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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 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
Mar 13
Are markets still overvalued?

Sensex is down 13.6% since it hit an all-time high in Sep 2024.

The pain is worse in mid and small caps:
BSE Midcap: -21.4%
BSE Smallcap: -24.2%

Despite such a steep correction, markets are still not fairly valued, as per long-term data.

A🧵
To answer that, we'll analyse 4 key valuation metrics:

1. Price-to-Book (P/B) Ratio
2. Cyclically Adjusted P/E (CAPE) Ratio
3. Market Cap to GDP Ratio
4. Bond Equity Earnings Yield (BEER) Ratio

Let’s start.
1. PRICE TO BOOK RATIO

The P/B ratio compares a company's (or index's) market cap to its book value (net assets).

The lower the P/B, the cheaper the market.

So how do large, mid, and small caps look now after the recent correction?
Read 17 tweets
Mar 8
Mid-cap & small-cap stocks have seen massive corrections.

Will PPFAS MF use this opportunity to increase allocation in them?

In a recent call, the fund house addressed this question.

It also shared many more insights, which can help you in your investing journey.

A 🧵
Will PPFAS Flexi Cap increase mid- and small-cap exposure now?

The fund house is exploring opportunities but is still cautious.

Since 2017, they’ve kept mid- and small-cap exposure below 20%.

By Dec 2024, small-cap allocation had fallen to just 2.81%.
With the recent correction, they are now exploring options again.

But they still don’t think valuations have hit rock bottom.

So, they’ll be very selective while investing in this space.
Read 13 tweets
Mar 4
Market realities are changing.

What are the trends you should watch out for?

A 🧵 on 5 trends that smart investors are tracking (that you might be missing). 👇
1. Small caps appear to be in the worst shape

Markets have been weak, but the real pain is in small-cap stocks.

Check how different indices have fallen from their peak in Sep 2024:

Nifty 100: 17.4%

Nifty Smallcap 250: 26.14%

The answer to this is in their earnings.
In Oct-Dec quarter of FY25, large-cap stocks managed 6.5% revenue growth compared to last year.

Mid-caps did slightly better. Compared to last year, their revenue in Q3 grew 9%.

But small-cap stocks saw their revenue shrink by 8%—their worst quarter in years. Image
Read 17 tweets

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