of thought, namely, Laissez-Faire Economics, Neoclassical Economics and Keynesian Economics. So, let’s jump right to it! Laissez–faire Economics What is Laissez–faire Economics? According to the “Laissez-faire” economic school of thought, the economy works best when the government does not intervene in […]

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Behavioral Finance Finance Long-Form Article Series

History is not the Future

Setting the Context In this week’s article, we explore a plethora of topics, from “End of History Illusion” to “Pluralist Ignorance Effect”, concept of “Alternative Histories” and other such fluff from interdisciplinary domains, pivotal for investors to be cognisant about in the world of Finance. This particular read is tilted towards Behavioural Economics, Human Psychology, […]

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Finance Investment Strategy Portfolio Management

The Law of All or Nothing

Introduction In probability theory, the Kolmogorov’s zero–one law, named in honour of Andrey Nikolaevich Kolmogorov (yeah, I couldn’t pronounce that either), specifies that a certain type of event, called a tail event, will either almost surely happen or almost surely not happen; that is, the probability of such an event occurring is zero or one. The significance of this law is more pronounced in […]