We live in a VUCA world fraught with risks of the unknown unknowns kind. These risks can’t be known in advance or be quantified. How does one invest in such an environment? Should we stop taking any risks? That’s we touch upon in the Lighthouse March 2023. Recently I happened to come across Mark Spitznagel’s […]
Funny Money Show – Risk
“When will these rains ever get over?”, FunnyBone cries out as she wakes up from her slumber. That’s not good. I didn’t want to sound off an idea with her with this mood. “What the heck!” I went ahead, anyways. Me: Hey FunnyBone, what if I explain ‘risk’ to my investors as “something that is […]
Will you get safer debt funds with SEBI’s new measures?
You are well aware of the problems debt funds have been facing in recent times. I won’t be surprised if you say that you don’t trust debt funds anymore. In fact, I would agree. There are pros and cons to all investments. Debt funds are no exception. Over time, SEBI has introduced various measures to […]
The problem with Sharpe Ratio and other measures
The Sharpe Ratio is one of the risk adjusted returns method used in evaluating financial investments. Created by William Sharpe, the ratio tells us how much an investment instrument compensates us for the risk it takes. Put it simply, life is good without risk. You and I can safely invest in a government bond, a bank […]
How much risk can you take?
Risk is such a commonly used word in our daily lives. It is also the one, which is not fully understood. The term we more often use is “chance”. Let’s use this chance to understand risk. What is risk? Risk is the uncertainty that we face when we venture into the ‘unknown’. If I could express it in the following […]
Debt Mutual Funds and Structured Obligations (SO) – Does it mean more risk?
The Franklin Ultra Short Bond fund is a debt mutual fund which invests in various short term corporate bonds, government securities and money market instruments. If you look at the holdings of this fund, you will observe that they all carry a credit rating. A credit rating gives an idea about how safe or not is the […]