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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

May 28
Flexi Cap funds have a lot of freedom. But each has a distinct style.

@PPFAS Flexi Cap: Value-focused + bold cash calls

JM Flexi Cap: Aggressive, prefers mid & small caps

HDFC Flexi Cap: Steady performer + large-cap heavy

So, which one fits you the best? Let’s find out. A🧵
We analysed every Flexi Cap fund in India across 5 key parameters:

-Allocation to Large Caps

-Exposure to Mid & Small Caps

-How frequently the fund buys and sells stocks

-Performance during good times

-Performance during tough times

Here’s what we found. 👇
1. Large Cap Allocation

Flexi Cap funds, on average, invest ~60% in large-cap stocks.

We used this as the benchmark to judge each fund’s style.

Let’s see which funds stick close to this 60% mark and which schemes go heavy.
Read 19 tweets
May 22
Markets move in cycles, and winning sectors keep changing.

If you can spot which sectors will lead next, you can earn market-beating returns.

Here are 4 smart strategies to help you pick winning sectors. A 🧵 Image
1. Tracking Economic Cycles

The economy moves in cycles: expansion, peak, contraction, and recovery.

Tracking economic and business indicators can help you figure out where we are in that cycle and which sectors are likely to perform well next.
For instance, when credit picks up, companies start spending more, interest rates ease, and earnings improve, which usually signals an expansion phase.

During this period, cyclical sectors like financials, real estate, metals, and consumer discretionary tend to lead the way. Image
Read 14 tweets
May 13
HDFC Focused 30 Fund is topping the charts across 1, 3, and 5-year returns.

But it wasn’t always like this. It has turned around since 2020.

That’s why its 5-year returns are more impressive than its 10-year returns.

What are the factors working for the fund? A🧵 Image
The fund was launched in September 2004.

Until 2020, its performance was a mixed bag.

Between 2005 and 2020 (16 calendar years), the fund managed to beat its benchmark (Nifty 500 TRI) only 8 times.

It saw some good years, but some forgettable ones as well. Image
Since 2021, it has been a different story.

The fund has beaten both its category average and the Nifty 500 every year.

Every year since 2021, the fund has been among the top 10 performers in its category.

Let’s see what has changed for this scheme. Image
Read 16 tweets
May 10
If you understand the financials of a burger-selling stall, you can easily read the financial statements of a conglomerate like Reliance Industries.

Let’s simplify the Balance Sheet, Income Statement and Cash Flow Statement to the extent even your child can understand.

A🧵 Image
1. Balance Sheet

Imagine you start a burger stall.

You invest ₹50,000 from your pocket. This is your equity.

Further, you borrow ₹20,000 from a friend @ 5% Interest. This becomes your liability.

Total money you raised = Rs 70,000
Say, from the corpus you have, you buy a cart, a stove, a gas cylinder, and ingredients worth ₹60,000. These are assets that help you make money.

The remaining ₹10,000 is with you as cash.

This is how the opening Balance Sheet will look for this business. 👇 Image
Read 31 tweets
May 7
One in three active equity funds fail to justify the risks they are taking.

The amount of risk they take does not match the returns they deliver.

SEBI’s recent metric reveals this.

Once you know this, it may change how you choose mutual funds.

A 🧵 Image
Why Risk-Adjusted Returns Matter

Say, two people invest ₹1L. After a year, both have ₹1.08L.

One chose FDs, the other equities.

Same return, different risk.

Was it worth it for the equity investor? NO.

That’s why risk-adjusted returns are important, not just returns.
Two funds may give similar returns, but one could have taken far more risk.

The Information Ratio helps you spot this gap.

That is why SEBI has asked fund houses to publish this ratio every month from April onwards.
Read 17 tweets
May 4
Markets have started to recover.

During this phase, Value/Contra funds shine.

So, we examined the 3 most popular schemes in this space:

SBI Contra
ICICI Pru Value Discovery
Invesco India Contra

All of them have given impressive returns. Which one is better for you? 🧵 Image
Let’s start with their trailing returns.

The Contra Fund from @SBIMF shines in the short to medium term, while Invesco India Contra leads in the long term.

However, all 3 funds have comfortably outperformed their category average and benchmark in the 3, 5, and 10-year periods.
Now, strong returns in a bull market don’t tell the whole story.

How did they perform when the market crashed?

Let’s zoom in on 2025’s correction.

ICICI Pru Value Discovery fell nearly 10%.

On the other hand, SBI Contra dropped 21%, and Invesco India Contra crashed 30%.
Read 16 tweets

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