As @meetdharam has put it: Expensive Valuations:
Rs.100 in Debt @5% = 105/1 year
Equity corrects 50%
Cheap Valuation.
Switch from Debt to Equity
Rs.105
Markets go up 50% = Rs.157.50

Expensive Valutions
Rs.100 in Equity
Equity corrects 50% = Rs.50
Markets go up 50% = Rs.75
1st Investor protected downside, with no drawdowns. Started with a higher base of 105.

Switched to Equity & participated in full Upside of 50% rally thereafter

Final value Rs.157.50
2nd Investor held onto to Equity at Expensive valuations with 50% drawdown and no downside protection.

On corrections, value came down to Rs.50

Participated in 50% rally thereafter- but was only recouping his earlier losses

Final value Rs.75
Lesson: Invest in debt and wait for correction

During correction invest in equity

Till you wait for correction, your 100 earns debt returns

Waiting patiently in Debt despite a raging equity market is always better than succumbing to greed
In investing not falling is more important than rising.

Good equity returns are generated only after a fall and few good years therafter - which creates long term wealth creation stories

In between funds move from impatient to the patient Investors
And these are basic Pillars and philosophy of my Smart Investment Solutions: Downside Protection and Being in Right Aseet Class at Right Valuations.
Investors must ensure least erosion of their hard earned money. They would have saved this by sacrificing on lot of their dreams and aspirations.

Warren Buffet's 2 Rules of Investing:
1. Do not lose money
2. Do not forget the 1st Rule

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More from @IamMisterBond

14 Oct
Revisit my "QUOTABLE QUOTES" once again. Very relevant in current market or all market scenarios:

"Get driven by creating Wealth for Investors first. If Investors make money, Advisors and AMCs will also make money".
"Everything in Wealth Management is not only technicals and fundamentals. Add a dash of common sense and logic, to take advisory to next level".
Read 8 tweets
3 Oct
Let us do Role Play with #SEBI officials (SO) - they play the role of Investors and we of course are MFDs

SO
1) How much amt shd I invest? 2) Which Asset Class shd I invest?
3) For how long shd I invest? 4) Which AMC & Schemes shd I invest?
5) When shd I exit?

MFD response👇
MFD Response:
1) Spk with RIA
2) Search in Google
3) Search on Social Media
Following queries are compiled based on past experiences. Not to demean anyone. Just bear with the examples as they are only to showcase the futility of current MFD vs RIA notification.

DIY Investors, do not take these personally
Read 9 tweets
2 Oct
Recently I have conducted Webinars on Power of Triple Advantage theme.

Please click on following link to view the recording:

bit.ly/33o94qp
Triple Advantage includes 3 Asset Classes:
Indian Large Cap - 85%
US Large Cap - 15%
Dollar Diversification
Is adding US Equity a recent fad or long term strategy or theme?

According to me this should have been done a decade back. It is like a lost decade by not investing in US Equity
Read 8 tweets
29 Sep
An update by @FTIIndia . Do not believe unsubstantiated claims by unknown entities like CFMA.
By their own admission, none of their Members were Unit Holders of affected schemes. On what basis are they mis-guiding Investors and getting involved? Only Investors are suffering ImageImage
When will Investors realise the futility of the legal path they are pursuing instead of letting the Fund House manage winding up of schemes and start repaying

It is visible for all to see that these schemes are now cash +ve with almost 8000 crs having been raised till now
Following these unknown entities who claim to be working in their interests is the biggest folly of Investors.

Wake up to reality, remove all legal cases, start receiving your funds and move on in life.
Read 4 tweets
22 Sep
There is very heated debate on Low Cost vs High Cost, DITECT vs REGULAR etc. There are passionate views on both sides.

I was an Advisor till some time ago. No longer. So I have seen both sides of the coin. My thoughts on this debate:
There is No Black & White in any profession or business. Most models work at different times, for different people. Both can co-exist based on one's perception.
This debate and differentiation was created only post SEBI introducing DIRECT option in 2013. Till then the debate was Upfront vs Trail, High Expense vs Low Expense etc and no one doubted the importance of intermediaries in the Mutual Fund practice.
Read 13 tweets
11 Sep
SEBI seems to be forgetting that they are Market watchdogs and not Fund Managers.

Too much of such tinkering can have devastating effects on various schemes.
Judge the impact based on this break up of Large, Mid and Small Cap exposures in current Multi Cap schemes.

At current market levels, there will be buying in Small Caps and selling in Large Caps - which is not advisable from any angle.
There will be major chaos in current Multi Cap schemes. Those who invested with an aim to have Large & Mid Cap exposure will have to bear the burden of Small Caps as well going forward.
Read 6 tweets

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