My interview with @MubinaKapasi on the Money Show on @ETNOWlive : what is #AssetAllocation and how does #DAAF fit into AA:

Currently it makes sense to do SIP/STP into DAAF and then switch to Equity on corrections

Don't worry it is my interview only😀😉
At this juncture if you have FOMO, you may regret in future. As Harry Markowitz said in his Thesis on Risk-Reward Tradeoff:

Our Value STP follows 1X, 3X, 100X formula:

Lumpsum in Liquid/Equity Saving and switch into:

1X - in DAAF in Red Zone (current)
3X - in Equity in Yellow Zone
100X - Equity in Green Zone
Returns in DAAF vs NIFTY:
From when markets went in Red zone:
01-07-17 to 03-08-21:
Pro Cycl DAAF: 12.92%
Counter Cycl DAAF: 10.74%
NIFTY 50: 13.74%

When markets once again went in Red:
01-07-20 to 03-08-21
Pro Cycl DAAF: 35.41%
Counter Cycl: 29.53%
NIFTY 50: 49.00%
Above is only comparing #DAAF with NIFTY 50 (though DAAF on an average would be 50:50 Debt and Equity).

Results are even better when you compare NIFTY 50 with Smart Solutions of MisterBond where we would have switched into Equity from DAAF in Green Zone and vice versa
As can be seen, without taking any extra risk, smoother journey, less volatility, better risk- reward trade off, with almost 60-70% in cash at this juncture, investor is better placed to be cautious and be in conservative asset class.

Strategy you adopt is entirely your choice
Investors never expected these kind of returns during #pandemiclife . Treat this as bonus and be satisfied.

Only GREED takes us down.

We forget teachings of #WarrenBuffett during Bull markets:

Be #Fearful when others are #Greedy and Greedy when others are Fearful.

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More from @IamMisterBond

18 Jul
Many have asked me about spate of IPOs and NFOs launches and my thoughts. Should they invest or not?

Another question: why are AMCs launching NFOs at expensive valuations?

My thoughts on this subject:
If you had bought 5kg of sugar from a grocer & you order another 2kgs next day, will the grocer not sell you more? They are in the business of selling you day to day groceries.

What and how much you need is your choice as a customer. You cannot blame the grocer for selling
Put differently:
Which medicine(scheme) needed for which patient(Investor) is job of a Doctor(MFD) or patient(DIY Investor). It is not job of Pharma Companies(AMCs).

Just because Pharma Cos repackage the medicines, does not mean patients should increase their dose
Read 8 tweets
5 Jun
#FTSaga Update:

One more tranche of 3205 crs repaid on Jun 4'21

I had written an article on 24th April 20, day after @FTIIndia winding up schemes

In the end, I had mentioned a few points on what to expect going forward. Let me take each point and see where we stand today.
Link of my April 2020 article for ready reference:

Point No 1:
This is not delay or default and no haircuts so far

FM was asking time for reversal of Risk Aversion & markets to stabilise & normalise

Proven correct
Point No: 2

This is to give better value to Investors at cost of delayed liquidity

Again proven correct from almost 71% collections so far at far better values than on the date of winding up
Read 10 tweets
3 Jun
Investors have short memories and wish to dissect market phases based on what suits their sensibilities.

Current hot topic of discussions on Social Media:
How Mid and Small Caps have delivered stupendous returns since March 2020
What they have conveniently forgotten is their recent past experience of investing in Mid & Small Caps from Jan 18 to Dec 19 and till Mar 20

Above table shows entire journey of same Indices over different time periods vs 2 popular DAAF schemes and vs Smart Solution of MisterBond
Many have questioned our exit from Equity in July 2020(after entries in March 2020):
As @morganhousel has mentioned in his book:
It is not being conservative but creating Margin of Safety. This raises odds of success at a given level of risk by raising your chance of survival
Read 7 tweets
30 May
MisterBond's Rankings as on May 30'2021: From 01-04-15 to 30-05-21

Rankings of only those which were in existence from 01-04-15

Those wishing to subscribe can make an advance payment. Subscription will open from June 15 after making balance payment:
3 Types of Rankings:
1) IHR: Investor High Returns - Higher returns in higher return bands
2) IER: Investor Experience Returns - IHR adjusted for Volatility
3) % of observations of each scheme beating Industry Average
Large Cap Scheme Rankings:
Industry Avg: 8.50%
Number of Observations Completing 5 years: 284
Based on 5 year rolling returns
Read 8 tweets
18 Jan
Great news for #Investors. Verdict is out in #FranklinTempleton saga:

YES for #Winding Up all 6 schemes.

Now Goal Post should change and focus on giving mandate to @FTIIndia for liquidating assets. Here is my Thread on this subject:
Good news for #Investors of #franklintempleton :

-Total Cash Collections of all 6 schemes Rs.13789 crs +

- 5 out of 6 schemes cash positive

- only 6% of AUM left as borrowings in Income Ops
All this without any active intervention/selling/monetizing.

Imagine implications to positive liquidity creation when Fund Manager is allowed to actively Liquidate/Sell securities
Read 8 tweets
7 Jan
People are going Ga Ga on Markets crossing 14000 NIFTY. My take on this:

1. Most Retail Investors had exited in March 2020 crash
2. They waited for further correction to enter - that never happened
3. Most have been only waiting on the sidelines without participating
From July 2017 to Dec 2020,

NIFTY 50 posted + 11.50%
NIFTY Midcap has just managed to break even and come into +4% plus &
NIFTY Small Cap still not recovered full loss ( -1.50% )
Which just goes to show that those under Buy & Hold are only recouping their losses and have not managed to participate fully in post March 2020 rally.
Read 8 tweets

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