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Oct 1, 2020 11 tweets 6 min read Read on X
#ETMONEY has been leading the charge in providing the most seamless MF investing experience. And now after 4 years & 11 million transactions, we wanted to look at how #Indians are investing and what changes have happened in these 4 years. Time for India Investment Report #2020
First up - The tale of States. While Maharashtra sits pretty on top in the list of top contributions by value, Uttar Pradesh, a relatively less obvious state takes second spot. We're proud to have made investing accessible to Indians in every nook & corner of this vast country🙂
In the second part of this tale of states, we analyzed Equity Allocation from each state. And this time it was the smaller states that came on top. That’s because as awareness about #MutualFunds grow, people from states like J&K are latching onto equities🥳
Next up, the #topcities. Metros continue to lead the charge here but non-metros are catching-up & fast. #Patna, #Lucknow, and #Jaipur are now in the top 10 cities and at this rate will overtake #Chennai very soon. In fact, over 55% of ETMONEY investors today are from non-metros👍
Our un-jargonized approach is democratizing investing at multiple levels. The percentage of women investors on ETMONEY has gone up from 9% to over 19% in the last 4 years. And the best part, they have near-perfect portfolios! 💃💃
Another heartening thing is that even the younger generation is getting on the bandwagon of investing and saving, thanks to this ease. The number of under 36 investors and their value share has gone up in the last 4 years📈
We all want the secret sauce that can help us succeed as investors! 🪄🪄 We (sort of) found it. A mix of ELSS Funds, Large Cap Funds, and Multi-Cap Funds had the major allocation in portfolios of ETMONEY’s top 25% investors.
Another investing behavior that is helping ETMONEY users earn better returns is #AssetAllocation. They invest in categories other than equities and regularly rebalance by exiting equities. To help them, we send periodic portfolio health checks 🩺
This behavior of having a balanced portfolio and rebalancing meant most ETMONEY users had a positive investing experience through the years despite tough market conditions 🚀🚀
The next thing is where Indians need to do better. Looking at what percentage of salary Indians are investing, we saw increasing income is not leading to increase in investments. Not investing enough is as harmful as not investing at all. So give your investments a yearly raise💰
Lastly, from SmartDeposit to automated alerts to portfolio health checks, we have done quite a bit to help India invest right. And this report is a testament to how our efforts are making difference in the lives of Indian investors 🙏

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More from @ETMONEY

Mar 31
The Nifty Smallcap 250 Index fell 12.64% in February.

But your SIP returns (XIRR) might show a shocking -80%.

Does that mean your ₹10,000 SIP investment is now worth just ₹2,000?

No!

Then why does XIRR show such a big drop? Let’s break it down. 🧵
In SIPs, each instalment is invested on a different date.

So, some investments get more time to grow, and some get relatively less time.

Since the time of investment varies, simple return calculations don’t give an accurate picture.

That’s where XIRR comes in.
XIRR treats every SIP contribution as a separate investment.

And shows the average of how each SIP instalment grew every year.

This makes it the correct method to measure SIP performance over the long term.
Read 13 tweets
Mar 29
Last 1-year returns:

Nifty Smallcap 250: 6.5%
Tata Small Cap: 15%

This outperformance isn’t a one-off.

The fund has consistently beaten the index as well as its category average.

Its biggest strength? It protects your returns when markets fall.

A 🧵 on its investment strategy.Image
1. Focus on minimising losses

Corrections in small caps can be brutal. But this fund has handled them effectively.

Since its inception, Nifty Smallcap 250 has had 29 negative months. Tata Small Cap outperformed in 26.

In 10 months, when the index fell more than 5%, it did better in 9.Image
This solid downside protection isn’t by chance.

In a recent interview, Fund Manager Chandraprakash Padiyar highlighted that they look for companies that are reasonably priced, can scale consistently, are debt-free, and generate strong free cash flow.
Read 11 tweets
Mar 26
A simple hack before Mar 31 can help you save tax on the gains you made from stocks and equity funds.

Here’s what you can do:

- Sell your investments
- Book profits & losses
- Repurchase immediately

This is called ‘Tax Harvesting’. Let’s see how it works.

A 🧵
A few basics before we jump to tax harvesting strategy

Your profits from equities are divided into two buckets:

1. Short term: If you sell within one year (of purchase)
2. Long-term: If you sell after one year Image
How to Reduce Taxes?

You pay LTCG tax only when your gains exceed ₹1.25 lakh.

So, the trick is not to let your gains go beyond this tax-free limit.

How to do it? Sell a part of your gains to book LTCG and reinvest it.

Let’s check an example. 👇
Read 12 tweets
Mar 21
How can you make the best returns, taking the least possible risk?

Nobel Prize winner Harry Markowitz spent his life researching this 👆.

His study led to Modern Portfolio Theory, which revolutionised investing.

Here’s a simplified version that every investor must know.

A 🧵
First, let’s understand Markowitz’s principles.

He showed you can earn better returns by taking lower risks if you diversify.

But is that possible?

Equity can grow at 12%-14%. Debt offers just 6%-8% returns.

Can a low-return asset make your portfolio more efficient?

IT’S POSSIBLE! 👇
Say your portfolio has ₹60 in equities & ₹40 in debt (earns 7%).

Your friend’s portfolio is 100% in equities.

Year 1: Markets go up by 12%

Year 2: Fall by 30%

Year 3: They rise 12% again

After three years, you end up with ₹102. Your friend has ₹88.
Read 24 tweets
Mar 20
Funds that usually fall less during corrections tend to do well over the long term.

Parag Parikh Flexi Cap is a good example of this.

But how do you pick funds like PPFAS Flexi Cap in other categories?

Here’s the framework and a list of 8 similar funds across categories.

A🧵
Before we share the names (it’s in tweet 10), let's quickly examine how we selected them.

We looked at 5 popular fund categories.

(1) Multi Cap, (2) Large & Mid Cap, (3) Flexi Cap, (4) Mid Cap and (5) Small Cap.

We filtered them in 3 simple steps.
STEP 1: FUNDS THAT FELL LESS DURING THE RECENT CORRECTION

First, we shortlisted funds that fell less than the benchmark between Sep 26, 2024 and Feb 28.

This is the period when the correction was steep.

The results were surprising. 👇
Read 14 tweets
Mar 18
Have you started an SIP recently and feel underwhelmed by the returns?

There’s something called the 8-4-3 SIP rule.

It explains how returns truly work over time.

Let’s understand this in detail. 👇 🧵
8-4-3 is a compounding rule.

First 8 years – Returns are usually modest. This period can test your patience.

Next 4 years – Your corpus nearly doubles.

Next 3 years – Compounding accelerates.

Let’s understand this with an example.
Say you start a monthly SIP of ₹25,000.

Assuming 12% annualized returns, here’s how your corpus will grow:

After 8 years: ₹39.25 lakh
In the next 4 years: ₹77.02 lakh
Next 3 years: ₹1.18 crore

This rule is based on linear growth - which doesn’t happen in equities.

BUT…
Read 8 tweets

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