Discover and read the best of Twitter Threads about #LargeCap

The big implication of new rules in #multicap fund category by SEBI. An impromptu attempt at rambling up some thoughts. Would love comments and feedback no how to benefit from this trend. Some points i cover in tweets below 1/5

1) 18-20% of the Total Equity AUM is in Multicap Funds - Suddenly the rules of the game have changed. Will lead to merger and other creative solutions but not mad buying of smallcaps.

#FunFact - There are 35 schemes of #MultiCap Fund and 29 of #LargeCap & 27 of #LargeandMidcap Fund. #Multicap AUM = 1.46 lakh cr. #Largecap = 1.48 lakh cr. The regulator has a problem in principle and true to label issues. Why did they not notice till now? Source -AMFI site

#TweetStorm - A Quick take on the new #SEBI circular. 1) The new rule states that a Multicap Fund needs to have 25% in #LargeCaps, 25% in #Midcaps. 25% in #Smallcaps. This needs to be aligned before January 2021.

Data Source - MoneyControl 2) The Total AUM of the Multi-Cap Funds is 1.53 lakh crores. 25% allocation to #Smallcap =38300 crores. Current Allocation= 11240 Crores. Potential Buying or Difference to be Aligned = 27062 crores.

3) Why is everyone going mad about it in #Whatsapp and #Twitter. Total Market Cap of 251st to 500th Company is 9 lakh crores. 27000 Cr implies 3% of Equity. In many of smallcaps promoters own 50-75%. That's like 10% of float buying theoretically. Source - AMFI.

#Ambanization of #Nifty50 - A short #tweetstorm. Full post on this link - nooreshtech.co.in/2020/08/ambani… #Reliance is now 14% of the Nifty. Till the time #Reliance outperforms , #Largecap #Mutualfunds to underperform?

Top 2 stocks 23.56% of the Nifty. Top 3 equal to 31.12% and Top 5 equal to 42.83%.Top 20 Stocks are 79.26% of the Index. Lower than the peak of 80.4% .
Top 10 Stocks are 62.6% of the Index. All time High Concentration.

Banking and Financials continues to see weight drop from 40% to 33.16% .
Reliance is the largest weight at 14%. Last 23 stocks weight combined now lesser than Reliance.28 out of the Nifty50 stocks have a weight of less than 1%

Read 4 tweets

ETMONEY

@ETMONEY

@ETMONEY

Super proud to announce that @ETMONEY leads the way in the #MutualFund industry. Corners a whopping 28% market share of net equity sales in the month of June.

When you stay true to your customers, success always follows!!

For more details, visit our blog: etmoney.com/blog/etmoney-l…

What added to the cheer was that we played a pivotal role in ensuring money was invested in categories made for long-term investing, not flavor of the season

Read 14 tweets

Sumit Verma

@sumitverma29

Negative divergence observed in Breadth oscillator #NIFTY

Implication: Potential Short term correction possible from here on to the tune of 3-5%

Anticipated correction has started. Even there is reversal in Step & Ladder chart. #Nifty

Now the divergence is more evident.. #Largecap vs #Smallcap

Sunil Jhaveri

@IamMisterBond

Outerformance of MisterBond's strategies:
#ExitStrategyfromSIP v/s #SIPKaroBhoolJao & #BuyandHold v/s #SmartInvesting over past 2 & 5 years. #MultiCap

Outerformance of MisterBond's strategies:
#ExitStrategyfromSIP v/s #SIPKaroBhoolJao & #BuyandHold v/s #SmartInvesting over past 2 & 5 years. #LargeCap

Outerformance of MisterBond's strategies:
#ExitStrategyfromSIP v/s #SIPKaroBhoolJao & #BuyandHold v/s #SmartInvesting over past 2 & 5 years. #MidCap