Applying Phillips Curve to Fed’s inflation-unemployment equation

The growth-inflation dynamics as a guide to policymaking is undergoing changes in the context of the peculiar financial and economic conditions, which economies, and more particularly central banks, are facing currently. The Phillips Curve is probably becoming more relevant here. Developed by AW Phillips, the thesis is that inflation and unemployment are inversely related. With […]

REITs: A lucrative addition to an investment portfolio

Real estate investment trusts (REITs) are a key consideration when formulating any equity or fixed-income portfolio. Let us understand why they provide greater diversification, potentially higher total returns and small overall risk. A Real Estate Investment Trust (REIT) is structured like Mutual Funds (MF), in the sense that it allows pooling of investor money to […]

Product Note: NFO – Invesco India Focused 20 Equity Fund

Focused Equity Fund – An open-ended equity scheme predominantly investing in equity and equity related instruments. These schemes are mandated to invest in maximum 30 stocks and mention where the scheme intends to focus, viz., multi-cap, large-cap, mid-cap, small-cap. Invesco India Focused 20 Equity Fund Fund Details: Fund Manager – Mr Taher Badshah; he has […]

The Fed Statement & the Markets

The response of the markets to the Fed statement is no surprise. An extended period of low interest rates means three things, one, the current economic conditions are extremely distressful, two, the time taken for recovery is likely to be longer than expected, and three, an extended period of low growth. If a long-drawn struggle […]

CPI inflation sticky at 6% level…

The CPI based inflation was reported at 6.69% for the month of Aug’20 as compared to 6.73% for the preceding month and 3.28% during the year ago period. The inflation numbers have remained sticky at around 6% levels for the year 2020. The elevated levels of food inflation during the year been the major factor […]

IIP: Fifth Consecutive Month of Contraction

The IIP numbers continued to remain in contractionary zone and extended the streak to five months. The rate of contraction is not as severe as seen during the months of April and May (months with strict nationwide lockdown), but the pace of recovery has lost some steam. The localised lockdowns and restrictions have led to […]

SEBI Circular on Asset Allocation of Multi Cap Funds

What does the circular say? The circular states that, “In order to diversify the underlying investments of Multi Cap Funds across the large, mid and small cap companies and be true to label, it has been decided to partially modify the scheme characteristics of Multi Cap Fund.”Until now the funds under Multi Cap category were […]

Product Note: NFO – Mirae Asset Equity Allocator Fund of Fund

Mirae Asset Equity Allocator Fund of Fund – It is an open-ended fund of fund scheme predominantly investing in units of domestic equity ETFs. It seeks to provide investors with a broad exposure to large and mid cap equity segments by investing in the units of large cap and mid cap  equity ETFs. Investment Framework […]

GDP Growth contracts…the worst ever…

Registering a sharp contraction in economic growth, the GDP number for Q1 of 20-21, has come at -23.90%, a deep fall, the worst ever, which is the direct consequence of the pandemic and the lockdown. A fall close to -20 % was more or less expected by a number of market participants. Even with some […]