How to beat the Index? From retail #investors to large fund house, everyone is trying to beat the index. It just means, making more or less similar returns to #Nifty but with lower risk. How does a retail investor can make better returns than index with lesser volatility?
Consider a year like 2008, where Nifty itself crashed more than -52% and many other mid cap and small cap stocks have lost more than 70–80% in that year alone. Any investor, who sees their fund value going down more than half, would never step back into the markets again.
Nifty Bees yearly returns since 2008. One lakh invested in the index in year 2008 would have grown to 2.3 lacs by end of 2019. But this return comes with a huge draw down of more than -52% in the year 2008
What if we can make a similar returns but with least risk, bringing down the volatility to a greater extent? Instead of investing only in Equity, if we could diversify into different asset classes, we can generate similar returns with less volatility.
So let's consider investing in Equity, Gold and Fixed Income. Let's see what's the historical returns of each asset class.
And liquid bees generates around 6% per year on an average. Combining all these instruments will generate a well diversified portfolio. Thanks to my friend @vishalmehta29 who suggested me this diversified allocation during one of our weekend discussions.
Since we have ETF for all these three asset classes, it's much easier for us to diversify. All we have to do is invest in the following ETFs 1. Nifty Bees (17.5%) 2. Nifty Junior Bees (17.5%) 3. Gold Bees (35%) 4. Liquid Bees(30%)
Consider you have 1 lac capital,
then invest Rs.17,500 in Nifty Bees,
another Rs.17,500 in Junior Bees,
Rs.35,000 in Goldbees and
Rs.30,000 in Liquidbees.
If we followed the above diversified allocation from 2008 to 2019, One lakh invested in the portfolio in year 2008 would have grown to around 2.32 lacs by end of 2019, the returns are almost same as investing in equity only, but we achieved this returns with the max risk of -10%
With investing only in #Equity, our risk exposure are very high, bringing in #Goldbees will offset some of the losses we might face during hard times in equity markets, and #liquidbees should generate fixed constant returns year after year.
Everyone wants small cap returns with large cap draw down. By following the above approach, it is much simpler for any retail investors to generate better returns with least draw down. Deatiled blog post here squareoff.in/single-post/Ho…
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More than 30 million users actively use @tradingview but very few people have Pine script coding knowledge due to which many users just stick to basic Trading view charting functionality, let me explain how can you write your own Pinescript code using @ChatGPTapp free version🧵
I wanted to study the spike patterns in BankNifty on expiry days, within 5 minutes if market moves greater than 100 points I wanted to track those days and see what happens after such spike, does market makes follow through move or it reverses after spikes?
Go to ChatGPT and enter the below Prompt Create a Pinescript that can track every candle and see if market has moved up more than 100 points or moved down more than 100 points in just one candle and plot bigger text S above that candle.
I just came back from a 10 days solo trip to Bali,I always wondered whats the fun when you travel solo, I was so wrong. Met different people across the world, spent time at mesmerising places, its a different vibe. Trading & Traveling is a deadly combo. Here's how I managed it🧵
Flight - There is only one direct flight from Delhi to Bali operated by Vistra which costs around 35k. Most flights are connecting via KL or Singapore, Use Skyscanner to find cheapest deals. Extra 20kg baggage cost additional 10k. Default is only 7kg.
My biggest blunder was to carry heavy luggage as its for ten days, I realised the laundry cost is very less in Bali. Around Rs.400 for 5kg, so travel light, this can save you additional 10k in ticket cost and makes it easier when you roam around islands in Ferry.
Ever wondered where the big institutional investors are putting their money? Is there any way to track which stock has highest holdings of FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors)? Using this free screener its easier to track. Here's how🧵
Go to and click on Screens and Click on Create New Screen. Large-cap companies have a market cap of Rs 20,000 crore or above. Mid-cap companies is between Rs 5,000 crore and less than Rs 20,000 crore, small-cap companies have a market cap of < Rs 5,000 cr buff.ly/3TkZeji
So let's find out which stocks under each of these segments has highest FII, DII holdings. This query retrieves list of small cap stocks with market cap <5000 cr and DII share holding > 50%, once you run the query it gives you the list of eligible stocks.
Is your Kids spending so much of time on iPad/Phones/TVs? No matter how hard you try, still is he/she spending more hours on it? Me and my friends also face the same problem. Here's what I did that really helped a lot in changing my kids behaviour. 🧵
It all starts at an early age, in order to make them eat you start giving them a phone, playing some random YouTube videos. It gets the kids attention. Then as he grows, in order to keep them busy, so that they dont disturb us, we give the phones. This habit sticks to them.
You cant simply grab the phone from your kid, when you continue to chat with your friends on whatapp group. The only way to stop your kid from using the device is, first you need to reduce your screen time. Remember kids are watching and copying everything you do.
Even though Chatgpt has gained enough traction most of them are using it as a replacement to Google search. But with Chatgpt4, data analysis & backtest have become much easier.
Here's the step by step process.
Sign up with by default you get access to ChatGPT 3.5 only. With this version, you can upload any files to perform any data analysis. It's more of a plain chatbot with AI. chat.openai.com
The real beast is inside Chatgpt4, to get access to it, you need to upgrade to plus with $20 per month as charges.
People who have gone through hardship during their early age, who really struggled hard financially when they were kid, once they become successful, most of them do this mistake when they become a parent. Things which you were not able to buy when you were a kid,
1/n
you start spending so much money for the things your kid wanted. You don’t want your kids to get disappointed, so you tend to buy them those costly toys or whatever they ask for you tend to buy them. It makes you feel more happier seeing your kid happy
as he got what he wanted but for the same thing you struggled during your childhood. But when we do this, our kids never learn one of the very importance lesson in life. Managing Money. They assume they could afford anything easily in life. They will hardly see any real struggle