Knowledge Centre

Did I miss the bus?

Estimated reading time: 2 minutes 3 seconds

The election uncertainty is over and like many news channels are saying, "The People of India have spoken". Hopefully, the rabble-rousing, the mud-slinging,...

Anup Bansal
May 23 2019

The Emerald Potion and Investments

Estimated reading time: 2 minutes 59 seconds

In "Harry Potter & Half-Blood Prince" by J. K. Rowling, there is an interesting story about the Emerald Potion which I have reproduced below: Harry: ...

Anup Bansal
Feb 20 2019

How to handle bad roads and traffic...

Estimated reading time: 2 minutes 30 seconds

Sometime back when I was driving to work, I saw a car overtake me and speeding much beyond the prescribed limit. It seems the vehicle occupant was late...

Anup Bansal
Dec 31 2018

We are all stories in the end, Just...

Estimated reading time: 2 minutes 32 seconds

"Do Nothing Wrong and the Right Thing Will Happen"This is the headline from Chapter 6 of the book "the art of the good life" by Rolf Dobelli. I have taken...

Anup Bansal
Dec 8 2018

Trivialising the Investment Process

Estimated reading time: 4 minutes 21 seconds

Festivals bring friends and families together and get-togethers lead to discussions. One favorite topic of discussion is the current state of affairs of...

Anup Bansal
Nov 10 2018

Be the BULL in this market, Invest ...

Estimated reading time: 3 minutes 17 seconds

The securities arm of a well-known bank that serves both Institutional and Retail clients gave SELL rating on Hero Motorcorp for Institutional clients...

Anup Bansal
Oct 21 2018

The X-Factor

Estimated reading time: 3 minutes 8 seconds

"It is all about timing!" The protagonist Chesley Sullenberger says in the movie 'Sully'. Captain Sullenberger (known as Sully) landed the US Airways flight...

Anup Bansal
Sep 15 2018

A Tale of Two Friends

Estimated reading time: 2 minutes 36 seconds

Sensex fell by 410 points on Friday, March 23rd, 2018 - a more than five-month low according to one news headline. Since Jan 29, 2018, when the Sensex...

Anup Bansal
Apr 15 2018

Discounts and Free Services

Estimated reading time: 3 minutes 36 seconds

A couple of years back, my friend Shekhar (name changed) was visiting Agra, the city of Taj in the month of February when the weather is neither too cold...

Anup Bansal
Apr 8 2018

Volatility is your friend!

Estimated reading time: 2 minutes 27 seconds

Today the Indian stock market fell by around 1. 5% and has fallen by around 4. 8% in the last four sessions since the budget. We all are feeling the pain...

Anup Bansal
Feb 6 2018

FOMO

Estimated reading time: 1 minute 48 seconds

I happened to be on Dalal Street on the day Sensex crossed the mark of 35,000 on 17th January. There was the crowd, there were cameramen, there were balloons,...

Anup Bansal
Jan 26 2018

Money , Emotions and Demonetization

Estimated reading time: 5 minutes 0 seconds

Money evokes extreme emotions. While we all know that money is just a means to supposedly greater ends, varying from person to person, we get to see love,...

Anup Bansal
Nov 24 2016

Olympics and Investments

Estimated reading time: 2 minutes 21 seconds

Congratulations to our sportspersons P V Sindhu and Sakshi Malik on their medals and bringing laurels to the country. But more than that, my respect and...

Anup Bansal
Sep 9 2016

Stock Market Is Up - What Should I ...

Estimated reading time: 3 minutes 5 seconds

Nifty has given an absolute return of 29% since the beginning of this year and relevant questions in every one's mind are should I invest more or should...

Anup Bansal
Sep 22 2014

Financial Adviser - Do You Have A P...

Estimated reading time: 4 minutes 9 seconds

When it is a question about your health, would you not ensure that the doctor you are consulting is qualified? When you want to build a nice house, would...

Anup Bansal
Aug 18 2014

Opportunity Cost - Should Investors...

Estimated reading time: 4 minutes 17 seconds

"Opportunity Cost" of a choice is the value of the best alternative forgone in order to pursue a certain action. In other words, it is the cost incurred...

Anup Bansal
Jun 2 2014

The Hindu Undivided Family

Estimated reading time: 4 minutes 28 seconds

The Indian Income tax Act recognises a Hindu Undivided family as a separate taxable assessee No! There is no such distinct tax on families. At least not...

Aditya Shastri
Sep 14 2013

Dynamic Asset Allocation and the Ro...

Estimated reading time: 2 minutes 59 seconds

A regular and fixed monthly investment over the period January 2008 - December 2012 in a well-known debt fund would have given a CAGR (compounded annual...

Anup Bansal
Jun 8 2013

Seven Steps in the Process of Inves...

Estimated reading time: 0 minutes 45 seconds

Step 1 - Establish the investor's return and risk objectives from the current financial status, desired goals, risk questionnaire. Step 2 - Establish the...

Anup Bansal
Jan 13 2013

Competence and Wealth Advisory

Estimated reading time: 3 minutes 6 seconds

It is a given that competence is required to produce anything valuable, to service clients and in general, to be successful. However, the question that...

Anup Bansal
Dec 31 2012

The Curious Case of Real Estate Inv...

Estimated reading time: 4 minutes 52 seconds

Rs. 8 lakhs invested in a piece of land in 1990 in a non-metro city is worth Rs. 3 Cr today. We all have been reading and hearing about the phenomenal...

Anup Bansal
Sep 13 2012

Determining Your Risk Profile For I...

Estimated reading time: 2 minutes 56 seconds

When the markets are going up and up, everyone goes on the bandwagon irrespective of adequate understanding of financial goals, risk appetite and investment...

Anup Bansal
Jul 27 2012

"Emotizing" Your Investments

Estimated reading time: 5 minutes 57 seconds

"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...

Anup Bansal
Apr 4 2012

"Bucketizing" Your Investments

Estimated reading time: 3 minutes 51 seconds

"Bucketizing" is not a word that can be found in English dictionaries so let me explain the term. I have coined the term "Bucketizing" for the process...

Anup Bansal
Mar 1 2012

July Newsletter - 2019

Estimated reading time: 9 minutes 52 seconds

FINANCIAL NEWS The Supreme Court on July 23rd delivered its verdict on the stalled projects of the Amrapali Group and has cancelled the RERA registration...

Mitraz Knowledge
Jul 31 2019

June Newsletter - 2019

Estimated reading time: 10 minutes 40 seconds

KNOWLEDGE - DISPOSITION EFFECT BIAS
Symptoms - This refers to a tendency to label investments as winners or losers on the basis of unrealised gains and...

Mitraz Knowledge
Jun 30 2019

May Newsletter - 2019

Estimated reading time: 11 minutes 29 seconds

KNOWLEDGE - NEGATIVITY BIAS
Symptoms - Investors put more weight on bad news than good and react to negative events in a more than a proportionate way...

Mitraz Knowledge
May 31 2019

April Newsletter - 2019

Estimated reading time: 13 minutes 16 seconds

FINANCIAL NEWS SEBI 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...

Mitraz Knowledge
Apr 30 2019

March Newsletter - 2019

Estimated reading time: 12 minutes 35 seconds

FINANCIAL NEWS The Securities and Exchange Board of India (SEBI) has issued norms for valuation of money market and debt securities that are rated below...

Mitraz Knowledge
Mar 31 2019

February Newsletter - 2019

Estimated reading time: 11 minutes 51 seconds

KNOWLEDGE - NARROW FRAMING BIAS
Symptoms - Insistent focus on the performance of individual securities, looking at individual asset class performance in...

Mitraz Knowledge
Feb 28 2019

January Newsletter - 2019

Estimated reading time: 12 minutes 6 seconds

KNOWLEDGE - SELF SERVING BIAS
Symptoms - The tendency to attribute favourable outcomes or successes to one's own skill/internal factors and attribute...

Mitraz Knowledge
Jan 31 2019

December Newsletter - 2018

Estimated reading time: 11 minutes 59 seconds

KNOWLEDGE - ENDOWMENT BIAS
Symptoms - The tendency to place a significantly higher value on things when we already own them. An Example - The endowment...

Mitraz Knowledge
Dec 31 2018

November Newsletter - 2018

Estimated reading time: 12 minutes 32 seconds

KNOWLEDGE - INCENTIVE CAUSED BIAS
Symptoms - It is said that one should not ask the barber the need for a haircut. People with a vested interest will tend...

Mitraz Knowledge
Nov 30 2018

October Newsletter - 2018

Estimated reading time: 12 minutes 6 seconds

KNOWLEDGE - HINDSIGHT BIAS
Symptoms - When finally after the outcome of an event, one tries to simplify the causes and effects of a complex situation (complex...

Mitraz Knowledge
Oct 31 2018

September Newsletter - 2018

Estimated reading time: 9 minutes 22 seconds

KNOWLEDGE - BANDWAGON EFFECT
Symptoms - Sometimes, people want to buy shares of a certain company because everyone they know is talking about it, heard...

Mitraz Knowledge
Sep 30 2018

August Newsletter - 2018

Estimated reading time: 8 minutes 27 seconds

KNOWLEDGE - INFORMATION BIAS
Symptoms - The tendency to collect more information beyond a point that the information collected ceases to affect the decision...

Mitraz Knowledge
Aug 31 2018

July Newsletter - 2018

Estimated reading time: 10 minutes 2 seconds

KNOWLEDGE-LOSS AVERSION BIAS
Symptoms - Loss aversion refers to the tendency to prefer avoiding losses than acquiring gains. Some studies suggest that...

Mitraz Knowledge
Jul 31 2018

June Newsletter - 2018

Estimated reading time: 8 minutes 32 seconds

KNOWLEDGE-OUTCOME BIAS
Symptoms - The Isolation Effect (The Von Restorff Effect) is likely to be exhibited when people value a thing differently depending...

Mitraz Knowledge
Jun 30 2018

May Newsletter - 2018

Estimated reading time: 8 minutes 39 seconds

KNOWLEDGE-OUTCOME BIAS
Symptoms - The tendency to judge a decision by its eventual desired outcome instead of judging it based on the quality of the decision...

Mitraz Knowledge
May 31 2018

April Newsletter - 2018

Estimated reading time: 7 minutes 45 seconds

KNOWLEDGE-MENTAL ACCOUNTING
Symptoms - People may normally feel that money saved for a new house requirement, kids marriage or education is too "sacred...

Mitraz Knowledge
Apr 30 2018

March Newsletter - 2018

Estimated reading time: 8 minutes 38 seconds

KNOWLEDGE-SUNK COST FALLACY
Symptoms - An investor who is likely to hold on to his investments or may invest more even if the opportunity cost is high...

Mitraz Knowledge
Mar 31 2018

February Newsletter - 2018

Estimated reading time: 7 minutes 13 seconds

KNOWLEDGE-OVERCONFIDENCE BIAS
Symptoms - The self-belief that one has higher skills or an edge compared to others due to success in the recent past. A...

Mitraz Knowledge
Feb 28 2018

January Newsletter - 2018

Estimated reading time: 6 minutes 15 seconds

KNOWLEDGE - CONFIRMATION BIAS
Symptoms - We don't argue any findings if it supports our existing view, whereas we tend to disagree more if the findings...

Mitraz Knowledge
Jan 31 2018

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