In the ever-evolving world of finance, traditional investments like stocks and bonds no longer hold the monopoly on investor interest. Over the years, alternative investment strategies have emerged, offering savvy investors new avenues to diversify their portfolios, seek higher returns, and hedge against market volatility. One of the most iconic examples of early alternative investments … Read more
In 1974, the British Rail Pension Fund (BRPF) made a bold and unconventional decision: it invested in art. This move was unprecedented at the time, as pension funds traditionally invested in stocks, bonds, real estate, and other conventional assets. But with stock markets underperforming and inflation rising in the 1970s, BRPF was forced to look … Read more
Understanding SEBI’s Report on Algorithmic Trading and Its Impact on Retail Investors The financial markets have been revolutionized by algorithmic trading, a technological advancement that has given proprietary traders (prop traders) and Foreign Portfolio Investors (FPIs) a significant edge. According to SEBI’s recent study, algo trading has accounted for more than 96% of their profits … Read more
Retail investors have long been attracted to equity derivatives, especially in futures and options (F&O) trading, hoping for quick financial gains. Yet, a recent report by the Securities and Exchange Board of India (SEBI) offers a startling reality check: 93% of retail investors suffered significant financial losses in this market between FY22 and FY24. What’s … Read more
In the ever-evolving business landscape, financial volatility and budget variations can arise unexpectedly. These fluctuations often prompt the need to renegotiate contracts with vendors to realign costs and services. A well-thought-out strategy for renegotiation is essential to maintaining vendor relationships while securing terms that support your organization’s financial goals. Here’s a step-by-step guide on how … Read more
The landscape of non-institutional investors in Indian IPOs has experienced a seismic shift, thanks to recent SEBI policy changes. This article dives into the segmentation of NIIs into small-NIIs and big-NIIs, exploring how these new rules are revolutionizing IPO participation, oversubscription rates, and market stability. Understanding SEBI’s New NII Segmentation: Small-NIIs vs. Big-NIIs Historically, non-institutional … Read more
The world of Initial Public Offerings (IPOs) often defies traditional financial logic. A prime example of this is the disposition effect, a behavioral bias where investors are more likely to sell appreciated shares while holding onto those that have lost value. This article explores the disposition effect among IPO investors, its roots in behavioral finance … Read more
Retail investors in Indian IPOs is experiencing a surge, and a recent SEBI report uncovers an intriguing trend: a significant regional concentration of retail investors. Leading the charge is Gujarat, contributing a staggering 39% of retail IPO investors, with Maharashtra and Rajasthan following behind. But what drives this regional skew? Let’s explore why Gujarat dominates … Read more
Attract retail investors during an IPO is essential for creating a balanced, diverse, and dynamic shareholder base. Retail investors bring liquidity, long-term stability, and can help mitigate the influence of large institutional players. But how can companies effectively win over retail investors in a competitive IPO landscape? Below are 10 powerful strategies that companies can … Read more
In the world of Initial Public Offerings (IPOs), anchor investors are considered the cornerstone of stability and trust. These large institutional investors commit to buying a significant portion of shares before the IPO hits the market, signaling confidence and ensuring a smooth launch. However, what often goes unnoticed is the risk of over-reliance on these … Read more