Thread by @KAnantrao

Looking at FII buy sell data to gauge the mood of Foreign Portfolio Investors in India?

Will this uni dimensional approach yield the desired results for someone who is looking to invest in Indian Equities post a 40% decline from the Jan 2020 peak?

Just crunching FII data may not be the only way to look at Indian Equities which are part of Emerging Markets as per the FPI classification. A different yet simple strategy needs to be adopted in these tough time before investing in an EM like India.

Thought process matters.

As a retail investor, we were never bothered about investing style. Top down or bottom up style of investing didn't make much difference to us because we simply labelled ourselves as "Retail Investor" & that gave us the license to get away.

We said, these styles are not for us.

Whenever there is a 40% draw down in our investment & we had no courage to pick stocks post the decline, we simply chose to invest in Index Fund/ETF, why, because that was perhaps the easiest thing to do.

Rationale was simple, when Global Mkts bounce, so will our Index Fund/ETF.

But we forget that two corrections may not be similar as economic conditions changing across geographies at different pace. Also, FPI's too have adapted to such crisis & with new learning they may have adopted new guidelines for improved investing.

So why'd FPI invest in India?

FPI's would need a compelling reason to bring back the funds divested from India in recent months/quarters & for that they would use the "Top-Down Approach"which involves looking at the economy big picture to make investment decisions.

But Retail investor vs FPI is no match.

But who said that there was ever a competition between Retail and FPI in the first place. All we say is to learn some of the best practices and methods to improve ourselves. We know that markets would bounce back once the situation caused by CORONAVIRUS pandemic is controlled.

Having said that, we also need to recognise the challenges each country and its equity markets would face post CORONAVIRUS and that would be unique in nature for different nations and regions.

It is that period when divergences will start to emerge in equity markets worldwide

Will India be a preferred destination for FPI's once funds start coming back to markets? Will Indian Equities relatively do better compared to a Taiwan, Brazil, China or Argentina and South African Equities post the CORONA phase?

These are the questions which need to be answered

Within India, one needs to find, which sector, industry, market cap index will perform the best on a relative basis so that capital allocation can be done accordingly.

Simply going by the current weight age won't help & a thorough introspection of the present decline is needed

To address one of the many challenges in the markets, we are pleased to announce our new webinar titled "World Equities - India in the Global Village" on Apr 06,2020.

We will be covering 20 major global indices from both developed as well as emerging markets.

We will also be covering equity indices across geographies including Asia, Europe. North & South America as well as Australia in our webinar.

The highlight would be Relative Strength Analysis of Indices between different regions to ascertain high probable candidates for bounce.

We don't how long the pandemic will continue to paralyse the normal life & how long financial markets will correct either. But we can engage ourselves in preparations in order to be ready for executing our strategy and this webinar is just that one step towards it.

In the webinar,we will focus and discuss purely equity indices both Indian as well as foreign thus making it one of a kind experience.

From stand alone charts to $ adjusted RS chart across geographies, the canvas will try to open different thought process for participants.

The webinar will be minimum 3-5 hour long & given our limitations, we would be content to engage a limited number of participants for the webinar not exceeding 80 in number.

We have priced the webinar moderately at Rs.5,900/- per participant (inclusive of applicable taxes).

You can register for the webinar using the link below
rzp.io/l/culPktt

Registrations close on Saturday Apr 04, 2020 at 1800 Hours India Time.

You can know more about my journey in financial markets from the following tweet

https://twitter.com/KAnantrao/status/1238750486171271169?s=20

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