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@kalramukesh

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@ETMONEY

Apr 19

Trump has made tariffs a hot topic.

However, countries use many other innovative ways to restrict imports.

There is a whole playbook of tricks for blocking foreign goods, without charging a rupee.

Here are 5 smart trade barriers countries use to protect their economies.🧵

1. Import Quota

It caps the amount of a product that can be imported.

If a country says, “We will import only 10,000 tons of sugar this year,” that’s a quota.

It shields local producers from foreign competition.

Quotas may not necessarily involve imposing tariffs. But they still restrict imports.

The EU, for example, caps steel imports from non-EU nations to protect local manufacturers.

Reportedly, after Trump’s tariff move, they plan to cut steel inflows by another 15%.

Read 15 tweets

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Apr 13

Debt funds used to be tax-friendly.

Then came the rule change in 2023 — now they’re taxed at your slab rate.

But fund houses have quietly found a way out.

They’re tweaking the debt-oriented Fund of Funds (FoFs) to slash your tax to just 12.5%.

Let’s see how it works. A🧵

First, let’s simplify Fund of Fund (FoF).

It's a mutual fund that doesn’t invest in stocks or bonds directly.

Instead, it invests in other mutual funds.

So, a debt-oriented FoF primarily (at least 65% of its corpus) invests in multiple debt schemes.

Now, let’s understand how the new variant of debt FoFs can solve the issue with debt funds.

Debt funds were once loved for their stability and tax benefits.

But from April 1, 2023, the tax rules changed.

And they became much less attractive. How?

Read 15 tweets

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Apr 10

What if you invest in companies that give the worst returns?

Can you beat the markets with a Loser Portfolio?

Valuation guru Aswath Damodaran says it works in the US.

Is it possible with Indian stocks? Let’s find out. A 🧵

We did a simple exercise to put this theory to the test.

Every year, we picked the worst-hit stocks (by price decline) and invested an equal amount in each.

The idea was simple: We wanted to check if big losers bounce back.

First, we selected the 35 biggest losers of FY15 (Apr 1, 2014 - Mar 31, 2015).

Invested Rs 10,000 in each of them on Apr 1, 2015.

Total investment = Rs 3.5 lakh

A year later (by Mar 31, 2016), the returns were 21.7%.

How did the BSE 500 fare? It was down 7.8%.

Read 17 tweets

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@ETMONEY

Apr 7

Nifty 500 crashed 3.42% today.

But this isn’t new.

Markets have tanked as much as 13% in a day.

And they’ve always bounced back — sometimes in less than a month.

But here’s the interesting part: SIPs recover even faster. A🧵

We analysed past market crashes using the Nifty 500 index.

For each crash, we looked at:

1. How long the market took to recover
2. How long an SIP took to recover

We assumed a monthly SIP of ₹5,000 starting 3 years before the crash.

The idea was to check how quickly the SIP recouped its losses.

Let's start with the 2020 Covid crash.

Nifty 500 fell 38% and took 7 months to bounce back.

But a SIP started in 2017? It rebounded in just 4 months.

And this isn’t a one-off event.

Read 8 tweets

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Apr 5

233 stocks from BSE 500 have fallen over 20% since Sept 2024.

How do you pick the best quality stocks trading at reasonable valuations after correction?

Here’s a 9-step framework to separate gems from traps. A 🧵

Using this, we got a list of 15 stocks (covered in tweet 14).

What is this framework?

We tested companies on 9 metrics related to profitability, leverage, liquidity, and efficiency. (See image)

Now, this isn’t just any checklist.

Known as Piotroski F-Score, it is a proven framework by Prof. Joseph Piotroski.

How does this work?

Each company gets 1 point for every metric it passes.

We tested all BSE 500 companies on 9 metrics & added up the scores.

So, scores can range from 0-9.

We filtered out stocks, scoring seven or more to find the strong ones.

But we added a twist to it.

Read 17 tweets

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Apr 2

Your HR will soon ask: Old Regime or New Regime?

After Budget 2025, the New Regime looks like the obvious choice.

However, for some taxpayers, the Old Regime can still make sense.

How will you decide? Let’s break it down. 🧵

Let’s start with how both these tax regimes work.

Old Regime

It allows you to lower your taxable income through various deductions (PPF, ELSS, NPS, etc.) and exemptions (HRA, LTA, etc).

Let’s understand this with an example.

Say, your income is Rs 10 lakh.

Assume total deductions and exemptions you can claim = Rs 2 lakh

Your taxable income = Rs 8 lakh

This ₹8 lakh isn’t taxed at one flat rate. It’s broken into parts, and different portions of income are taxed at different slab rates. 👇

Read 15 tweets

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