Market participants are going ga-ga over past one & half year returns since March 2020 till now. They are analysing returns in Bits & Pieces.

I do not think many have even participated in this rally as most exited in March 2020, waiting for further corrections
They are conveniently forgetting recent past corrections and drawdown.

Lower the drawdown, faster the bounce backs
Ideal way to look at returns is as a continuous journey. That can give true picture of what Investors would have generated in any scheme.

In spite of euphoria - look at NIFTY Small or Mid Cap 100 returns from 01-01-2018 till 27-09-2021 + attached volatility v/s other DAAFs
#AssetAllocation rocks with smoother investment journey and better Investor Experiences.

Converts short term investors into long term and let's then stay the course to achieve their goals

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More from @IamMisterBond

26 Sep
Two major incidents in Debt Markets & learnings from that:

1. @FTIIndia saga of #Winding up 6 #DebtSchemes

2. Delay in @KotakMF #FMPs repayments to Investors & giving time to Borrowers to repay

Disclaimer: Not justifying their actions/inactions/investments etc.
Hugely negative reactions by Media/Investors/MFDs - vociferously blaming respective AMCs, filing Court cases, knocking on doors of the regulator and beyond

Did not make an effort to understand actions of the #AMCs which were done to protect #InvestorInterests
What were choices with AMCs:

1. Winding up by FT/ Delay by Kotak or,

2. Sell underlying collateral at huge discounts, pay what is recovered to #Investors & raise their hands as this is part of #CreditRisk
Read 12 tweets
8 Sep
My thoughts on NFO of @KotakMF Multi Cap Scheme:

Post recategorizations of schemes, most erstwhile Multi Cap Schemes were converted to Flexi Cap schemes where Fund Managers can decide what Allocation to which Market cap bias.

bit.ly/3BCX9mW

@NileshShah68
Thanks to that, there are very few Multi Caps available now which allocates min 25% each to Large, Mid and Small Caps and balance 25% that can be at the discretion of the Fund Manager.
What is the benefit of Multi Caps?

1. It takes away Fund Manager bias of going overweight or underweight in any market Cap bias

2. Most Flexi Caps are overweight on Large Caps
Read 7 tweets
6 Sep
10 Reasons why Investment Returns are not Investor Returns.

Do not miss this session. It may give you many answers in how to behave in current market valuations.

Get your own invite after registering on:

https:misterbond.in/jigyasa
Bull market horror stories:

1. Did an investor whose portfolio value go up from 10,000 to 1,75,000 finally end up making huge money?

Register here to know outcome for above investor:

misterbond.in/jigyasa
2. Did a Genius investor who booked profits worth 200 months of his salary ended up enjoying it?

To know answer to above question, get your own invite after registering on:

https:misterbond.in/jigyasa
Read 4 tweets
4 Aug
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:

VISUALISED MY GRIEF WHEN MARKETS WENT DOWN AND I WAS 100% IN IT OR WHEN MARKETS WENT UP, I WAS'T IN IT. INTENTION SHOULD BE TO MINIMISE FUTURE REGRET
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
Read 7 tweets
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:
bit.ly/3pmMbNk

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

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