Investors might make money or lose money in this rally. But all the snake oil salesmen and gurus will make a killing off all the unwitting traders and investors who are driven by greed and are desperate to make money.
Several scammy profiles have have 50K, 100K+ followers and are just blatantly peddling stock tips, options calls etc and all these traders and investors are flocking like flies to a piece of turd.
And it's working so far, but when this party ends, whenever it does, all the people who followed these illiquid small-cap gurus will be in deep trouble unable to find a bid even if they want to sell.
We've seen this party before with another set of gurus. And when this all ends in agony, and it will, we will see a new set of matas and gurus and a fresh set of bakras.
Some of these guys are making some serious bloody money. Being a snake oil salesman is the most profitable job on the planet.

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More from @passivefool

19 Jan
Trickle and then a deluge 👇
Slow but steady growth in index fund AUM. for all those people crying about then, there's about 1.5 lakh cr in large funds and just 12000 cr index funds for comparison. Excluding g the EPFO ETF allocations.
I don't think this number will dramatically change until we have a mega market crash. Crashes are the only things that seem to remind investors how most actively managed mutual funds are useless.
It took 2008 for Index fund/ETF adoption to see a hockey stick growth globally. And it will the same here. Given the steady rise since 2014, most investors have seen some green in their portfolios which means they haven't looked closely at the performance they're getting.
Read 9 tweets
16 Jan
It's a beautiful Saturday on this Corona riddled planet. It's a good day to do the following:

1. Open your account statement and find out how much commissions you are paying. You'd be paying anywhere between 0.7% to 1.3% extra over direct plans.
1.5 You can download your statement on CAMS, KARVY, NSDL etc.
2. If you are one of those Robinhood Traders and you started mistakenly investing in mutual funds instead of trading mutual funds, commissions can kill you! A simple 1% difference in commissions can add over 10-15 years. This comparison has been done to death but once more.
Read 26 tweets
14 Jan
What a story this is. Global ETF and ETP assets at US$7.99 trillion. Millions of small investors across the world getting low-cost diversified access to stocks, bonds and Marijuana ETFs and savings billions in fees.

etfgi.com/news/press-rel…
Although ETFs are orphan products in India, one day in the next 7 to 10 years, ETFs will surely see growth in India. Won't happen before the next beat market happens though.
From about 50 ETFs 2-3 years ago, we're ate 100 ETFs now. We're seeing new bond ETFs aper from those 10 year gilt ones, we now have an emerging line up of smart beta ETFs. That's progress.
Read 5 tweets
14 Jan
This 👇

This might seem like another "we need financial literacy" tweet. But to me, it's not, here's my theory:

This speaks volumes about the existing system. It's clearly not working for a whole lot of people, particularly the non English folks and young people.
The product sellers are partially to blame. The nonsense they spew in the name of "financial education" is an insult. All those god awful videos and nonsensical garbage masquerading as "content" is enough to make you wanna gouge your eyes out.
This is even worse in the insurance industry where selling trumps everything. And given that banks are the only source of financial advice most people have access to, the problem has reached nightmarish proportions.
Read 11 tweets
26 Dec 20
Holy shit. 8000 crores raised IN NFOs in a month. Look at the schemes, all pointless garbage!

m.economictimes.com/mf/analysis/eq…
If you look closely, 4 out of the 6 top NFOs in terms of money raised are from bank owned NFOs. These AMCs are notoriously skilled at selling garbage funds through their banking channels. They've turned mis-selling into an art. They're are Picasso's of mis-selling
One would be excused for thinking these are intent based allocations by investors which isn't the case. These funds would've been sold mis-sold by any way possible. Bank RMs are incentivized to do so.
Read 10 tweets
25 Dec 20
Wow, this NFO gravy train isn't stopping

BNP Paribas Mutual Fund has filed to launch BNP Paribas Aqua Fund of Fund. Underlying fund - BNP Paribas Aqua, which invests in companies with a focus on water. Clearly playing off on the hotness of ESG and global

sebi.gov.in/filings/mutual…
The fund has marginally delivered over the benchmark. But the questions is, is it really worth all the hassle? Taking a fund manager risk, theme risk, style risk etc. Sure, you may get paid for it. But it's a hit or a miss.
In my it often pays to keep costs low and keep things uncomplicated as possible. One thing investors might not realize is that this trend of AMCs with foreign parentage or affiliations launching FOFs for useless global funds will pickup steam if the US performance continues.
Read 9 tweets

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