Thread by @Crazynaval

PPFAS NAV 13 Feb: 29.29 (Sensex/~42k)
PPFAS NAV 24th March: 20.15 (Sensex/25k)
PPFAS NAV 3rd July: 28.70 (Sensex/ 35k)

42% from bottom. While most has been saying it's because of Nasdaq, the game changer has been 13% odd cash and bets they took

#ppfas #assetallocation
1/n

They had around 12-13% cash. While Sensex is still 17% down from ath and Nasdaq at last ath, let's see how the cash helped

1./ ITC, took 5% punt
2./ They loaded on MCX, CSDL, averaged more on axis
3./ Moved out of nestle and picked Microsoft of almost same value

2/n

They also moved a 4% position in AMZN and further 2% in FB once it crashed to 160 odd. Didn't add a share in Google.They also took a quick trade in HDFC though can't figure out what for but it must have been bought pretty low and then made a good trade given HDFC was 10%
3/n

The belief in top 3 banks continued, they massively averaged axis bank from the cash they had. Surprisngly, they didn't sell any of their positions but nestle. They must be tracking Microsoft for ages but they added only once they built their conviction at almost ATH

4/n

FB is just 10% above FEB ATH, so it's the position which made the difference

Google is still below ATH

$AMZN is the game changer coupled with more cash

OFSS is 60% up from lows, CDSL is close to ATH, mahindra holidays is way below ATH but was added at 130

5/n

So while nadsaq and sensex has risen handsomely, the financial stocks held by ppfas are still below ATH.

Net net, it's that 10-12% cash deployed at 30-40% discount which has perhaps 80% weightage in recovery over and above faang stocks/normal recovery.

#Ppfas #onefund

6/n

So while every one is now trying to run after international funds, do remember there is lot of factors which has contributed to good performance of ppfas. Cash and patience according to me has been bigger levers.

#ppfas :) #onefund #simplifiedinvesting

Not a recco

So the larger lesson and something I have been working more and more is to get the asset allocation right!!

With a good fund house which itself takes cash calls, a good asset allocation model has potential of generating better risk/reward returns over a long term.

And that's why my conviction over ppfas as a medium for my financial goals:)

Takes cash calls/ takes international exposure/ has value as a theme / and has skin in the game.

#ppfas

End :)

https://twitter.com/rohitchauhan/status/1279093133947658241?s=19

Totally agree and that's why I leave my cash calls to FM. I do want to be with a FM who is ok to take cash calls even at an expense of some return