Super proud to announce that @ETMONEY leads the way in the #MutualFund industry. Corners a whopping 28% market share of net equity sales in the month of June.
When you stay true to your customers, success always follows!!
What added to the cheer was that we played a pivotal role in ensuring money was invested in categories made for long-term investing, not flavor of the season
In #LargeCap & #MultiCap funds, which are a core holding for investors, we had positive net sales of ₹25+ crores while the industry inflows were negative ₹1,000 crores
We accounted for nearly 14% of total net sales in the entire #MidCap category. Out of ₹36.70 crore net sale of the industry, we contributed ₹4.9 crore
#HybridFunds are usually the best bet during volatile times like now. We had a net positive sale in these funds while the industry was in deep red with -₹3,000 crore net sales
Our contribution to the #GiltFunds sale was minuscule & we are happy about it. That's because the recent good return on this category is driving the inflows. And that's not the reason to invest in a category
We were able to pull this off thanks to robust growth in our #SIP book, and less than industry SIP cancellation rates. While the industry had -3% m-o-m change in SIP inflows, we had a +1% growth
This wasn't a coincidence but a result of our deep commitment to help Indians make the right investing decisions. And here is what we did post the big market crash of March
As the markets crashed, we asked our users what their concerns were. We then got CEOs of top AMCs to answer those questions. This as the country was being put under lockdown
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We also understood it is only human to get swayed by emotions & make decisions that might hurt long term goals. So before our users hit the final redemption or SIP cancellation button, we gave them options that they could go for rather than canceling
Lastly a special mention to our #engineering team for sweating it out and making all of it possible by building industry-leading and highly helpful features on the app
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A company barely made ₹42 cr in core profits. But it still reported ₹351 cr in net profit.
That’s an 8x jump. What’s going on?
This Zomato (Eternal) case teaches a crucial investing lesson:
Investors need to look at net profits and EBITDA differently.
Let’s break it down🧵
EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortisation.
It tells you how much a company earns from its core operations.
What are core operations?
These are business activities that generate revenues.
For Zomato, that includes food delivery, groceries, and more.
To get EBITDA, you subtract core expenses from revenue.
In our earlier example, core expenses for Zomato include delivery partner payouts, employee salaries, tech costs, and restaurant commissions, among others.
Check the image to see how you can calculate Zomato’s EBITDA.
But even after strong earnings, the stock price crashed.
What went wrong? The answer wasn’t in the income statement.
It was hiding in the cash flow statement.
Here’s a breakdown of how to read it the right way. A🧵
A company can post strong profits and still be short on cash.
Reason: The income statement is based on the accrual method. This means sales are recorded as soon as a deal is made, even if the customer hasn’t paid yet.
Check an example.
Let's say a company sold goods worth ₹1 lakh to a customer.
The customer paid ₹50,000 in cash and promised to pay the remaining later.
The income statement will reflect the complete ₹1 lakh.
The actual cash received will be reflected only in the cash flow statement.