Discover and read the best of Twitter Threads about #amcs

Most recents (13)

Amendment to the Finance Bill 2023 - The #FinanceMinister has made all #DebtMutual fund investments ,after 01.04.2023 taxable as #ShortTermCapitalGains.

No #LTCG on DebtSchemes.

DebtSchemes will now be at par with #BankDeposits on taxation
Hybrid category will start becoming popular with more than 36% in Equity.

Expect more such offerings from #AMCs. Brace for more #volatility in New offerings.
No implications if you continue to hold your existing #DebtPortfolio. Only if you invest fresh funds post 1 April 2023, there will be only STCG like #BankDeposits.
Read 4 tweets
#AMCs are manufacturers and will offer a basket to select from. Would anyone have invested if they came with NFO in March 2020?

It is duty of #Advisors/#Investors to invest or ignore. Just because AMCs offer is no criteria to invest.

Need to introspect before blaming others
Same is the case with IPOs, their timings and their valuations. Companies also come with #IPOs when markets were on a roll.

Again, investors had a choice to invest or ignore.

They invested with GREED and FOMO and now blaming others for these IPOs bombing
Why can't #Investors respect market signals? When going was good, they ignored advice of following #AssetAllocation.

When markets are bleeding, looking at scapegoats for their own actions.

This is #SelfAttribution bias. All good - their skill, all bad - blame it on others
Read 4 tweets
Lot of #AMCs come up with different ideas, themes, sectors.

These are demands from #Investors as they have done well in recent past.

AMCs are manufacturers & will offer what is in demand.

Final choice to say YES or NO lies entirely with Investors based on their #NEEDs
What should investors choose and what should they ignore. A point by point guide on where and why to invest in certain #themes, #MarketCap bias, #Sectors, #AssetClasses etc.

What should be criteria for these selections and what should guide them to resist from Investing?
Lets start with #Debt:

Keep enough money as 1 year of your expenses as #EmergencyFunds in #LiquidSchemes

You already have enough exposure to debt as:

1. #PPF
2. #TaxFreeBonds
3. #FDs

No need for separate debt allocation if you are investing thru #AssetAllocation (AA) or #DAAF
Read 16 tweets
Two major incidents in Debt Markets & learnings from that:

1. @FTIIndia saga of #Winding up 6 #DebtSchemes

2. Delay in @KotakMF #FMPs repayments to Investors & giving time to Borrowers to repay

Disclaimer: Not justifying their actions/inactions/investments etc.
Hugely negative reactions by Media/Investors/MFDs - vociferously blaming respective AMCs, filing Court cases, knocking on doors of the regulator and beyond

Did not make an effort to understand actions of the #AMCs which were done to protect #InvestorInterests
What were choices with AMCs:

1. Winding up by FT/ Delay by Kotak or,

2. Sell underlying collateral at huge discounts, pay what is recovered to #Investors & raise their hands as this is part of #CreditRisk
Read 12 tweets
Many have asked me about spate of IPOs and NFOs launches and my thoughts. Should they invest or not?

Another question: why are AMCs launching NFOs at expensive valuations?

My thoughts on this subject:
If you had bought 5kg of sugar from a grocer & you order another 2kgs next day, will the grocer not sell you more? They are in the business of selling you day to day groceries.

What and how much you need is your choice as a customer. You cannot blame the grocer for selling
Put differently:
Which medicine(scheme) needed for which patient(Investor) is job of a Doctor(MFD) or patient(DIY Investor). It is not job of Pharma Companies(AMCs).

Just because Pharma Cos repackage the medicines, does not mean patients should increase their dose
Read 8 tweets
Read this book at the time of #CAMS #IPO.
A brilliant read to know about the #growth trajectory of the #company & why it's only starting.

@YMehta_ @finthusiasts @nid_rockz @manurishiguptha @MadrasMobile @MarketScientist
@AnyBodyCanFly @ipo_mantra

Thread coming.👇 Image
Foreword by- Mr. Deepak Parekh, Chairman @HomeLoansByHDFC

He writes about India's #economy post #Liberalization & how #companies that have come up have one thing in common- #knowledge.

#CAMS began as a #software development & #computer education firm, moved to share registry services handling #IPO's, later became a Registrar & Transfer Agent (#RTA). It now also handles documentation requirements in #banking, #insurance & #microfinance.

Read 25 tweets
Couple of days back office of #MutualFund house was closed in #Chandigarh as one of the employees at a senior position was tested positive for #COVID19 & also 2 of his family members. The risk is high #AMCs, #RTAs & #MFDs must take ample precautions. @amfiindia @fifaindiaorg
Request all #MFDs to do all transactions in digital mode. Request @amfiindia to ensure that all those requests that are to be submitted physical some digital alter must be opted for. In the interest of #AMCs, #RTAs, #MFDs & #Investors some solution must be thought. (2)
Request @NileshShah68 to kindly look into the matter. As per our understanding the amicable solution to this is taking scan copies of the documents or hard copies can be collected outside the office premises of #AMCs, #RTAs or #MFDs!! @ananthng @Sanjay_69 @klash233 @dhirendra_vr
Read 4 tweets
All categories of #mutualfunds (including ETFs) would be covered under #stampduty charges for units issued in demat & non-demat form. It will cover equity, derivatives & currency trades. Stamp Duty = Direct Tax levied by the govt. u/s 3 of Indian Stamp Act, 1899. @AmarUjalaNews
#StampDuty charges:

Equity (delivery) - 0.015% or ₹1,500 per crs on buy-side

#Equity (intra-day) - 0.003% or ₹300 per crs

#Futures (equity & #commodity) - 0.002% or ₹200 per crs

#Options (equity & commodity) - 0.003% or ₹300 per crs

#Currency - 0.001% or ₹10 per crs
- The #stampduty will also be applicable on #AlternativeInvestmentFunds (AIFs)

- Impact is more on the short term #investments by the #investors

- No stamp duty on #redemption of #mutualfund units.

- Impact at #portfolio level too i.e when fund manager executes transaction.
Read 7 tweets
#AgriculturalProductivity 🔥🔥

1/ From the ZW statistics shown, tobacco&cotton are the only agricultural commodities that are being exported that are in the #Top10ExportGoods (2018).

There is need to consider agricultural productivity commercially as a vibrant economic sector. Image
2/ From this… & the book image below, one realises that the Gvt sets producer price for tobacco, cotton, maize, wheat & soyabeans.

Ironically this is a carry over from the UDI (1965-79) statist policies. This is against how the market needs to operate. Image
3/ The agricultural value chain (#AgVC) & business environment consist of: ImageImage
Read 26 tweets
Moratorium on fresh insolvency is a cause of concern as it may impact #mutualfund #AMCs. A default during this tenure cannot be recognized by AMCs. Resolution timeline relaxation for stressed #assets can be avoided as #banks are not in the position to pass the benefit. @livemint
Request @SEBI_India to create a framework for #MutualFund #AMCs in order to recover their dues. Though #MutualFunds do a thorough due diligence as mandated but it becomes awry in adverse events. Request @amfiindia also to give a deep thought on this. @NileshShah68 @Sanjay_69
What is your point of view on the matter raised? @kaul_vivek
Read 3 tweets
Corporate earnings across sectors may deteriorate in next 2-3 quarters. This would weigh on #stockmarkets & #mutualfunds. Expect subdued returns for next few months. #Investors must recall markets history & it rewards those who exercise patience & make the best of opportunities.
Opportunity to deploy in #mutualfunds & create #wealth for future at attractive valuations with better margin of safety, if #investors have investible surplus & long tenure. #investing #MMFA @Sanjay_69 @NileshShah68 @iRadhikaGupta @Anand_1969 @sundeepsikka @MFBALA @fifaindiaorg
#Investors must remember that some process-driven #mutualfund houses have the ability to beat #stockmarkets & #benchmarks over a period of time & can create significant alpha. @FTIIndia @hdfcmf @abcabslmf @MiraeAsset_IN @SBIMF @NipponIndiaMF @invescoindia @KotakMF @amfiindia
Read 5 tweets
Only when #Investors and #Advisors realise that it is best to stick to AssetAllocation strategy thru BAF schemes for lump sum and SIP and not get lured by different offerings of #AMCs, will they have good Investment experience.
#AMCs should have one flagship scheme which combines all attributes as follows:
1) MultiCap
2) Rebalance like Dynamic Equity
3) add a bit of International Equity exposure

This can create All Seasons Scheme with lower volatility
That's why I like @PPFAS long term Equity Fund which combines all the above attributes.

AMC has stuck to only one scheme without confusing the Investors and doing a good job.

In such a case an Investor may not need an Exit Strategy as it will be in built in scheme construct
Read 5 tweets
Provocative @JAMA_current piece on #AMCs by @ClayDellMed For new school like Dell, focusing on new models makes sense. For thriving AMC like @UCSF, hard to disrupt (w/o harming missions) before incentives change. I see my #1 job as balancing these tensions
By the way, this isn't argument that AMCs should just accept the status quo, not work their tails off on innovation/value/pop health, or fight the tendency to prioritize clinical profits over education/research. All are critical and @UCSF we're trying to do our part.
And I'm grateful to Dell and other new schools for blazing paths that are harder for "legacy" orgs. It's what start-ups should do, and the history of start-ups is that they sometimes end up eating the lunch of the old "battleships" that couldn't or wouldn't change. We'll see...
Read 3 tweets

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