To worry about something you can't control is often futile. But who'd have thought worrying about something can be expensive too? COVID-19 is making a come back in many countries. Iran is now going through its 4th wave, the US is in its 3rd wave and Europe, its 2nd wave. Those who worried about the economic impact of the virus on businesses and stayed away from equity markets have lost out on one of the biggest inter-year rallies in history. BSE Sensex has returned 8% in just the last 1 month. Fixed Deposits aficionados are feeling left out from the party. How are you feeling?
IN TODAY'S NEWSLETTER
Market update & news in brief
Money heist? No, COVID-19 vaccine heist
Game : The price is right
Cover story - How to invest Rs.10,000? The nation wants to know!
In case you missed it - Practical guide to picking MFs
Thought for the day
There are 4 government mints operating in India that produce Indian rupee coins. They are in Mumbai, Kolkata, Hyderabad and Noida. Which one of those four mints produced this one-rupee coin?
Gold (per gram)
NEWS IN BRIEF
In the Sunday Weekly Issue #2, we wrote - "Shareholders voted against the re-appointment of 7 of Lakshmi Vilas Bank’s directors. CEO and MD who was appointed by the RBI was also voted out. Ouch."The central bank this week came back with vengeance and wiped them out. The man with the money always has the last say.
The UK this week unveiled ambitious plans for a green industrial revolution in the island nation. As part of the plan, diesel and petrol cars/vans are slated to be phased out by the year 2030.
Bitcoin this week broke the $18,000 mark it last achieved about 3 years ago. The cryptocurrency is up about 160% since the beginning of the year. But legendary investor Ray Dalio said this week, ‘I might be missing something about Bitcoin’. We might be too.
India’s antitrust regulator approved Reliance Industries’ $3.5Billion acquisition of Future Retail limited leaving Amazon with a sore bottom, sore wallet and sore experience. This approval intensifies the battle between the giants to capture India’s $1 trillion-dollar retail market.
Great news for yield hunters! Yields are trending up following this week's bond defaults. China’s chipmaker Tsinghua Unigroup defaulted on its $198 Million bond making it the third state owned company to default in recent times. In Africa, Zambia defaulted on its Eurobond becoming the continent’s first pandemic-era country to default.
IN LESS THAN 200 WORDS
Money heist? No, COVID-19 vaccine heist!
Indian media completely ignored a major development that happened this week. In a tag team partnership with South Africa, India tabled aproposalat the WTO in mid-October requesting waiver for COVID-19 related therapies and vaccinations from IP protections. What the proposal said in summary was to not let pharmaceutical companies carry on with business as usual when it comes to COVID-19 vaccine. And that wouldn’t be possible if the vaccines are IP protected. The companies that have successfully developed it will choose to price as they wish to and produce it in their own/partners’ production units. This will be neither quick, nor cheap. What we need right now is for more and more companies to manufacture the vaccines so it can be distributed quickly and widely. Waiving IP rights will enable just that.
This proposal was tabled at the WTO on Friday this week and it was supported by over 100 developing countries including China. But developed countries including US, UK, European Union, Australia, Canada, Norway and Switzerland opposed it. Why? For one, many of these countries have pumped in lots of money into the development of the vaccine. The US’s. operation Warp Speed has spent nearly $10Billion of taxpayer money on pharmaceutical companies. Surely, they’d need to recoup their investment. But when thousands of people are falling victim to the virus every day, should money be a consideration at all?
This is the terrace of the Maharani Suite at Taj Umaid Bhawan Palace hotel in Jodhpur. It was originally designed for Maharani Badan Kanwan, and is set in pinks, blacks, chrome and mirrors, and dominated by a mural of the Goddess Kali. The private terrace enjoys a spectacular view of the palace gardens and of Mehrangarh Fort.
Guess the price for one night’s stay on new year eve (31 Dec 2020) in this suite.
Where to invest Rs.10,000
We could give you an answer to that question in 5 bullet points. But that’s not us. Give a man a fish, and he will eat for a day. Teach a man how to fish and you feed him for a lifetime. This newsletter will teach you how to fish, metaphorically 🙂
Word of caution: There are an infinite number of approaches you can take to arrive at an answer to that question. But all (good) roads, lead to Rome. Here is one, metaphorically 🙂 (Two metaphors in a row, I am on a roll!)
GOAL BASED INVESTING
It is the 1st of the month. Salary Divas! Arnav Ramaswami, our protagonist has decided to take Rs.10,000 from his salary and invest it. But where?
He approached us and we asked him, "So Arnav, what are some of your short term and long-term goals in life? The nation wants to know!"
And then, he showed us this chart.
This is perhaps what most people’s funding chart looks like – The short-term goals are adequately funded while the long-term goals are not. This is normal. If your short-term goals are not fully funded, your Rs.10,000 should go towards funding them into a risk-free/short-term money market fund. But if you are like Arnav whose short-term goals are all well-funded, then read further.
This is part-3 of our 3 part series on Mutual Funds. Here are the links to Part 1 and Part 2. This third part is a step by step guide to evaluating and picking equity mutual funds. You'll need some of the concepts we introduced in Part 2 to be able to follow this along. But it is a quick and easy read on how to evaluate equity mutual funds before investing in one. There are 8 steps to it.
The flood of ESG (Environmental, Social and Governance) focussed NFOs (New fund offerings) continues. Kotak’s ESG NFO opens for subscription this week.
Gland pharma listed this week at a premium of 21% to its IPO price this week. The stock ended at Rs.1,819 against its issue price of Rs.1,500.
ANSWER TO QUIZ
Where that one-rupee coin with a little diamond mark under the year of the coin was produced. The mint marks for the other 3 mints are – Kolkata - No mark, Hyderabad – Star and Noida – Dot.
THOUGHT FOR THE DAY
Make way Millenials, because the future belongs to the Zillenials! These are folks born after 1996. BoFA survey concludes that Zillenials are going to change investing once and forever. Read about the ‘clicktivist’ generation here. FZ Finanz
Following along the footsteps of Snapchat, Facebook, Instagram and every other social media platform, Twitter this week launched ‘vanishing tweets’ and called them ‘Fleets’. We are losing the plot! WSJ
ANSWER TO THE PRICE IS RIGHT!
That’s what you will have to fork out for one night’s stay at the Umaid Bhawan Palace’s Maharani Suite on new year eve this year. The cheapest room at the hotel, called the palace room, is going for Rs.61,525 that night.
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