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…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
1 Lac invested in this stock has become 1.5 Crores in less than one year. Upon further research found a pattern in all such stocks which made a phenomenal move within short span of time, here's the detailed report 🧵
SABTNL is one such stock where stock price gained more than 20500% in less than a year. Inspite of having poor fundamentals the stock price has sky rocketed.
Fishy part is promoters have increased their stake from 22% to 60% in just one quarter. Public holdings and DII holdings decreased during the same period. Looks like an organised pump and dump play going on.
I have made close to 90 lacs profits in the last 267 trading days with my trading system. In the last 6 months made 50% net returns. Not even a single day I have interfered manually. I was in a dilemma, should I withdraw profits or continue to compound? I decided to …🧵
I decided to withdraw profits to buy a flat. If you check all my old tweets, I would have tweeted always against buying a property. What changed my mind to buy a flat instead of compounding my capital. Let me explain that.
Trading is a tough profession, market doesn’t care how intelligent you sound, end of the day if you are not disciplined enough to follow your trading system, it kicks you out. It’s not a question of does option buying works or option selling works or Greeks works?
Did a 10 days solo trip to Kashmir, spent just ₹800 a day by staying at Hostel, met wonderful people around the world and this was most life changing experience of my life. Kahsmir is truly a heaven on earth. Here’s how I planned my trip🧵
The moment you arrive at Srinagar none of your other State prepaid mobile network work here. I bought a Jio Sim for 500₹ which is sufficient enough for next ten days to cover my work and to stay connected. If you have postpaid, then no problem.
Ola/Uber doesn’t have a big traction here, Jugnoo is the widely used app here. You can use that to book cab to your hotel or opt for prepaid taxi. I did not have any plans or itinerary, once I arrived at Srinagar, I booked my stay @ZostelHostel for 2 days only.
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.