Will your fund beat the index over a long period ?

Today’s Daily Byte

There was blood on the street. The way you read in the investment thesis books is to buy when there’s blood on the street. Well, there’s a lot of blood on the street right now, and nobody’s buying. That’s precisely why the blood is there. While the market is getting bloody, one needs to have a realistic approach and realistic expectations. If anyone is feeling nervous or fearful, that emotion should dissipate, as it’s natural for the market to behave this way, especially considering its performance over the last several years.

In terms of distance from the 200-day moving average (DMA), it’s not so bad. Even if we assume the markets are heading toward the 200 DMA, that wouldn’t be disastrous. The fund flow is, of course, a reason we are still holding here; otherwise, we could have been 20% lower.

Domestic and foreign institutional investors (FIIs) are currently in the red, and bears are in complete control. This brings us to the topic for discussion today: should you panic?

Reading Time : 4 Minutes

Will your fund beat the index over a long period ?

An insightful infographic from U.S. market data gives a clear picture of how equity funds have performed over the past 30 years. This data shows the journey of equity funds between 1992 and 2022, revealing some surprising trends in fund survival and performance.

Out of all the equity funds, the results highlight that not many managed to perform better than the S&P 500 index, the benchmark most funds aim to outperform.. . . . .

Reading Time : 4 Minutes

Interest rates killing businesses

Interest rates in the U.S. have recently seen a sharp increase, moving from near-zero levels to nearly 7% in a short period. This shift echoes a similar rise between 2004 and 2008, when rates climbed from around 1% to more than 6%, putting enormous pressure on small businesses.

During this earlier period, the increase in rates made it extremely difficult for small businesses to survive as borrowing became more costly. Many business owners now face the same struggle, as the high borrowing costs directly impact their ability to operate and sustain growth. . . . .

Reading Time : 3 Minutes