When it comes to investing, one question comes up again and again: “Where should I invest my money?” Should it be in equity mutual funds? Debt? Gold? Fixed deposits? Real estate? Or should you simply keep more money in the bank? The better question, however, is not “Which investment is best?” but “What is the right allocation of my money across different asset classes for my goals, time horizon and risk profile?” This is where asset allocation becomes one of the most important concepts in...

The Indian financial markets are once again proving an important lesson to investors: short-term fear rarely changes long-term wealth creation. Two recent developments paint a fascinating picture of the current investment environment: Foreign Portfolio Investors (FPIs) have pulled out over ₹2 lakh crore from Indian equities within just five months, one of the largest outflows in decades. At the very same time, Indian mutual fund investors continued pouring money into the markets, with equity...

Over the past few weeks, many investors have noticed their mutual fund portfolios declining. This has naturally raised concerns and questions about whether the market is entering a difficult phase. However, when we look closely at market valuations, an interesting picture emerges. The correction we are seeing is not necessarily a negative development, it may actually be a healthy reset for the market . Let’s break this down in simple terms. What Are Market Valuations? A common way to measure...