Tough loan market, rise of momentum investing: Top personal finance stories

This week we write about how to get a loan as availability norms harden and how to select momentum index funds

This week’s lead story by Himali Patel discusses the tightening of credit availability, especially via credit cards and personal loans, due to rising defaults. It advises readers on how to improve their creditworthiness and suggests applying for a variety of secured loan options.

 

The second article, by Sebi-registered investment advisor Deepesh Raghaw, highlights the rise of momentum investing, and new index funds that offer investors access to this strategy. Investors must bear in mind that momentum investing comes with risks, as past performance isn’t always predictive of future returns. Raghaw suggests choosing a fund that aligns with the investor’s risk tolerance.

 

 

With market volatility surging over the past month, experts are increasingly advising investors to tilt their portfolios towards largecap funds. If you are looking for a fund from this category, go through Morningstar’s review of Aditya Birla Sun Life Frontline Equity, one of the leading funds from this category.

 

If you have reached the age of 30, have people dependent on you financially, and have yet to purchase a term insurance plan, now is the time to act. Check the premium rates from Policybazaar.com to get a clear estimate of the cost involved.

Number of the week

Bitcoin surges past $75,000

 

Bitcoin reached a historic peak of $75,000 on Wednesday, exceeding its former record of $73,750. This increase occurred due to belief among investors that Donald Trump’s victory in the US presidential election would provide a boost to cryptocurrencies.

 

Ether, the world’s second most cryptocurrency after bitcoin, also rallied.

 

Trump, who was earlier sceptical about cryptocurrencies, changed his mind and now favours them.

 

Sound regulations around cryptocurrencies could favour increased institutional participation in this asset class. The launch of bitcoin exchange-traded funds has already led to many institutional investors, who were earlier sceptical, putting money into this asset.