MAM
Google to ban cryptocurrency ads
MUMBAI: In a move that will have far-reaching ramifications for speculative trade of digital currencies, technology giant Google has announced that it will prohibit advertisements promoting any kind of cryptocurrency. The move is in sync with Google’s upcoming financial services policy. Such ads will be banned across the tech behehoth’s products
In a blog post on the company’s website yesterday, Google’s director of sustainable ads Scott Spencer cited the “unregulated” and “speculative” nature of many of the financial products being advertised.
Google’s decision mirrors a similar announcement from Facebook earlier this year that reflects a broader push by the advertising giants to rebuild user trust in their platforms.
Last year, Google struggled to address advertisers’ concerns that ads were being run alongside objectionable content.
The ban on crypto-related terms will begin from June this year and will cover search, display and YouTube ads for binary options and synonymous products, cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets and cryptocurrency trading advice).
Spencer also stated that the new policy would contain measures to restrict the advertisement of contracts for difference, rolling spot forex and financial spread betting.
The company further stated that advertisers offering the aforementioned features will be required to be certified by Google before they can advertise through AdWords.
To be certified by Google, advertisers will need to be licensed by the relevant financial services authority in the country or countries they are targeting; ensure their ads and landing pages comply with all AdWords policies and comply with relevant legal requirements, including those related to complex speculative financial products.
The company also stated that advertisers can request certification with Google starting March 2018, soon after the application form is published. However, certification will be subject only to select countries.
Bitcoins and other forms of cryptocurrencies have gained widespread popularity in the recent past. They have, however, been shunned as illegal forms of tender. India’s finance minister Arun Jaitley, in his budget speech for 2018, affirmed that the government would do everything to discontinue the use of bitcoin and other virtual currencies in India. He also pointed out that India did not recognise them as legal tender and would instead encourage blockchain technology in payment systems.
Also Read:
Google Pay launched in US, UK; Tez gets new features
Facebook to ban cryptocurrency ads
YouTube, FB to corner major ad spend globally over 5 years
Has advertising finally begun to embrace AI?
Risk and return maintain inverse proportionality within mutual funds – higher potential rewards accompany elevated volatility, while stability demands lower expectations. SEBI’s Riskometer (1-5 scale) standardizes visualization, but quantitative metrics reveal nuanced relationships across categories and market cycles.
Fundamental Risk-Return Relationship
Equity funds (Riskometer 4-5) deliver historical 12-16% CAGR alongside 18-25% standard deviation—large-cap 15% volatility, small-cap 30%+. Debt funds (1-2) yield 6-8% with 2-6% volatility. Hybrids (3) average 9-12% returns, 10-14% volatility.
Sharpe ratio measures return per risk unit – equity 0.7-0.9, debt 0.5-0.7 over complete cycles. Higher risk categories compensate through return premium capturing economic growth.
Volatility Metrics Explained
Standard Deviation: Annual NAV return dispersion—equity 18-22%, debt 4-6%.
Maximum Drawdown: Peak-to-trough losses – equity 50%+ (2008), debt 8-12%.
Beta: Market sensitivity – equity 0.9-1.1, debt 0.1-0.3.
Sortino Ratio focuses downside volatility—equity 1.0-1.3 favoring recoveries.
Value at Risk (VaR) estimates 95% confidence, worst 1-month loss: equity 10-15%, debt 1-2%.
Category Risk-Return Profiles
Large-cap equity: 12-14% CAGR, 15% volatility, Sharpe 0.8.
Mid/small-cap: 15-18%, 22-30% volatility, Sharpe 0.7.
Corporate bond debt: 7-8%, 4% volatility, Sharpe 0.6.
Liquid funds: 6.5%, <1% volatility—capital preservation.
Credit risk debt: 8.5%, 6% volatility—yield pickup.
Hybrids: 10-12%, 12% volatility—balanced exposure.
Review types of mutual funds specifications confirming mandated asset allocations driving profiles.
Historical Risk-Return Tradeoffs (2000-2025)
Complete cycles: Equity 14% CAGR/18% volatility; 60/40 equity/debt 11%/11% volatility; debt 7.5%/5% volatility. Bull phases (2013-2021): equity 18%, debt 8%. Bear markets (2008, 2020): equity -50%/+80% swings, debt -10%/+10%.
Inflation-adjusted: Equity 8% real CAGR; debt 1.5% real—growth funding requires equity allocation.
Risk Capacity Assessment Framework
Short-term goals (1-3 years): Riskometer 1-2 (liquid/debt), 2-4% real returns. Medium-term (5-7 years): Level 3 (hybrid), 4-6% real. Long-term (10+ years): Level 4-5 (equity), 6-9% real.
Personal factors: Age (younger = higher risk), income stability, emergency fund coverage, other assets. Drawdown tolerance—20% comfortable vs 40% discomfort signals capacity limits.
Portfolio Construction Principles
Diversification: 60/40 equity/debt reduces volatility 40% versus equity-only while capturing 80% returns.
Correlation: Equity/debt 0.3 average enables smoothing.
Rebalancing: Annual drift correction sells outperformers (equity +25%), buys underperformers (debt -5%).
Style balance: Large-cap stability offsets mid-cap growth volatility.
Quantitative Risk Management Tools
Sharpe Ratio: >1.0 indicates efficient risk-taking.
Information Ratio: Alpha per tracking error.
Downside Deviation: Focuses losses only.
Stress Testing: 2008 scenario simulations reveal portfolio behavior extremes.
Conclusion
Higher mutual fund risk levels correlate with elevated return potential – equity 12-16% amid 18-25% volatility versus debt 6-8%/4-6%. Risk capacity matching, category diversification, rebalancing discipline, and quantitative metric interpretation align portfolios with personal tolerance across economic cycles.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
