July Newsletter - 2020
- Mitraz Financial
- Jul 31 2020
Financial News SEBI's new margin rules, effective from Sept 1, 2020 Margin required to buy stocks. Prior till Sept. 1st, there was no margin collection and reporting for cash market transactions. From Sept.1st, all clients will need to have VaR+ELM margins (VaR - Value at Risk, ELM – Extreme Loss Margin) for cash/stock transactions. Therefore to take intraday positions, the maximum leverage available will be 100 divided by the (VaR+ELM)*2. This would seriously reduce the volume of trades happening...
Market Commentary – Kites fly but come down
- Satish Anand
- Sep 23 2020
In this latest edition of the newsletter. we have covered details on the following:SEBI's new margin rules, effective from Sept 1, 2020, effective on the cash markets for buy as well as sell transaction.The charm of sectoral and thematic and its effects on a well-diversified portfolio.What are RBI’s OMO operations?Details on the Honourable Supreme Court’s decision to grant a timespan of 10 years to pay the statutory dues to the government.To Read the Newsletter Please Find the Link at the end...
The Cost of Procrastination
- Kanchana Sridhar
- Aug 17 2020
The Cost of ProcrastinationWe may have something in common, it's a Saturday you are tired from the work you've done all week. You are just relaxing in your living room in front of your TV and you see a notification pop up saying you've missed paying your credit card bill & your heart begins to sink thinking about the added interest payment on it?You've experienced one of the costs of procrastination. Procrastination can cause missed deadlines, missed opportunities, and just plain missing out.Procrastination...
July Newsletter - 2019
- Mitraz Knowledge
- Jul 31 2019
FINANCIAL NEWSThe Supreme Court on July 23rd delivered its verdict on the stalled projects of the Amrapali Group and has cancelled the RERA registration of the Amrapali Group. They have asked National Buildings Construction Corporation (NBCC) to complete all the pending projects of the group, thus giving respite to over 42000 home buyers. The apex court pointed out that Noida, Greater Noida authorities and bank had colluded with the group to the detriment of homebuyers. The court also directed the...
April Newsletter - 2019
- Mitraz Knowledge
- Apr 30 2019
FINANCIAL NEWSSEBI clarified that trail commissions can be up-fronted for systematic investment plans of up to Rs 3,000 per month, per scheme, for first-time investors in mutual fund schemes. SEBI had earlier asked the asset management companies (AMC) to adopt full trail model of commissions in all schemes while allowing upfronting of trail commission only in case of inflows through systematic investment plans (SIPs).The RBI raised the investment limit for FY 2019-20 for foreign portfolio investors...
March Newsletter - 2019
- Mitraz Knowledge
- Mar 31 2019
FINANCIAL NEWSThe Securities and Exchange Board of India (SEBI) has issued norms for valuation of money market and debt securities that are rated below investment grade, a move aimed at ensuring uniformity and consistency in valuation across the mutual fund industry. The regulator said all money market and debt securities rated below investment grade, shall be valued at the price provided by valuation agencies. Besides, the residual maturity for amortisation-based valuation would be reduced from...
May Newsletter - 2018
- Mitraz Knowledge
- May 31 2018
KNOWLEDGE-OUTCOME BIASSymptoms - The tendency to judge a decision by its eventual desired outcome instead of judging it based on the quality of the decision at the time of making the decision. An example - Baron and Hershey in 19881 had presented a hypothetical case to subjects, to rate the quality of a surgeon's pre operation decision. The subjects were presented randomly with a good outcome (living) or bad outcome (dying). The result was that those who were presented with bad outcomes rated...
April Newsletter - 2018
- Mitraz Knowledge
- Apr 30 2018
KNOWLEDGE-MENTAL ACCOUNTINGSymptoms - People may normally feel that money saved for a new house requirement, kids marriage or education is too "sacred or important". As a result, this account may not be touched at all by the client even if doing so would provide added financial benefit. An example could be the portfolio that is managed for the client to meet the expenses for the kid's education in the US which is three years away. Simultaneously, the client also maintains a personal portfolio...
March Newsletter - 2018
- Mitraz Knowledge
- Mar 31 2018
KNOWLEDGE-SUNK COST FALLACYSymptoms - An investor who is likely to hold on to his investments or may invest more even if the opportunity cost is high because of the time and the money (cost) that has already been spent (sunk) on it. An example at an institutional level could be the PSU Banks which lend more money to distressed companies so that the initial funds could be recovered. Steps to correcting the bias - Future investment decisions should not be done on the basis of sunk cost. In...
"Emotizing" Your Investments
- Anup Bansal
- Apr 4 2012
"Emotizing" is yet another word that cannot be found in English dictionaries so let me explain the term. I have coined the term "Emotizing" to describe the process of using emotions to make decisions on investments. Of course, our behavioral biases and emotions are one of the aspects of decision-making nevertheless they play an important role. In an ideal world, all investors should go about the business of investing very logically and unemotionally as prescribed by the modern portfolio theory. However,...
