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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

Jul 5
₹4,843 crore: These are the profits Jane Street allegedly made by quietly rigging the Indian markets, per SEBI.

Jane Street resorted to sophisticated methods of manipulation and rigging.

They made a profit of ₹36,502 in little over two years.

Here’s what happened. 🧵
First, let’s understand index options.

Think of it like a game of luck.

You bet ₹2 that Bank Nifty will cross 49,000 by 3:30 PM on Thursday.

If Bank Nifty ends at 49,001, you hit a jackpot. If it ends at 48,999, you lose the entire ₹2.

Just one point can flip your fortune.
The “target” you bet on (49,000) is referred to as the strike price.

If the index ends above it, your bet is said to be “in the money”, and rewards can be huge.

If the index ends below, your bet is “out of the money” and it’s worthless.

You either win big or lose it all.
Read 21 tweets
Jul 2
Everyone likes Warren Buffett, but only a few apply his teachings.

He believed time rewards great businesses and punishes the weak.

So we built a Buffett-style filter and tested it on Indian stocks.

The result might surprise you. A 🧵 Image
Buffett categorises businesses into Great and Gruesome.

One builds wealth over decades. The other burns capital endlessly.

Understanding the difference is crucial to achieving long-term investment success.
What are Great Businesses?

According to Buffett, these are compounding machines.

They earn high returns on capital, generate strong cash flows, hold pricing power, and stay ahead of competitors for years.
Read 17 tweets
Jun 27
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. Image
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. Image
Read 15 tweets
Jun 21
Silver recently crossed the ₹1 lakh mark in India.

Is the rally over? Or are we just getting started?

We analysed 7 key drivers of silver prices to find out.

Let’s dive in. A 🧵
1. Supply & Demand

Like any commodity, silver’s price is shaped by the forces of supply & demand.

Its supply comes from mining and recycling.

However, its demand is far more diverse, including jewellery, coins and industrial applications like electronics and solar panels.
Per the Silver Institute, since 2021, silver has consistently seen demand outstrip supply.

In 2025, demand is expected to be 1,148 million oz vs. supply of 1,031 million oz—a deficit of 118 million oz.

It is largely due to booming industrial use, especially in solar panels. Image
Read 19 tweets
Jun 18
You bought a stock as its profits were rising.

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🧵 Image
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.
Read 15 tweets
Jun 15
PPFAS Flexi Cap vs HDFC Flexi Cap

Both are extremely popular (the two biggest Flex Cap schemes).

Both have created immense wealth for investors.

And both have experienced fund managers with a solid track record.

Which one should you pick? A 🧵 Image
Let’s start with returns.

Over the long haul, the PPFAS scheme comes out on top.

3-year & 5-year returns: HDFC Flexi Cap has beaten PPFAS Flexi Cap.

A key reason for this is the turnaround in HDFC Flexi Cap’s performance post 2020.
The fund’s performance wasn’t stellar before 2020, as it had leaned towards out-of-favour PSU stocks for a long time.

Post-2020, the market cycle turned. PSUs rallied & the fund’s fortunes changed.
Read 17 tweets

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