Money with Monika HT Smartcast

While neoclassical economics postulates that individuals are inherently efficient, when it comes to investing, pragmatism and logic are often overshadowed by what is referred to as behavioural biases. These biases push investors towards making errors by making them take decisions based on impulse and perception rather than factual analysis. Some common biases include loss aversion bias, personalization bias and herd mentality. Tune in to this episode of Money With Monika Season 3 to understand how these behavioural biases work and how one can rein them in.

From Rs 7,000 crore to Rs 2 lakh crore - that is how the asset base of exchange-traded funds in India has grown over the last 5 years. ETFs are a kind of mutual fund, but with one big difference - as the name suggests, they are listed on exchanges and are traded like stocks. They are passive funds, i.e. they mimic an index, and a fund manager doesn't actively choose the constituent stocks. Although ETFs are traditionally cheaper than their non-listed counterparts, retail participation in this category remains subdued, although there is growing interest. Since ETFs are traded throughout the day, their price fluctuates too, unlike other MFs. This is what makes ETFs appropriate for a particular demographic. So are ETFs the right product for you? And if so, then what are the factors you need to keep in mind before you start investing? Listen to this episode of Money with Monika to know more.

Warren Buffett, the famous investor, once called financial markets 'manic depressive'. He was referring to the swings periodically seen on the bourses. Buffett believes investors shouldn't be influenced by these movements, thus maintaining a perpetually long-term vision. But is this the only way to invest? Those who differ with this 'value' style, subscribe to 'growth' investing. Under this strategy, investors pick fast-growing stocks, even if the price is on the higher side. The markets provide another option - GARP (growth at reasonable price) - for those seeking a compromise between the two paths. However, picking a style becomes a bit more challenging when investing via mutual funds. Tune in to know more.

Hybrid mutual funds have seen outflows in the recent past but that doesn't necessarily mean that you should keep your distance from this product. Hybrid funds are a tool with which you can invest across asset classes like debt, equity and gold, while maintaining the asset allocation of your choice. Apart from some tax advantages, these have the added benefit of a fund manager ensuring that your debt-equity ratio is maintained without your active involvement. So, with various types of such funds in the market, which should you choose - Aggressive, Balanced, or Conservative? Listen to this episode to understand hybrid funds, and how to invest in them.

There's a rally in the midcap space in the markets, especially after Sebi's news rules regarding multi-cap funds. But, should you capitalize on this development? Should recent, higher returns dictate your plunge into a midcap investment, or should it be a more strategic decision with a long-term vision? And finally, should you pick a midcap fund to expand your portfolio, or are individual stocks the way to go?

Investor confidence in debt funds has been shaken in recent years due to episodes in the recent past. While regulators have now jumped into action, did investors enter a product class without understanding it in detail? Do retail investors suffer more as compared to their institutional counterparts when debt funds crash? And, how should you proceed with investing in a financial product which can bolster your portfolio? Tune in and find out