Question: Do these reasons still hold relevance today ?. In retrospection I believe it was a wise choice given the crypto scams and FTX failure that happened in the later part of 2022. "As in a row of dominoes, the downfall of one can lead to the collapse of all." and finally decided NOT TO INVEST IN CRYPTO.ġ️⃣ Concentration of the Market: The top 25 cryptocurrencies accounted for about ~88% of the total market, creating a highly concentrated and potentially risky environment.Ģ️⃣ High Correlation Among Cryptocurrencies: Cryptocurrencies showed a strong tendency to move together, limiting the diversification benefits of investing in different assets. Last year in 2022, I was captured by the idea of investing in cryptocurrencies, so like any prudent investor I did my research. I write around #personalfinance #investing & #stockmarket . Hence, do not just blindly choose the current best small-cap fund, but have a look at the fund perfomance over the years in terms of returns and consistency. □It's a massive 31% difference in perfomance between best and worst performing fund. The variability in small-cap fund returns over three years is 31%, compared to 13% for large-cap, 19% for mid-cap, 10% for large and mid-cap, and 24% for flexi-cap funds. ⚠️ However, investors should be wary of the substantial risks associated with small-cap funds, as the gap between the best and worst performers can be enormous. □ Their strong performance surpasses large and mid-cap funds, with 34% returns in the past year, and 17% over five years, outperforming large-cap (12%) and mid-cap (15%) categories. □ Small-cap funds are thriving!, attracting 25% of fresh inflows into equity mutual funds, with nearly Rs 18,000 crore invested in the first half of 2023.
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