Monitoring helps you determine exactly when a goal is on track. It provides you a feedback which incorporated allows you to make rectifications and therefore achieve your goals which you have laid out earlier. Feedback is important as it could tell you whether the path that you have chosen to achieve your goals is correct. It is a vindication of some sort. A reality check. It gives you an opportunity to correct your deviations and take you towards your goal.
Let us look at what have transpired in December 2020 In December 2020, markets have risen by 6.66% overall. GST collection in December at all time high FII’s have invested Rs 103,156 crores in calendar year 2020. They continue to pump money in 2021 (11000+crores already added). DII’s have been net sellers in calendar year 2020.
A cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects their decisions and judgements. The concept of cognitive bias has been introduced by Daniel Kahnemann and Amos Taversky in 1972. I strongly recommend to read the book Thinking Fast and Slow which details the working of our brain. There are several biases that we should be aware of whenever we are making decisions :
This is one of those rare months where all sectors have done well . If you had remained invested through the month, your mutual fund value would have risen . How about that ! Foreign Institutional Investors (FII) have invested 60358 crores. This is almost the same amount they withdrew in March 2020. Overall investment in India is close to 100 thousand crores. In September 2020, we saw healthcare and technology funds doing well.
In my initial spotlight, I reviewed Parag Parikh and how well it has done giving double digit growth (50%) since April 2020 and 31% since YTD . You would think that it would be quite difficult to keep giving double digit growth. However, since my last review, Parag Parikh Long Term Equity Fund has given a growth of 12% How Parag Parikh LTEF has shifted its sectors ?