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@bonnieb tAssuming 240 trading days a year, 1% per day works out to around 1000% return in a year. Start with 1 Lakh Principal = P = 1,00,000 No of terms = t = 240 Rate per term = r = 0.01 Final Value = P * (1 + r)t = 100000 * 1.01240 = 1089255.37 (Nearly 11 Lakhs) So if you...

@thoughtlessdepth Yeah.

@diznug UTI bank was a bank promoted by PSUs & other entities promoted by PSUs. That's why it was bailed out by Govt. I hope Govt doesn't bail out Yes Bank (not that I support bailouts of PSUs).

@onisim If you are talking about the difference between the traded price & the NAV, I am not sure if Tracking Error is the right term for it. It's a pricing error. Tracking error is the difference between the NAV & the index it's following.

@onisim There is one more advantage - with ETFs you know what price you are buying or selling it at. With MFs, you don't. On regular days, it doesn't matter but when the market is highly volatile, it would make a difference. For e.g. on that day (13th March?) when stock market hit the lower...

@furiouscat4323 What imminent move to electric cars? Did I miss the memo?

@padraig_leigheanach RBI has already increased liquidity for investment grade papers. This is not a my fund is better than yours argument. It's an argument to not give people a perverse incentive to take risks & thereby increase the risk in the system. This doesn't come free of charge...

@onagooddaydevout The original post actually claimed that the MF is short by 55%. Your spreadsheet shows it's short by around 12%. 12% is still a big difference. Hope it's because of some initial hiccups. Is it possible to check if the current holdings of the fund is in line with the SP500...

@padraig_leigheanach Where did I say they aren't a legitimate industry? This isn't a liquidity problem across different kinds of debt funds. It's a liquidity problem only with debt funds which held higher risk paper for higher returns. This is exactly the risk which their investors got good...

@nischansr Yes, I understand why the Feds are doing this. But this is just kicking the can down the road for a bigger problem. From the company's point of view, debt increases their profits in good times, but risks the company in bad times. From the investor's point of view, he gets a higher...

@kenjisan70 It's not just under reporting, People aren't taking it seriously either. This is from Disney's Magic Kingdom yesterday night (Disney is going to close down from today)

@vikkik Strange that during a pandemic everyone looks to the finance ministry rather than health ministry. Nirmala Sitharaman gets tagged on more tweets about CoronaVirus than the health minister.

@crixus123 The panic is because of real reasons. If the economy gets screwed because of the virus & lockdown, then companies which floated high interest papers would be the first to go bust (the reason they floated high interest papers was because they couldn't get money cheaper). So the debt...

@vikkik This was written by a Risk Analyst working in the US financial sector Light Scenario: My Probability:35% Infections: 1,000,000 Peak by April 30 Deaths: 20,000 Global Containment: 15 countries > 20,000 infected Business Impact: -15% revenues in Key Sectors over 6 months SPX low...

@breaf123 Technically, RBI hasn't made it mandatory for lenders to grant a moratorium on loans. If you read the circular wording, it says that the lenders are allowed to grant a moratorium (means they won't have to mark it as NPA even if they grant a moratorium which they otherwise would have to...

@zashmaster There is no problem with spending less if it's beyond their means to spend more. The issue is in announcing 20 lakh crore stimulus with much fanfare at 20 minutes past 8pm in the year 2020. Also one of the reasons for less money is also the fact our economy hasn't been doing well...

@padraig_leigheanach It's not the job of the Govt to save Mutual funds. People bought Credit Risk & other funds because of outstanding returns in 2018 etc. While some poor saps bought G-Sec/Gilt/Liquid/FD funds with lower returns. People who bought these bought it for safety. Why should the...

@zashmaster ET Now journalist has posted the fiscal impact of the stimulus/new budget (all 5 tranches of the budget) - 1.979 Lakh crore. 1/10 of 20 Lakh Crore Livemint also has similar figures Barclays says it's 1.5 Lakh crore

@bbarb Biocon is also probably top 10 biologics company in the world. Biologics is complicated tech. It takes years & years to research and get a new drug out. Even if you are talking about biosimilars (which are the biologics equivalent of a generic drug), it takes 3 to 5 years to create a...

@resjudicata That's how most current left wing governments work. Crony Capitalism & rent seeking is a big part of left wing governments.