Vivek Kaul: The ‘fallacy of composition’ has left equity fund investors reeling

As Justyn Walsh writes in Investing with Keynes: “Keynes’ most famous example of the ‘fallacy of composition’ was the so-called Paradox of Thrift–which notes that saving is good for the individual, but if all individuals increase their savings then aggregate demand will fall, eventually leading to lower savings for the population as a whole.” Also…

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Why this fund wants to keep equal weight across 500 stocks

A 500-stock index is typically expected to offer wide diversification to investors, but the Nifty 500 index has a large-cap bias. However, a recently launched rule-based fund—the Nippon India Nifty 500 Equal Weight Index Fund–aims to give broader diversification across large-, mid-, and small-cap stocks. How it works Instead of market-cap weights, the fund will…

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Despite valuation comfort in largecap stocks, PL Capital’s Vikram Kasat sees opportunity in small and midcaps

Indian stock market investors should capitalize on the growth potential of midcap and smallcap segments while having defensives like largecap pharma, IT and consumer in their portfolio, said Vikram Kasat, Head – Advisory, PL Capital – Prabhudas Lilladher. In an interaction with Livemint, Kasat said there is more valuation comfort in largecap stocks and investors…

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