The Indian stock markets ended last week in red. A couple of factors played into this. Global economic growth has been showing signs of fatigue economists at Bank of America downgraded growth forecasts for the US. Secondly, many countries, including the US, UK and some countries in Asia have been struggling to contain the delta variant of the coronavirus as cases have started to rise again. Lastly, foreign portfolio investors (FPIs) have been net sellers of equities in July.

These factors made investors nervous as benchmark indices ended the week lower.

Quote of the week

“With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future.”

Markets Update

The Big Picture

• Foreign Exchange Reserves in India increased to an all-time high of $612.73 billion on July 16 from $611.90 billion in the previous week.

Investing Insights

What is Value Investing?

Pretty much every person, even those outside the investments world, know about Warren Buffett. He is the world’s most famous investor, and arguably one of the best too. In over six decades of investing, Mr. Buffett has amassed enough wealth for him to be among the richest people in the world.

His mentor, Benjamin Graham, is called the Father of Value Investing. Graham believed that the value of a stock can be determined fairly accurately with proper research and analysis. He built a framework for the same which he outlined in his book called “The Intelligent Investor“. Read more about value investing, here.

Inside smallcase

SIPs with smallcase

SIP stands for Systematic Investment Plan. As the name suggests, it helps the investor allocate funds in a smart and disciplined manner. Timing the markets is a difficult task, but SIP eliminates that worry. With SIP, you can invest fixed amounts at regular intervals. You, then, stand to have an advantage over market volatility and do not need to monitor the markets constantly.

Buy more when the price is low, less when the price is high. If on the SIP date, the stock price is high, you will be able to buy a lesser number of shares. And vice versa. This ensures that you invest more at lower prices and less at higher prices, and hence your overall cost of acquisition gets averaged out. Try out investing with SIPs in smallcases for passive, long-term wealth creation. Read more about SIPs, here.

And that’s all for this week. Take care, and happy investing! 🙂