Benchmark Indices have endured torrid times in the recent past on the backdrop of heavy selling of domestic equities by Foreign Portfolio Investors/Foreign Institutional Investors.
As risk heightened in equities, investors shunned equities for taking refuge in the safety of the debt instruments.
Over the last one and half years, global Central Banks infused over a trillion of dollars into the financial ecosystem.
Naturally, money found its way into financial assets and thereby propels global equity indices to record highs.
But their party spoiled when Central banks signal to squeeze excess liquidity systematically from the system coupled with a slowdown in earnings growth in the latest quarters, suddenly expensive valuations became a hot topic in the Dalaal Street and a matter of grave concern as well.
So, the big learning is to limit gold to 10-15 per cent of the portfolio but not to overexposure in it.
These international FOFs have given the best returns over a couple of years compared to other asset classes.
After a stellar 20-month rally benchmark indices have reached an all-time high and delivered around 120-125 per cent from the lows of April 2020.
The slowdown in earnings growth, expensive valuation is difficult to justify and consequently, Indian markets have already corrected 8-9 per cent from their all-time highs in October month to now.
9) Earning decent or substantial/ profits in a particular stock Borrowing on margin or take debt to invest in the stock market or use funds earmarked for specific purposes like marriage, children education and medical expense etc.