Abhishek Profile picture
23 Oct, 63 tweets, 30 min read

8th edition.


Soulful music by none other than @VijayKedia1 before the AGM kicks off

check this one: @vijaykedia1 at his best
When will PPFAS will launch a new scheme?

Only if, PPFAS is excited about putting their own money & can add value to investors

Right now, there is no plan to cut any more expense ratio.

#NewFundoffer? nops

Flashback to March 2020. Rajeev is a storyteller!!
Talks about March 2020 and trailing returns were looking sub-optimal.

This too shall pass. (Used for March 2020 and in equal vocal force used for Sep 2021 as well)
mentions an example of a doctor in the mid-'50s calling Rajeev asking, if he can get the same return of 50% as last year. Get's an answer as No:)



First Broad Question: On Market Valuation

Overvalued on an overall basis. Does that mean, Sell equity and putting in a liquid fund? Answers No.

Because there are pockets of value (the fund hasn't really gone too much in cash).

Why cash level not increasing.

No such objective to have a cash level. Gives example of Powergrid which reduced cash level by 3-5% across two funds.

Fund will be taking calls as per individual stocks.

Question on the valuation of certain IT companies.

Mindful of valuation, already decreasing the weight in Midcap IT. Not buying a stock also reduces portfolio weightage.


Mentions one-of-a-kind company like #CDSL and #IEX and will be mindful if the selling is the right decision because of run up. want to be absolutely sure of valuation


Question of Foreign Limit

478 Million$ is available, 522 $ Million invested. doesn't depend on the current valuation of Foreign stocks.

still, a long way to go. 1 billion dollar limit is not cast in stone.


Fund size correlation to performance.

Mentions, how we are no longer a 300 crore fund (Rounding error) to a decimal point now. MentionsFlexi cap fund (17k crore almost Nav)
there are NFO raising 15000 crores in one go and has to be deployed in one month time


Gets About 900 crore (best month) in a month. About 600 to be deployed in 30 days in India and 300 crores outside.

Mentions about IEX block deal, CDSL block deal. Not all blocks are reported. The path from 17K to 30K crore doesn't change anything.


Question on Pure global fund

No plan to launch any further scheme. Rather use the limit in Flexi cap fund.

#PPFAS #PowerGrid #IEX #Auto #EV

Talks about Power and auto sector.
Mentions Tony Seba!! The Guy is amazing.
The Grid


Shift to spot buying electricity market from long-term trades. happening because of the nonpredictable nature of renewables. Electricity traded on IEX shall grow faster than overall electricity generation.

Keep watching regulatory space, don't have the answer to it.


Pricing may come down and it should be expected and not unduly worried about.

on the valuation front, 200 Rs level( where maximum purchase happened), the run-up is sharp and strong at 800. Not Buying at the current level.

The last they bought #IEX was in 2020. Additional money going to other stock. Not selling as of now but watching the space closely.

#PowerGrid #PPFAS

The power grid works on the business model of managing capacity. Draws monthly fees example of OTT.

because of renewable energy unpredictability due to mixed change, a company like power grid has an opportunity to incur CApex and increase capacity.
#powergrid #PPFAS

on debt level

These utility companies have high leverage and it is not considered risky because the business is predictable. Example of Covid doesn't impact Power Grid business.
#powergrid #PPFAS

On being Public sector

Not their favorite choice (govt being holder), but given the monopoly and govt is actually focusing on turn around + privatization theme.

made sense to buy a Power grid looking at the intent as well of govt.

#Powergrid #PPFAS

Chances of increasing shareholder return by the public utility company. Mentions examples of how Powergrid spun off some assets and released a lot of cash.

An increase in capacity addition will come for multiple reasons. EV + renewables + GDP Growth.


Auto companies agree on movement to EV but have different views on the rate of transition to this disruption.

Watching the space #HERO #Bajaj #Maruti

Taking serious efforts in EV space.

#Auto #Suzuki #Maruti

Plants on EV battery in Gujarat. Aware that TATA is aggressive but Suzuki is being deliberately slow and waiting for the right time.

Hero already has an investment in Ather. Bajaj is working on an electric chetak.

#Auto #Suzuki #Maruti

Current demand low due to semiconductor etc but pent up demand will cover up.

fund is watching the space.

Why low weightage despite best in the business.

Fund: Great respect for Org. Aware of Mis steps though and undergoing changes internally. repeated outages on infra, Credit card embargo, Mr. Puri stepping down and NBFC foray competing which had stress

This combined with Covid pandemic, one space where they were unsure was financial space. brought down weightage in all private sector bank.

Been gradually increasing weightage in ICICI and AXIS given covid impact wasnt too bad.

wait and watch for HDFC.

#BANK #PSU bank

nothing against but like private bank which have adequate product + investment in tech and no undue risk in one segment/geography.

#portfolio #allocation

what does a <1% weightage add to fund in terms of value.

Pharma space is low. They look at generic companies and look at basket instead of each individual companies. No real unifying reason.
#portfolio #allocation #ICRA

Company like ICRA used to be top holding and we kept on trimming at higher price when moody offered and were left with residual at low price.

Added again in pandemic.

#CAMS: asked for big quantity but didnt get it. eventually sold it off.

Ahh.. the favourite #ITC

same rhetoric question on capital allocation and hotels.

Raj says refer to this

Same answer as last year, more dividend+ no capital allcoation in hotels. Have seeded FMCG business (Margins getting better).



concerns on taxatation increase


ITC was able to pass on the tax increasing to customer. Secondly the panel mentions taxation of all TObacco product and this could be beneficial for cigarattes.


illicit ciggrates might also get curtailed due to Panel. @kushkatakia tweet talks about it in some other way.



Question on #Mphasis #HCL
have seen improvent in capital allocation. This company generates consistent cash flow, zero debt.

Generating tremendous cash flows. so far portfolio companies in IT meets the criteria.

#Conservative hybrid fund

why low dividend yield stocks chosen?

Clarfies that customer has not checked perhaps the interim dividend yield. Also clarfies, divident yield will not be the only criteria.

#ghost of #Past #NoidaToll #ILFS

what is Fund doing to avoid such mistakes.

Rajeev says: Look at avoidable errors, learn lessons and try and avoid them in future. Errors that come account on chance/ probability, you can not do much.

Explains why they bought ILFS.


Portfolio company hasnt made any meaningful return/ losing market share.

Raj mentions, next 2-3 years there will be new launches. BTW the allocation has come down to 1.8% from highs of 5%. Not bought anything after some skimming in March/April last year.


Repeat question/every year. Refer to this (Past video)

Rajeev believes the discount of holding company narrows or increases over long term. Like bajaj auto and bajaj finance/finserve. underlying company doing well augurs well.

only 2200 Watchers.. expected more. They could have used whatsapp/ Notification to get more views


Assessment of returns in 2-3 years and why Reits are not part of flexicap.

Rental cost is just 1% of IT companies. with increasing in IT hiring, the demand is strong for office space. outlook for Reit should be good for india.

Employee do want to go back to office. PPFAS is in camp of demand revival for Commrecial reits. Should augur well.

Brookfield has highest Yield. The reason of having 3 reits instead of 1 is that these reits capture different cities as their area of strength.


Why not in Flexicap.

it has to come out of 35% of portion of foreign stocks. Better risk reward as compared to Reits.

# Zyduswellness

why sold?

Growth rates were not as high + Heinz Aquisition and additonal debt and valuation had gone up to a high level.

Valuation had shot up significantly. 1% return since PPFAS sold:)

#Cyclical why not investment in real estate, building matrial stocks etc.

Valuation not attractive or few companies they are not confident. Real estate: Don't know when will downcycle come or mis allocation of asset buying?

watching the space but nothing compelling.


Neil answers

Has worked closely with father, defines culture of PPFAS.
Hold Schemes as well as shareholder of company.

if Money was a concern, Rajeev would have left long back:) check salaries of HDFC/ICICI


Give liberty to Rajeev to navigate, no targets to achieve.

please make a video and publish:) @npparikh6

Funny Quips from Rajeev:) headhunters dont reach out to Rajeev anymore.

Possibility of underperformance (mentioned in factsheet note)

Rajeev says, no desire to participate in frenzy stocks.Fund wont be in hottest sectors (Refers, 2007 DLF/Unitech or 2017 mid and small cap frenzy).

#Passive versus #Active

if you dont want to focus on process/ manager/ ideology: Go for passive

Active fund: Have it's own positives. Long answer, difficult to paraphrase (watch video)


How safe is ppfas process. (Prone to hacking, fraud by employee etc)

lot of investment going in to cyber IT applications. Engagement with outside hackers to find vulnerabilities. Periodic Audits.No broker has more than 5%

@npparikh6 Publish a video:)

How much the performance has come from foreign stocks.

Rajeev: Never focused on where does the return has come from.This question comes every year.

Since inception:Indian stocks have done better than Foreign stocks!! there you go !!! not true for all the time.

It has been a YOYO kind of a things which is giving higher returns. Net Net both components have done better than Nifty500/SP500.

Have done less than nasdaq (Foreign stocks).

For *fun*
Refer to this tweet:) if only hindsight was so better.



Fund hasnt invested in start up kind of business. Where cashflows+ ability to understand business. (Example of Mature Amazon)
Based on Roadmap visibility on cashflow. Some of the listing in INDIA, the fund doesnt have end game visibility. Staying Away as of now.

Why exit load for 2 years versus 1 year for flexicap!! (repeat)

- 2013: no exit load, lot of in and out and was messing the procss of deploying money

2 year exit load was a way to demotivate short term traders to come to fund and encourage long term investing.DELIBERATE.

Fund taking conginzance of interfund tweaking of switching for portfolio rebalance. Fund will think on this.

exit load money goes back to remaininuing unit holders. Funds don't get the exit load.

Why in tax saver and not in flexicap.

Marketcap was 2500 Crore at that time, tax saver AUM was lower and hence was able to get a meaningful share.

No point having a small weight in flexicap.

Tax saver may always have more stocks as compared to Flexicap.

#Portfolio balance ?

largely driven by business development and change in valuation. example of persistent and emphasis selling.

#bajajholding liquidity

only 15K average sharing volume. How will fund manage in case of some adverse situation.

very good question!!

long answer and difficult to pharaphrase. refers to block deal etc. watch video
Made about 60-80 dollars perhaps in alphabet class a to c conversion..

#ITC covered call, hardly used as of now. Building capabilities but will use it sparingly.


Are you still positive?

Pharma: bought when significant low entry point due to US FDA issues but balance sheet were strongs. So took basket instead of single company.
3 hours now and non stop questions :)

What is the average AGM of Indian companies?
#IEX and #PTC

While unsure on regulations, difficult to lodge a dominant company with platform/network effect

Example of Google attempt at social, NSE derivatives example as compared to Bse
MCX, despite troubled time, it's still dominant.

Will see how it pans.
NBFC versus new age fintech

Not a big fan of fintech ( good on tech/app development) but lack business model.

If I had to choose, will go for texh savvy private bank or well run nbfc
Possibility of buying European energy stock

Rajeev says, out of syallabus questions :) not that deep a universe

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More from @Crazynaval

13 Oct 20
7500 crores.. number of average ciggies smoked in india (from ITC)..

80% of market share of legal ciggi market, which it self is 75%

Total ciggies smoked per annum: about 14000 crore!!

Cig is just 10% of tobbaco used :)

Don't worry, tobbaaco money is not going any where :)
Which food company has closest association with farmers after government of India and amul


Who has access to largest set of farmers?
17 states, 35000 village, 40 lakh farmers
Approx number of aata packets sold in an year: 15-17 crore bags!!

Who has the capacity? Manufacturing capabilities?
Who has the capacity to source that much wheat?
Who has the capacity to perhaps print their own carry bag
Who has a better cost control? Could rule exports?
Read 18 tweets
28 Aug 20
One of the question i see lot of people asking in regards to PPFAS is " Where has return come from. Indian holding or foreign holding.

Lot of people have this high perception of only Nasdaq or tech stocks leading to it.

pretty baseless question though:)

A small thread


There is absolutely no right way or scientific way (except some complicated XIRR). I made some assumptions.

a. Portfolio, stock holding and assume no change in stocks during the duration.
b. 31st dec, 2019 as the stock holding
c. 27 august 2020 as the final value.

what were PPFAS value on 31st December.
they held about 12% cash. 26% in foreign stocks.

red indicate, they sold the position after dec 31st.

i have assumed, imagine they can not do any thing with their stock portfolio ( No change in existing stock) except cash)
Read 7 tweets
9 Jul 20
Around 2017, I dabbled in to seeking financial advise. From a well known Chennai based planner. While I was decently well read on the subject but I still want to see what that advisor had to offer. Read on [A thread]

Goal 1: I was planning to buy a new car in few years. Target was to replace old one at 8-9th year.

I had money year marked in a low duration debt fund/ liquid fund.

Advise: put in a balanced fund for 4 years at 12% !!

No sequence of risk offcourse because planner is superb!! Image
Goal 2: that time I was blind about buying a home

My plan: create down payment in 4 years along with existing saving, rest take loan. Mode of saving: liquid funds

My planner: hey maccha, equity maccha

Equity for a goal 4 years away In full blown plan of 24 pages.

Hmmm Image
Read 10 tweets
3 Jul 20
PPFAS NAV 13 Feb: 29.29 (Sensex/~42k)
PPFAS NAV 24th March: 20.15 (Sensex/25k)
PPFAS NAV 3rd July: 28.70 (Sensex/ 35k)

42% from bottom. While most has been saying it's because of Nasdaq, the game changer has been 13% odd cash and bets they took

#ppfas #assetallocation
They had around 12-13% cash. While Sensex is still 17% down from ath and Nasdaq at last ath, let's see how the cash helped

1./ ITC, took 5% punt
2./ They loaded on MCX, CSDL, averaged more on axis
3./ Moved out of nestle and picked Microsoft of almost same value

They also moved a 4% position in AMZN and further 2% in FB once it crashed to 160 odd. Didn't add a share in Google.They also took a quick trade in HDFC though can't figure out what for but it must have been bought pretty low and then made a good trade given HDFC was 10%
Read 10 tweets

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